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Learn Contracts from Zero Foundation Lesson 1: What is "not predicting but following" in contract trading?

"Not predicting but following" in contracts, what exactly is not predicting and what is following? The prediction here means that before placing an order to enter the contract, you can know how the market will go in advance, and you can predict the future.

Although everyone knows that predicting the future is unreliable, many new traders have such perfectionist fantasies, thinking that certain indicators or a combination of certain indicators can predict the future, so that they can place orders in advance and make a lot of money in trading, but what is the reality?

No one can predict the future. If you keep following the prediction, you will suffer more and more losses.

What does "following" after having a trading system mean? It means following the judgment of the trading system on the trend. Each transaction is trial and error. The transaction result is left to probability, and the profit depends on the success rate and the profit and loss ratio.

Let me give you an example, and you will understand. Look at the picture below. The trading system in the picture is to judge the trend by the market breaking through the trend line. Every time we follow the trend line breakthrough to enter the market, we don’t predict whether it will succeed or fail after the break.

We only follow the market trend after the breakthrough. If it fails after the break, stop loss like the trend on the left side of the picture.

If the break is successful, stop profit like the trend on the right side of the picture. Before entering the market, we don’t know how the market will go, but we only follow the trend and know how to trade.