Contract trading, a field filled with temptation and risk, makes many people both excited and frustrated. Hello everyone, I am Liang Ge, today I will talk to you about the secrets to profit in contract trading, hoping that after reading this article, you can transition from losing money to making money. Many people find that there are more losers than winners in contract trading, but this does not mean that contract trading cannot be profitable. Today, Liang Ge will discuss how to achieve profits in contract trading by mastering some core points and strategies.
Secrets to Profit in Contract Trading: Transitioning from Losing Money to Making Money
Capital Management: Avoid heavy positions and liquidation.
Control Position Size: Never trade with a heavy position; a single trade should not exceed 5%-10% of total capital. This can reduce risk and prevent losing everything in a significant drop.
Set Stop Loss: Every trade must have a stop loss, usually set within 2%-5%. This can prevent liquidation due to unexpected market fluctuations.
Build Positions in Batches: Do not fully invest at once; enter and exit in batches to reduce the impact of market volatility.
Trading Strategy: Follow the trend and use leverage wisely.
Trend is King: In contract trading, following the market trend is very important. Do not go against the trend; trading with the trend leads to long-term profitability.
Support and Resistance: Use technical analysis to find support levels for long positions and resistance levels for short positions. This can improve the winning rate of trades.
Reasonable Leverage: The higher the leverage, the greater the risk. It is recommended to use 3-5 times leverage and not to gamble with full leverage.
News Integration: Pay attention to market news and large capital movements to avoid black swan events.
Mindset and Discipline: Control emotions and patiently wait.
Don't Be Greedy: Set profit targets, take profits when achieved, and avoid drawdowns.
Don't Be Relentless: Stop after a loss; don’t keep averaging down, as it may lead to significant losses.
Patiently Wait for Opportunities: Avoid frequent trading; patiently wait for high-probability opportunities.
Technical Analysis: Assist in determining direction.
Candlestick Patterns: Such as double bottoms, head and shoulders, trend lines, etc., assist in determining direction.
Indicator Assistance: Indicators like MACD, RSI, and moving averages can be used as trading references, but do not rely on them excessively.
Record and Review: Summarize experiences and continuously optimize strategies.
Summarize after each trade, identify reasons for profits and losses, and continuously optimize strategies. This can help avoid falling in the same place twice.
Summary:
Those who make money in contract trading generally adhere to strict risk management and trading strategies to avoid emotional trading. If you are a beginner, it is recommended to practice with low leverage and small positions, and increase your investment after gaining experience.
Remember these key points and strategies, practice and optimize slowly, and believe you can also achieve profits in contract trading!
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