Contract Survival Manual: 6 Life-Saving Rules🔥
1. Take Profit and Stop Loss: Life and Death Switch
1. Taking profit goes against human nature: Don't be greedy for the last 1%, securing 90% of the principal is more important
2. Be decisive with stop losses: If a wrong order exceeds 2% of the principal, cut it immediately; those who face liquidation have all believed in "the next second reversal"
2. High-Frequency Trading: Fee Trap
1. Fatal Data: With high leverage, each order initially loses 2%, 10 orders need 7 wins to break even
2. Practical Advice: No more than 3 orders per day, only capture clear trends within 1 hour
3. Waiting with No Position: A Must for Experts
1. Trading Truth: 70% of the time is ineffective fluctuations, only 10% are clear trends
2. Calculate Costs: If you lose 5000 on a wrong order, you need to earn more to break even
4. Light Position Testing: The Key to Compounding
1. Compounding Model: 100 principal with 10x leverage, achieving 45% monthly return is very easy
2. Taboo: Betting everything with 100x leverage on 100 principal, 99% won't survive 3 days
5. Heavy Position Betting: Liquidation Accelerator
1. Bloodbath: Heavy positions facing bad news, a 10% drop can lead to immediate liquidation
2. Correct Approach: Each position ≤ 10% of the principal, for 100,000, use at most 10,000 to open a position
6. Unity of Knowledge and Action: The Ultimate Battle Against Human Nature
🤕 Human Nature Trap: Plan for stop loss and take profit, but always hesitate at the moment
📋 Execution Plan:
1. Write down the entry points before opening a position
2. Act within 3 minutes after triggering
3. Weekly review of violations with penalties for non-compliance
Final Reminder**: Contracts are about earning probabilistic money with discipline; those who can execute these 6 rules have already surpassed 90% of retail traders. Those who survive have ingrained "stop loss" into their DNA.
