Contract Trading 'Survival' Guide: Remembering the Essentials to Avoid Pitfalls
If you want to venture into the high-risk 'battlefield' of contracts, it's imperative that you engrave the following key points into your very bones, as they are of utmost importance!
1. Don't Panic After a Stop-Loss: Trading contracts is essentially about risking a little to gain a lot, and experiencing losses is completely normal. After a stop-loss, some may rush to open new positions in a frenzy, hoping to recover immediately; others may wisely pause and enter a cooling-off period. Take this advice: if you find yourself frequently stopping out, do not let it get to you; stop immediately, clear your mind, review your strategy for flaws, and hasty trades will only deepen your losses.
2. Abandon the Pursuit of Quick Gains: Trading is not a means to earn profit overnight. Getting anxious and going all in after a loss is a common mistake for beginners. Remember, maintaining a calm mindset is key; wealth accumulation relies on steady progress—hasty actions won't yield favorable results.
3. Follow the Major Trend: When a one-sided market trend emerges, going with the flow is a fundamental rule! Both beginners and veterans can easily fall into the trap of trading against the trend, always holding onto a glimmer of hope to 'catch the bottom or hit the peak,' only to be severely punished by the market. Understand the market movement, patiently wait for opportunities, and align with the larger trend to hit the profit rhythm.
4. Understand the Risk-Reward Ratio: To profit in contracts, the risk-reward ratio is a core 'checkpoint.' If you don't get this right, profit becomes an illusion. Ensure at least a 2:1 risk-reward ratio before opening a position, allowing the profit potential to securely cover the risk of loss—don't engage in losing trades.
If you want to venture into the high-risk 'battlefield' of contracts, it's imperative that you engrave the following key points into your very bones, as they are of utmost importance!
1. Don't Panic After a Stop-Loss: Trading contracts is essentially about risking a little to gain a lot, and experiencing losses is completely normal. After a stop-loss, some may rush to open new positions in a frenzy, hoping to recover immediately; others may wisely pause and enter a cooling-off period. Take this advice: if you find yourself frequently stopping out, do not let it get to you; stop immediately, clear your mind, review your strategy for flaws, and hasty trades will only deepen your losses.
2. Abandon the Pursuit of Quick Gains: Trading is not a means to earn profit overnight. Getting anxious and going all in after a loss is a common mistake for beginners. Remember, maintaining a calm mindset is key; wealth accumulation relies on steady progress—hasty actions won't yield favorable results.
3. Follow the Major Trend: When a one-sided market trend emerges, going with the flow is a fundamental rule! Both beginners and veterans can easily fall into the trap of trading against the trend, always holding onto a glimmer of hope to 'catch the bottom or hit the peak,' only to be severely punished by the market. Understand the market movement, patiently wait for opportunities, and align with the larger trend to hit the profit rhythm.
4. Understand the Risk-Reward Ratio: To profit in contracts, the risk-reward ratio is a core 'checkpoint.' If you don't get this right, profit becomes an illusion. Ensure at least a 2:1 risk-reward ratio before opening a position, allowing the profit potential to securely cover the risk of loss—don't engage in losing trades.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
BNB
766.74
+1.57%
