Contract trading, a field full of temptation and risk, excites and frustrates many people. Hello everyone, I am Lao Bo, and today I will talk to you about the secrets of making profits in contract trading. I hope this article can help you turn losses into profits. 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 of Making Profits in Contract Trading: Transitioning from Losses to Profits
Capital Management: Avoid heavy positions and liquidation.
Control Position Size: Never trade with heavy positions; ideally, a single trade should not exceed 5%-10% of total capital. This can reduce risk and prevent total loss from a significant drop.
Set Stop Loss: Every trade must have a stop loss, usually set within 2%-5%. This can help avoid liquidation due to an unexpected fluctuation.
Build Positions in Batches: Do not go all in at once; enter and exit in batches to reduce the impact of market fluctuations.
Trading Strategy: Follow the trend and use leverage wisely.
Trend is King: In contract trading, it’s very important to follow the market's major trends. Do not go against the trend; following the trend can lead to long-term profits.
Support and Resistance: Use technical analysis to find support levels for long positions and resistance levels for short positions. This can increase 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 with full leverage.
Combine News: 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 and take profits upon reaching them to avoid drawdowns.
Don't Be Attached to Positions: Stop if you lose, and don’t keep averaging down; otherwise, you might incur significant losses.
Patiently Wait for Opportunities: Avoid frequent trading and patiently wait for high win rate opportunities.
Technical Analysis: Assist in judging direction.
Candlestick Patterns: Such as double bottoms, head and shoulders, trend lines, etc., assist in judging direction.
Indicator Assistance: Indicators like 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 to identify the reasons for profits and losses, and continuously optimize strategies. This can help avoid falling in the same place twice.
Those who make money in contract trading generally adhere to strict risk management and trading strategies, avoiding 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 points and strategies, practice and optimize gradually, and believe you can also achieve profits in contract trading!
Lao Bo only does real trading; the team still has spots available.
