From 200,000 U to zero, 90% of people don't know the truth about contract explosion!
The root cause of explosion in contract trading is often not lack of technology, but human weakness. Many people have mastered a lot of professional knowledge, but still can't escape the fate of loss.
The lack of execution is the primary problem. Just like losing weight requires overcoming appetite and inertia, trading also requires overcoming fear and greed. The market will not reward smart people, but only those who strictly abide by discipline. When prices fall, they dare not buy, and when they rise, they are unwilling to sell. This mentality makes 90% of people lose money in the end.
The temptation of short-term trading is another trap. People with small funds often mistakenly believe that frequent operations can quickly accumulate wealth, but ignore the transaction costs and losses caused by emotional fluctuations.
The misunderstanding of leverage is equally fatal. Too much attention is paid to the explosion point, but the essence of position management is ignored. Real risk control should start from the maximum tolerable loss of a single transaction, rather than hoping that the market will not fluctuate extremely. History has proved that those leverage multiples that think they are safe are vulnerable to extreme market conditions such as 312 and 519.
To survive in the contract market for a long time, you need to establish a complete trading system. This includes clear entry and exit rules, strict risk control mechanisms, and continuous emotional management capabilities. Remember that the market is always testing your discipline, not your IQ.
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