Pay attention to macroeconomic data and use market sentiment indicators, such as the Fear and Greed Index, to judge whether the market is overly optimistic or pessimistic.
Highly liquid assets are easier to buy and sell, with smaller spreads, which helps reduce transaction costs.
Diversifying investments in different types of assets can reduce risks, but be careful not to invest in highly correlated assets, which cannot effectively diversify risks.
Set stop losses: Set a maximum loss limit for each transaction and use stop-loss orders to automatically close positions.
Allocate funds reasonably and avoid excessive leverage. Make sure that the risk of any single transaction does not exceed a small portion of the total account value.
Regularly review the effectiveness of trading strategies and changes in market conditions, and adjust risk management measures.
The last and most important point is to stay calm and avoid emotional trading.
I wish everyone good luck in contracts
