Total Position Setting: The funds I use for contract trading are always fixed, for example, the funds of one account are always 300U. This means my maximum loss is 300U, and once the market trend is favorable, I have the opportunity to gain tens of thousands of U in substantial profits. This setup allows me to keep risks manageable while seizing the profit opportunities presented by larger market movements.
Initial Investment: My initial trading amount is always very low, based on the philosophy of stock master Livermore. He believes that if you start off right, it's best to start making money. Therefore, the amount I initially test the waters with is always small; even if my total position is 300U, I often start with only single or double-digit U. This ensures I am in a profitable state from the beginning of the trade.
Position Increase Strategy: I only increase my position with profits when there is a clear trend. This strategy allows me to further amplify my gains when the market is favorable while avoiding increased risk in an unfavorable market environment.
Stop Loss Setting: I adjust my stop loss position in a timely manner based on market conditions to ensure I do not lose principal. This is an important principle I adhere to in trading, helping me maintain composure amid market fluctuations and avoiding emotional trading decisions.
Summary: Contract trading is no child's play, especially for those who believe there are certain contract techniques or masters who can predict prices. Do not blindly believe that listening to them will lead to big profits. I certainly do not have any secrets that will make you rich just by hearing them. Moreover, contract trading tests human nature; unless you can stick to using very little money, like 100U or 300U, it aligns with the strategy of 'small bets for big gains,' rather than 'big bets for small gains.'
