Contract trading, a field full of temptation and risk, has excited and frustrated many. Hello everyone, I am Brother Heng. Today, I will share the secrets of making profits in contract trading. I hope this article helps you turn losses into gains. Many people who trade contracts find that there are more losers than winners, but this does not mean that contract trading cannot be profitable. Today, I will talk about how to achieve profits in contract trading by mastering some core points and strategies.
To live longer in trading, you must first protect your capital, then follow the trend, and lastly aim for profit. The following key strategies can assist you!
Capital management: Avoid heavy positions and liquidation.
Control your position: Never trade with a heavy position; ideally, a single trade should not exceed 5%-10% of your total capital. This can reduce risk and prevent total loss from a significant drop.
Set stop-losses: Every trade must have a stop-loss, usually set within 2%-5%. This can prevent liquidation due to unexpected volatility.
Build positions in batches: Do not enter fully at once; stagger your entries and exits to reduce the impact of market fluctuations.
Trading strategy: Follow the trend and use leverage wisely.
Trend is king: In contract trading, following the market trend is crucial. Do not go against the trend; following the trend leads to long-term profits.
Support and resistance: Use technical analysis to find support levels for buying and resistance levels for selling. This can improve the win 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 on full leverage.
Combine news: Pay attention to market news and big capital movements to avoid black swan events.
Mindset and discipline: Control emotions and wait patiently.
Do not be greedy: Set profit targets, take profits when reached, and avoid drawdowns.
Do not cling to positions: Stop if you lose, do not keep averaging down; otherwise, you may suffer significant losses.
Patiently wait for opportunities: Do not trade frequently; patiently wait for high win-rate opportunities.
Technical analysis: Assists in judging direction.
Candlestick patterns: Such as double bottoms, head and shoulders, trend lines, etc., assist in judging direction.
Indicator assistance: Indicators such as MACD, RSI, and moving averages can serve as trading references, but do not rely on them excessively.
Record and review: Summarize experiences and continuously optimize strategies.
Summarize after each trade, identify the reasons for profits and losses, and continuously optimize strategies. This can prevent 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 advisable to practice with low leverage and small positions, and increase your investment after gaining experience.
Remember these key points and strategies, practice and optimize gradually, and believe that you can also achieve profits in contract trading!