There are no shortcuts in contract trading; success is definitely not easy. Every trader wants to find the path to success quickly, but in reality, the vast majority will fail along the way. The path to success is long, always learning a bit, practicing a bit, understanding a bit, and improving a bit. Failure and pain are your best teachers.
Price rises and falls form trends, and the inertia of trends drives prices up and down, while price fluctuations change trends. Trends are such a cycle; the hardest part is still the self-control of human nature and emotions.
The establishment of a trend system framework: You have a trading framework; you know when to stop-loss and when not to stop-loss. Most people lose money because they stop-loss randomly, stopping loss on trades that shouldn't be stopped; or because they do not stop-loss, when faced with trades that need to stop-loss, they hold on stubbornly and double down, leading to significant losses.
Everything improves with the establishment of a trading framework. Trading within the framework confines the market to your framework. Once you have a framework, you will discover how the market moves, and you will be able to understand the market. Whatever direction the market takes is within your plan and your expectations.
What leads to profit? In one sentence: solving stop-loss and opening positions with rules, solving take-profit with trends, interpreting probabilities with trends, solving beliefs with probabilities, and increasing confidence with profits.
Discipline and mindset control are paramount. The prerequisite for all this is that you must have a complete, market-tested trading system; otherwise, there is a risk of empty talk.
A trend trading system, a verified, stable profit system, combined with trading rules, and funds management, diversifying across multiple varieties to disperse risks... occupying a probabilistic advantage. Persist in trading long-term.
Within the framework, you have a more flexible trading method, while adherence to discipline relies on awareness.
Understanding that the correctness of contracts is relative, and the methods of profiting from contracts are diverse. Form your own views on right and wrong, which may suit you but not others.
After getting started, you will face human nature and execution challenges, confronting fear and greed, facing yourself; you will discover two sides of yourself, battling with yourself.
After getting started, you have your own system and rules, and trading has a framework. However, due to insufficient cultivation of your human nature, the uncertainty of market contracts, the pursuit of perfection, the complexity of human nature, and market fluctuations, even with a system, execution becomes difficult and is not thorough.
First, continue to cultivate human nature, give yourself enough time to believe in yourself, and use time to make it happen.
Second, the nature of pursuing perfection that leads to inaction will make you abandon the system you have painstakingly established and continue to seek a more perfect system, thus stepping out the door again.
As you progress in contracts, you will increasingly understand the importance of human nature.
When you grasp contracts, you will find execution particularly difficult. If the issue of human nature is not resolved, making money becomes very difficult; generally, it’s only after the market closes that you see how close the money is to you. You cannot achieve it, and you do not do it thoroughly. It becomes a problem that plagues you over a period.
To achieve stable profits in contracts, the prerequisite is good funds management. Funds management is the foundation of stable profits. The methods of profiting from contracts are contrary to human nature, against the nature of the majority. Hence, this is one of the reasons why contracts are challenging.
Attitude towards the market: Do not predict, only follow.
How does the market move? You are at a loss. You think to yourself, I really don’t know. At this moment, you have become passive. You abandon your subjective thinking and completely listen to the market because you have already moved beyond the guessing stage. You no longer care how the market moves; you don’t know, you really don’t know. But you know in your heart, I know what to do.
Foreign markets, news, headlines, main force positions, and other things are things you do not care about at all. You can’t care about them well and instead complicate matters.
You don’t care how tomorrow’s market will move; you don’t have to stay up late watching the foreign market; sleep peacefully.
The process of learning contracts includes one aspect that becomes technically simpler and another that simplifies mindset. Only by achieving these two simplicities can contracts truly become simple.
Simplicity and complexity are interrelated; real simplicity does not come without going through complexity. The simplicity that emerges from complexity is useful simplicity.
If you view contracts as too complex, then they are complex. If you view contracts as simpler, then they are simple. The complexity or simplicity of contracts entirely depends on you.
Contracts are simple; they are nothing more than rising and falling, two directions. Then contracts become simple. In fact, you do not need to know the essence of contract speculation, behind price fluctuations; you only need to know whether the price has risen or fallen.
If you insist on complicating things: the price has risen, you must figure out why it has risen? Is it the fundamentals? Or did Zhejiang Yong'an buy? Or did COFCO go short? The more you consider, the more complex it becomes. The more references you make, the more complex it becomes.
Reflections on one's own human nature in contract trading: stable losses, how you trade, how you lose become a habit. Everyone has this experience; at the beginning of trading contracts, you might even make money by mistake, making money inadvertently. You might even make a lot of money.
After a while, being taught a lesson by the market several times, I realized my ignorance, so I started looking for books and learning on forums. The result was that the more I learned, the more I lost; no matter what I did, I was losing, and losses became a norm until I had depleted my funds.
Stable losses are a habit. The more you trade, the more you lose; it feels as if the market is against you. It’s as if the dealer is watching your trades, specifically targeting them.
What causes stable losses? Human nature, the instinctive reactions of people. A normal aspect becomes your speculative weakness in speculation, along with your habitual thinking and behavior; a series of factors lead to your stable losses, causing you to lose no matter what you do.
Human nature is like the Earth's gravity, holding you back, preventing your speculative dreams from taking off. It seems this period is the dark age of contracts, a time without hope and light; most people are eliminated during this stage.
How to solve human nature issues? Through systems and rules. Once you have a system, you will also discover mindset issues. How to solve mindset issues and self-regulate? A series of questions that require you to continually resolve. The longing for happy trading, easy trading, and confident trading reflects a person's mature and stable profitability.
A mature and stable profit person has an open mind, a calm demeanor, and humility towards people and things. It is said that people who trade contracts go through several cycles more than most because they have walked the path they need to walk.
