If you absolutely must trade contracts, make sure to adhere to these bottom lines; they’re more effective than reading 100 articles on techniques.
1. Contracts are a game of 'small bets for big returns'; stop-loss is the norm, don't treat a single loss as the end of the world. But after a stop-loss, your mindset is tested—some rush to 'recover losses' and end up losing even more; others immediately stop and review, enabling them to brake in time. Remember: if you have consecutive stop-losses over 2 times, you must shut down for the day; don't take your frustrations out on the market.
2. Don't believe in the myth of 'doubling your money in three days'; contracts earn money through steady streams. If you just lost a trade and want to go all-in to recover? You're likely to face liquidation. In trading, being 'eager for quick success' is the worst; it's like running a red light—sometimes you get lucky and nothing happens, but over the long term, something serious will definitely happen. Be steady; even if you only earn 3% a day, accumulating that is better than aimlessly messing around.
3. If you don't understand the trend, don't act; going with the trend is more important than anything else. If the market is clearly in a one-sided rise, don't stubbornly short to 'guess the top'; if it’s obviously falling, don’t try to catch the bottom to 'pick up a bargain'—this isn't confidence; it's a confrontation with the market. Once a trend forms, it's like a flood rushing down; going against the trend is like standing on the crest of a wave trying to hold up a log; being flipped over is only a matter of time. Wait until the signal is clear before entering; it’s not embarrassing.
4. Calculate your profit and loss ratio before placing an order; it's a lifesaving math problem. If a trade looks like it can earn a maximum of 100 USDT but could lose 200 USDT, no matter how tempting, don't touch it. At the very least, it must reach a ratio of 'earning 2 while accepting a loss of 1' to be worth taking. Don’t think 'what if I make money'; in contracts, the probability of 'what if' often leans towards losses.
5. Newbies fail by being 'too diligent', while veterans win by 'knowing how to be lazy'. If the market moves a bit, you want to place a trade, making seven or eight trades a day may seem like seizing opportunities, but most of the time you're just paying fees to the exchange. Remember: 90% of market fluctuations are 'noise'; the opportunity to make big money might only come once or twice a week. Resist the urge to trade; that’s more important than anything.
6. Only earn money you understand; don’t chase after markets you don’t comprehend, no matter how lively they seem. Some people make money with MACD, others with trend lines; there's no need to envy others for catching a limit-up—it's within their understanding, and if yours isn't there yet, blindly following them will only lead to losses. Mastering familiar patterns to perfection is far more beneficial.
7. Holding onto a position is the fuse for liquidation, especially for newbies; never get 'attached' to a trade. Always thinking 'if I wait a little longer, I can break even' can lead you from a 5% loss to a 50% loss, ultimately being forcibly liquidated by the system. A stop-loss line is not just decoration; it's your exit strategy. Once it hits, cut it; don't hesitate.
8. Don't get carried away when making a profit; getting carried away makes it easy to fall into pitfalls. Just because you've made a few trades doesn't mean you're a 'master'; starting to increase your position size, randomly changing strategies, or even staying up all night to watch the market often leads to a slap from the market. When you make money, you must stick to the discipline, because the moment you get 'carried away' is the beginning of your losses.
Trading contracts is not about technique, but about mindset and discipline. Review these 8 points before opening a position each day; they can help you avoid 80% of pitfalls.
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