To Contract Traders: Why Do You Always Lose More and Win Less?

In contract trading, many traders face this dilemma: orders with stop-loss settings often experience a rebound shortly after hitting the stop-loss, while orders without stop-loss seem to always be on the brink of liquidation. The reasons behind this may be more complex than you imagine.

First, we need to recognize a harsh reality: to some extent, you are actually gambling against the exchange or other large traders. Due to information asymmetry and differences in capital strength, you often find yourself at a disadvantage. These large traders or institutions may have more market intelligence and analytical capabilities, allowing them to better grasp market trends.

More importantly, your trading behavior may be "transparent". In a highly information-driven market, some large traders or institutions can use various means to spy on your trading strategies, including your stop-loss and take-profit points. Therefore, when you continuously make small profits, they may deliberately create market fluctuations to lure you into larger losses. This "transparency" makes it impossible for you to control your trading fate, rendering you a weak player in the market.

Additionally, it is important to pay attention to external factors affecting contract trading. For example, changes in the political and economic environment, adjustments in industry policies, and the occurrence of sudden events can all trigger severe market fluctuations, inflicting heavy damage on your trades. In the face of these unpredictable factors, even if you develop a comprehensive trading strategy, it is difficult to completely avoid risks.

In summary, the phenomenon of "losing more and winning less" in contract trading often stems from the trader's information disadvantage, strategy transparency, and the complex and volatile external environment. As contract traders, we need to maintain a humble mindset, continuously improve our analytical skills and risk management awareness to gain opportunities for survival and development in this harsh market.