If you must trade contracts, remember the following points!!

If you must trade contracts, remember the following points! They are crucial!

1. Trading contracts is about risking a small amount for the chance of a large return. It's normal to incur losses, but after hitting a stop loss, there are two types of people: some will go on a trading spree after a stop loss, while others will enter a cooling-off period. My advice is that if you frequently hit stop losses, take a moment to calm down, temporarily stop trading, and adjust your strategy.

2. Don't rush for quick success; trading is not a means to get rich overnight. When facing losses in trading, maintain a calm mindset, avoid rushing into trades, and definitely do not over-leverage.

3. It's important to pay attention to the overall trend. When you see a one-sided market from the chart, you should go with the trend and avoid trading against it. Trading against the trend is the root of losses. Whether you're a novice or an experienced trader, many have the habit of trading against the trend. However, once the market trend is established, counter-trend trading often leads to severe consequences, so we must learn to go with the trend and patiently wait for opportunities to trade.

4. Always manage your risk-reward ratio; otherwise, it will be difficult to make money. Ensure that your profits are as large as possible compared to your losses, with a minimum ratio of 2:1 before considering a trade.

5. Frequent trading is a major taboo in contract trading. If you are not an expert trader, you must restrain the impulse to trade blindly, especially for novice players who are full of enthusiasm for the market and want to seize every opportunity. However, most so-called opportunities will result in losses.

6. Only earn what you understand; this is very important.

7. Do not hold onto losing trades; holding onto contracts is a major taboo, especially for beginners. Always set a stop loss; holding onto losing trades is the beginning of a downward spiral. Again, I remind you not to hold onto losing trades.

8. Don't get carried away when you're making profits; getting carried away will lead to losses.