1. Over-reliance on leverage

  • Misconception: Newbies are often attracted by the potential benefits of high leverage and ignore the huge risks brought by high leverage.

  • Recommendation: Understand how leverage works, use it with caution, and avoid excessive risk.

2. Lack of risk management

  • Misconception: Ignore the stop loss and take profit settings, and think that the market will move in the direction you expect.

  • Recommendation: Always set stop loss and take profit, strictly implement risk management strategy, and protect the principal.

3. Emotional Trading

  • Misconception: Being affected by short-term market fluctuations, buying and selling frequently, chasing rising and selling falling.

  • Advice: Stay calm, develop and stick to your trading plan, and don’t be swayed by your emotions.

4. Overtrading

  • Misconception: Trading frequently in order to capture every market fluctuation, ignoring transaction costs and psychological burden.

  • Recommendation: Choose high-probability trading opportunities, avoid over-trading, and focus on long-term returns.

5. Not understanding the contract mechanism

  • Misconception: Not understanding the basic mechanisms of contract trading, including expiration date, settlement method, spread, etc.

  • Recommendation: Learn and understand the basic principles and rules of contract trading to avoid losses due to ignorance.

6. Ignoring market analysis

  • Misconception: Trading based solely on feelings or recommendations from others, ignoring technical and fundamental analysis.

  • Recommendation: Master the basic knowledge of technical analysis and fundamental analysis to make trading decisions based on data and facts.

  • Misconception: Seeing market trends or the success of other traders, and blindly following the trend without doing independent analysis.

  • Advice: Maintain independent thinking and trade based on your own analysis and judgment.

8. No long-term planning

  • Misconception: Only focusing on short-term gains without clear trading goals and long-term plans.

  • Advice: Set clear trading goals and long-term plans, and maintain patience and discipline.

9. Ignoring transaction fees

  • Misconception: Ignoring the impact of transaction costs such as transaction fees and spreads on profits.

  • Recommendation: Calculate and consider all transaction costs and choose the right platform and trading strategy to maximize net profits.

10. Weak security awareness

  • Misconception: Ignoring account security and fund security, such as using unsafe trading platforms or not setting up secondary verification.

  • suggestion: Choose a reputable exchange and enable all security measures such as two-factor authentication and cold wallet storage.

    #合约交易