To play contracts, keep the following points in mind! It's crucial!
Learn these points, and it won't be a dream to easily double your money!
1. Playing contracts is about betting small for big returns; experiencing losses is normal. However, after hitting stop-loss, there are two types of people: some will frantically open orders after a stop-loss, while others will enter a period of calm. My advice is that if you encounter frequent stop-loss situations, you should calm down, temporarily stop trading, and adjust your strategy.
2. Don’t rush to succeed; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset, don’t rush to open orders, and definitely don’t go all in.
3. It’s important to recognize major trends. When you see a one-sided market from the chart, you should go with the trend and not trade against it, as going against the trend is the root of losses. Whether you are a novice or an experienced trader, there is a tendency to trade against the trend. However, once the market trend is established, operating against it will often lead to severe lessons from the market, so we must learn to go with the trend and patiently wait for opportunities before acting.
4. You must maintain a good risk-reward ratio; otherwise, it’s difficult to make money. Ensure that profits are as large as possible compared to losses, and at least achieve a 2:1 ratio for your trades before considering opening orders.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to open orders blindly, especially as a novice player. Being filled with enthusiasm for the market can lead to a desire to seize every opportunity, but most so-called opportunities will lead to losses. 6. Only make money within your understanding; this is very important.
7. Do not hold onto losing positions; holding onto contracts is a major taboo, especially for newcomers. You must set stop-losses; holding onto losing positions is the beginning of a downward spiral. Again, be reminded not to hold onto positions.
8. Don’t get carried away when you’re in profit; being too euphoric will lead to losses.