If you want to trade contracts, read this carefully!

1. Trading contracts is about betting small to win big; experiencing losses is normal. However, after hitting a stop-loss, two types of people emerge: some will frantically open new positions, while others will enter a cooling-off period.

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 for success; trading is not a means to get rich overnight. When facing losses during trading, maintain a calm mindset. Do not rush to open positions, and definitely do not go all-in.

3. It is important to recognize the overall trend. When you observe a one-sided market, you should trade in the direction of the trend and not against it, as trading against the trend is the root of losses. Whether you are a beginner or an experienced trader, there is a tendency to trade against the trend. However, once a market trend is established, counter-trend operations can often lead to severe losses, so we must learn to trade with the trend and patiently wait for opportunities to act.

4. It is essential to maintain a proper risk-reward ratio; otherwise, it will be difficult to make money. Ensure that your profits are larger than your losses, with at least 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 open positions blindly, especially for novice players who are filled with enthusiasm for the market and want to seize every opportunity. However, most of the so-called opportunities will lead to losses.

6. Only earn 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 ensure proper stop-losses; holding onto positions is the beginning of a downward spiral. Again, do not hold onto positions.

8. When you are in profit, do not get carried away; getting carried away will surely lead to losses.