The most important thing about contracts is actually setting profit-taking and stop-loss. If you make money but don't take it, it’s all for nothing (or if you don't set a breakeven loss). Many people won’t set stop-losses against their instincts; they might know they could lose $500 but will wait until their entire capital of $10,000 is wiped out before they stop. This situation still exists.

But what you don’t realize is that after you set a stop-loss and reverse to go long, if you can’t beat it, you join it. In the end, not only do you recover the losses from the stop-loss, but your mindset improves as well. Ultimately, you might slap your thigh and say you didn’t run away.

Our strategies all include profit-taking and stop-losses; if the situation is not right, you will generally be given a chance to escape (better to lose 100 points than to hesitate in escaping). If you don’t escape when you should, your last chance is the stop-loss. If you still don’t run after the stop-loss, it might have already exploded.