Since you want to trade contracts, you must keep the following points in mind! They are crucial!
1. Trading contracts is about risking a little for the chance to gain a lot; experiencing losses is normal. However, after a stop loss, there are two types of people: some will frantically open positions after a stop loss, 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 to achieve results; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset, do not rush to open positions, and definitely do not over-invest.
3. It's important to pay attention to the larger trend. When you see a one-sided market from the charts, you should go with the trend and not trade against it. Trading against the trend is the source of losses. Whether you are a beginner or an experienced trader, there is a habit of trading against the trend. However, once the market trend is established, operating against it will often lead to severe lessons from the market, so we must learn to go with the trend and patiently wait for opportunities to trade.
4. You must manage your risk-reward ratio well; otherwise, it will be hard to make money. Ensure that your profits are as large as possible compared to your losses, and at least aim for 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 blindly open positions, especially as a beginner. New players are often full of enthusiasm for the market and want to seize every opportunity, but most 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 beginners. You must set stop losses properly, as holding onto positions is the beginning of a downward spiral. Again, I remind you not to hold onto positions.
8. Don't get cocky when you are making profits; arrogance will lead to losses.
