Contract trading seems simple, but it's not that easy in practice. Many people lose money not because the market is bad, but because they haven't mastered the fundamentals.
I have seen many people act impulsively, making a hasty large order, resulting in their account losing half its value in an instant. In fact, making money in contracts has never relied on luck but rather on attention to detail.
Today, I won't discuss grand theories; I will share 5 habits that I have personally tested and found effective. By following them, contract trading will be more stable, and the risk of liquidation will be lower.
1. Do not blindly chase highs and sell lows
- The market changes rapidly, and many people impulsively follow when they see price fluctuations.
- My rule is that unless there is a confirmed signal, I never place an order.
- It is better to miss a wave than to lose capital by chasing highs and selling lows.
- There are always opportunities in contracts, but capital is limited; being cautious ensures longevity.
2. Control position size and gradually build up
- No matter how optimistic I am about a position, the initial order should use at most 20%-30% of total funds.
- Only consider increasing the position in batches when the trend is clear, and each increase should have a rhythm.
- Being impatient with position increases will only heighten risk; contracts are not about gambling for profit.
3. Set stop-loss for every order
- This point is crucial and often overlooked by many.
- I once lost almost all my funds because I didn’t set a stop-loss.
- Now, I set stop-loss and take-profit levels in advance for every order I enter.
- Do not give yourself an excuse to "wait and see"; execution determines ultimate success or failure.
4. Control the number of trades and stay calm
- Trading too frequently can intensify emotional fluctuations.
- Especially after losing a few trades, rushing to recover losses makes it easier to dig deeper.
- I limit myself to a maximum of three trades a day and stop after that to maintain a peaceful mindset.
- It's not about seeking thrills but about steady profits.
5. Persist with reviews to identify mistakes
- Saying "I'll be careful next time" after a loss is useless; what really works is reviewing trades.
- After each losing trade, I take screenshots and record my thought process and mistakes at that time.
- After a few days of persistence, you will notice patterns and blind spots that cause losses, helping to avoid repeating mistakes.
These habits are derived from my real-money trial and error.
A set of right methods + stable execution + a good team for pacing is far more effective than being busy alone! Those who want to turn things around will find me without needing to say it.
