Adhere to two major principles when doing contracts, and it is difficult to lose money
Zero-based learning of contracts Lesson 3
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In the contract market, profit and loss are commonplace. You can look up the previous transaction records and see that the reasons for easy losses are nothing more than these two points.
As long as you avoid them, it is difficult to lose money!
First, control the loss margin of a single transaction. Have you ever had this experience? If you misread the market once, you have to bear the loss and end up with a mess, causing a large loss in the account or even a liquidation.
Therefore, we must control the loss margin of a single transaction, such as setting a 5% loss stop loss. Even if we go in the wrong direction and suffer a loss, we must admit it. If you have a green mountain, you will not be afraid of running out of firewood!
Prevent irreparable losses due to a single misreading of the market and emotional interference!
. Second, control the maximum loss margin of a single day. Emotionalism is a taboo in trading.
Once you lose a lot of money, your mentality will be messed up. You will start to trade frequently and hold heavy positions. Even worse, there will be situations where you don’t stop losses. You always hope that the market will turn around against the wind. So how can you avoid this situation? Set the maximum loss margin of a single day in advance. Once it is reached, force yourself to stop trading to prevent irrational trading behavior in order to recover losses. The specific loss margin can be set according to your habits and risk tolerance. Trading is a probability game. There is a 50% probability for both long and short positions. No one always makes mistakes. As long as you control these two points, it is difficult to keep losing money.
