The core of making money with contracts? Just 8 words: Small losses can be tolerated, big profits can be taken
Fans often ask me about the key methods of contract trading. In fact, my logic is very simple, just eight words: Small losses are controllable, big profits can be magnified.
This approach does not have complex techniques, but it can help you make steady profits amidst fluctuations. The key is to strictly follow the four-step process.
1. Four-step practical process: First control risks, then seize big profits
20% position for trial trades, use small money to explore direction
Don’t rush to open positions; first use 20% of the total capital to test the waters. For example, if you have 1000U, only use 200U to enter. Use "small chips" to test the market; even if you are wrong, you won't incur a large loss immediately, leaving room for future operations.
10% stop loss, total loss locked at 2%
If the trial trade goes in the wrong direction and this 20% position loses 10% (which means 200U loses 20U), stop loss immediately. A single wrong move only affects 2% of the total capital, which is completely manageable—don’t stubbornly hold on and let the losses grow bigger.
If the direction is correct, increase the position in three increments to full position
If the trial trade is profitable, gradually increase the position to magnify the gains:
・Increase position by 20% when it rises 10% (200U earns 20U);
・Increase another 20% when it rises another 10%;
・On the third increase of 10%, add the final 20% to reach full position.
Make the profitable positions heavier and fully capitalize on the favorable market.
10% pullback to take profit, securing profits is real profit
After reaching full position, set a 10% pullback take profit line. If it drops 10% from the highest point, sell all. Don’t be greedy for "a bit more gain", and don’t cling to the position to avoid a market reversal that could erode your profits. Ensure your profits are secured.
2. Key mindset: Contracts are about risk control, not gambling with your life
Many people incur losses in contracts because they treat it as a "gamble", always wanting to strike it rich with heavy positions, resulting in liquidation. But the essence of contracts is "risk control": trial trades and stop losses are about "controlling small losses", ensuring a single mistake doesn’t affect the overall situation; increasing positions and pulling back to take profits are about "magnifying big profits", allowing favorable markets to earn more money.
I have practiced this method for many years; it’s not some "magical skill", but it helps me earn steadily.
What contracts depend on is not the ability to read the market, but the discipline to execute. Cultivating the habit of "small losses controllable, big profits magnified" makes steady profit truly not difficult.
@财神极致玩家 #市场过度杠杆已被出清 #CPI数据来袭 #加密市场反弹