Maybe it's not the contract you should quit, but your gambling addiction.
Contracts are just tools. You can use them to gamble. Go all in every time, 125X, and bet that you might be lucky this time, and your bicycle will turn into a motorcycle, your motorcycle will turn into a Lambo, and your Lambo will turn into a bicycle again. You can also learn how to trade and manage risks first. For example, use 5% or 2% of your account every time, and do at least 100 backtesting orders on tradingview over a period of at least half a year to verify whether your strategy is profitable. Otherwise, the money earned by gambling will most likely be returned to the market sooner or later.
I have worked in cross-border e-commerce, Facebook advertising, Google advertising, and Affiliate marketing before. It was not until I encountered trading that I realized what a good skill it is to do trading, and what a good business model that can make money on your own. Unlike some money-making models, the cost of trial and error is very high, and the replicability after making money depends entirely on fate and the platform's policies. Learning trading can completely transition from backtesting to forward testing, then use a small account to do real-time trading, and then transition to operating large accounts for real-time trading.
I know a group of foreign traders. Some of them are not even in high school yet, but they are already very good traders. It is only natural for them to become full-time traders in the future. Of course, most people in the group trade foreign exchange. I mainly trade cryptocurrencies. The strategies are similar. Some strategies work across fields, whether you trade stocks, futures, foreign exchange or cryptocurrencies.
As I said before, if you learn trading as a skill, it may open a new door. Whether it is trading cryptocurrency contracts or foreign exchange futures, to become a stable and profitable trader, you need to do the following three things.
Start by mastering a strategy. The prerequisite is of course to choose a field first, such as only doing contract trading of cryptocurrencies. You can try different strategies when you start learning and find the one that suits you. For example, some people can only spend one or two hours watching the market every day, so the strategy that requires watching the market for a long time may not be suitable for them. They need a swing trader's strategy more than a day trader.
Assuming that you have learned for a period of time (there are countless free resources on YouTube) and found a strategy that you like or suits you, you want to backtest this strategy with at least 100 orders. I recommend more than 200 orders with a time span of more than one year. If you are profitable, you can consider verifying your strategy in the market instead of going all-in at the beginning when you don’t know anything (the more novice, the bolder they are, and the more likely they are to go all-in). If it is a swing trade strategy, such as looking at the 4-hour line, you may not need to test so many orders to get relatively reliable backtesting data.
2. Risk management. This is absolutely indispensable. I don't know if some people have learned about risk management when they are fully leveraged at 125 times. No trader can achieve a 100% win rate. What we need to do is to make more money than losses in a month or a year, and you will be profitable. Note that I said more money, not more wins. For some high RR (risk-return ratio) strategies, you don't even need to win more than you lose to make stable money. For example, for a 1:3RR strategy, you actually make a profit if you achieve a 33% win rate. You lose two orders and win one order, but you win three times your risk. So putting aside RR and only talking about the win rate is just playing rogue. When I first started trading, I came across a strategy that could easily achieve a win rate of more than 90%, but every time I lost 15%, my account would lose money. It must be more than 95% to make that strategy stable and profitable. Also, if you don't set a stop loss, don't fall into the trap of small wins and big losses, unless your test data can support you not setting a stop loss. The circles I'm familiar with all set stop losses for each order, that is, you know exactly how much you will lose if you lose this order. Know your winning rate, know your average RR of winning orders, know how many trading opportunities you can have in the market every week or month, and then set a percentage of the total account risk for each order (you can decide based on your winning rate, such as 2% for conservative, 5% for aggressive). In addition, to avoid revenge trading and prevent yourself from getting carried away, you should set some trading rules for yourself, such as stopping trading for the day if you lose two orders in a row, stopping trading if you lose 10% in a day, etc. These are all part of risk management.
3. Mindset. Only after all the above are done can we talk about mindset. If you don’t have a trading strategy that can make you stable and profitable through backtesting, and you don’t do risk management at all, it is meaningless to talk about mindset. Only after the above two are done, it is time for trading mindset to play a role, which is also the top priority. Some people perform well when backtesting, but they fail once they start real-time trading. This is probably caused by the mindset. For example, you always break your original rules and close the trades in advance because you are always afraid of losing profits. Maybe your winning orders will not reach the high RR when you backtest, which is equivalent to breaking your own rules. In addition, some people always want to eat a fat man in one bite. They think it is normal to not find a job after four years of college. How can you learn a skill that can make a living and even financial freedom in one or two months? It is not reasonable, right? So, part-time trading with a job is fine until you can trade full-time. Your data will tell you one day. In fact, skills can often be learned quickly, but mentality requires longer training, especially for some people who do not have a good mentality at the beginning.
Trading is a practice, just like life. Don’t look at how much someone has earned today or how much someone has doubled their account. Your only opponent is yourself. I am also learning and moving forward on the road of trading. I hope everyone can achieve their goals.
It's not easy to write code, even if it can help one person, it's fine. This is the first time I type so many words on Zhihu~
2024.3.24 Supplement:
Someone actually read my answer and added another one.
In the previous answer, I did not emphasize the importance of high-level execution, which is also essential. What does it mean? Traders are like athletes on the field. One day you win the gold medal (get a profitable strategy and make the first pot of gold), and then you start to get carried away and stop training seriously (start trading casually, not executing the strategy according to the previous high standards; or arbitrarily increase the risk amount of each order, not executing according to the previous risk management standards) and finally you may fall back to being a mediocre athlete (losing the previous profits).
Therefore, trading is a long-distance race. First of all, you must ensure that you do not get eliminated before you have a chance. There is no need to be proud of leading at the start. Only the one who can persevere to the end will be the ultimate winner.
