How to trade contracts?
Firstly, contracts are like gambling! There is no technical aspect; if you can't manipulate the market in front of capital, you are just a victim! All contract traders* who trade short-term either have large funds and operate with low leverage*, or they have small funds and play with high leverage. Based on data from various platforms and the volatility leading to liquidation, the vast majority have small funds and engage in high-leverage operations. Most people want to achieve big profits with small investments.
Therefore, here are some practical insights for short-term contract traders using high leverage.
1. You can only trade contracts in waves; if you get stuck in long-term positions, you won't be able to handle the mentality and will ultimately cut losses at the edge of liquidation because you don't have enough margin*.
2. Never be greedy in short-term trading; even if your trend is correct, insufficient margin will cause the price fluctuations to make you collapse or force you to cut losses. Aim for just a 5% profit in your trades.
3. If you can consistently guarantee a 5% profit on each trade, you can do nothing else.
4. If you earn 5% daily, 150% monthly, time + compound interest = enormous wealth. 5. Learn to stay in cash*, waiting for opportunities, rather than getting stuck and waiting for a reversal.
6. Think more, do you spend more time in empty positions or being stuck?
