If you must trade contracts, remember the following points!!

If you must trade contracts, remember the following points! They are crucial!

1. Trading contracts is about risking a little to gain a lot; experiencing losses is normal. However, after hitting a stop loss, there are two types of people: some will frantically open new positions, while others will enter a cooling-off period.

My advice is that if you frequently hit stop losses, you should calm down, temporarily stop trading, and adjust your strategy.

2. Don't rush for success; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset, don’t rush to open new positions, and definitely don’t go all in.

3. It's important to pay attention to the overall trend. When you see a one-sided market from the chart, you should go with the trend and not trade against it. Trading against the trend is the source of losses. Whether you're a novice or an experienced trader, many tend to trade against the trend. However, once a market trend is established, trading against it often leads to severe losses, so we must learn to go with the trend and patiently wait for opportunities to trade.

4. You must manage your profit-loss ratio well; otherwise, it is hard to make money. Ensure that your profits are greater than your losses whenever possible, and aim for at least a 2:1 ratio before considering opening a position.

5. Frequent trading is a major taboo in contract trading. If you are not an expert, you must restrain the impulse to open positions blindly, especially as a novice. New players are often enthusiastic about the market and want to seize every opportunity, but most so-called opportunities will lead to losses.

6. Only earn money within your understanding; this is very important.

7. Do not hold onto losing positions; holding onto contracts is a major taboo, especially for beginners. You must set stop losses; holding onto losing positions is the beginning of a downward spiral. Again, I remind you not to hold onto losing positions.

8. When making a profit, don’t get complacent; complacency will lead to losses.