If you want to trade contracts, read carefully!
1. Trading contracts is about taking small risks to gain big rewards, experiencing losses is normal. However, after hitting a stop loss, there are two types of people: some will go crazy opening new positions after a stop loss, while others will enter a period of calm.
My advice is that if you encounter frequent stop losses, 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 facing losses in trading, maintain a calm mindset. Don’t rush to open positions, and definitely don’t go all in with heavy investments.
3. It's important to recognize the big trend. When you observe a one-sided market from the charts, you should go with the trend rather than against it. Trading against the trend is the source of losses. Whether you are a novice or an expert, many have the habit of trading against the trend. However, once the market trend is established, operating against it often leads to harsh lessons from the market. Therefore, we must learn to go with the trend and patiently wait for opportunities to trade.
4. Make sure to manage your risk-reward ratio well; otherwise, it's hard to make money. Let profits be as large as possible compared to losses, and at least aim for a 2:1 ratio before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you are not an expert in contracts, you must restrain the impulse to blindly open positions, especially for novice traders who are passionate about the market and want to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Only make money within your understanding; this is very important.
7. Don’t hold positions; holding positions in contracts is a major taboo, especially for newcomers. You must set stop losses; holding positions is the beginning of a downward spiral. Again, I remind you not to hold positions.
What to do if you are stuck? When to bottom out? It's okay, you need to refer to my strategy. Let’s learn from each other and grow together. Follow Brother Yong’s rhythm to understand the reasons for failure and master the secrets of success.
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