1. Don't get overconfident after a stop loss
Engaging in contracts is inherently about risking a little for a lot; losing trades are very common, but the most fearful thing is losing your mindset after a stop loss - some people frantically add positions trying to recover losses, while others just lie flat and give up. Remember: consecutive stop losses are the market reminding you that your rhythm is off; at this point, the best thing to do is pause trading, clarify your strategy, and then re-enter; don't gamble with real money out of spite.
2. Don't believe in getting rich overnight
Trading is not about rolling the dice in a casino; the more you think about making a big bet to turn things around, the more likely you are to be harvested by the market. If you lose money, stay calm for 3 minutes and ask yourself: Is this trade really worth opening? The impulse to heavily pursue a position is often a prelude to a margin call.
3. The trend is your true father
When the market is moving in one direction, never act as a "counter-trender"! No matter how suitable you think the price level is, once a trend is formed, going against it is tantamount to going against money. Experienced traders often trip up here: "I think it should reverse now" - the market will only slap you in the face and tell you: it thinks it should continue to rise/fall.
4. The risk-reward ratio should be at least 2:1
Before opening a position, calculate the figures: how much can you earn, how much can you lose? If the stop loss is 500 and the take profit is only 300, don't take such a trade even if it's given to you for free. Remember: the profit margin must be at least twice the loss for it to be worth opening a position; otherwise, earning ten times won't make up for one loss.
5. Don't become a trading machine
The most common mistake beginners make is being "itchy-fingered"; seeing volatility makes them want to open a position. But 90% of market fluctuations are traps; truly profitable opportunities require waiting. Ask yourself every day: Is this trade part of my plan, or am I just gambling? The latter will inevitably lead to losses.
6. Earn the money you understand
No matter how fancy the contracts are, only trade in markets you can understand. If someone makes money by shorting a currency, you might end up buying in at the wrong time; if someone says "this coin is going to skyrocket" and you haven't even researched its fundamentals, how can you expect to make money? Money outside your understanding will just be lost back due to your lack of knowledge.
7. Holding onto a position is like burying a landmine
"Wait a little longer, maybe I can break even" - this is the most toxic advice in contracts. In spot trading, you can wait for a rebound, but holding a position in contracts is like gambling your life with margin; a big bullish or bearish candle can wipe you out completely. If your stop loss is wrong, you might only lose a little money, but holding a position correctly is just luck, and if you're wrong, it's a point of no return.
8. Don't let profits go to your head; if you do, you'll surely lose.
If you have made several consecutive profits, don't think of yourself as the "chosen one"; the market is specialized in dealing with various forms of arrogance. If you make money, first withdraw your principal, then play with the rest; treat every trade as if it’s your first one. When feeling inflated, think: the last person who faced a margin call probably thought the same way.
(Lastly, let me add: contracts are about mindset and discipline, not about gambling. Those who truly understand the market first think about how not to lose money, then how to make money.)
