1. Playing contracts is like betting small to gain big; experiencing losses is very normal. However, after hitting a stop-loss, there are generally two types of people: some will frantically open new positions, while others will enter a cooling-off period. My advice is that if you encounter frequent stop-loss situations, you should calm down, temporarily stop trading, and adjust your strategy.
2. Don’t rush to succeed; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset. Don’t rush to open positions and avoid heavy betting.
3. It is important to have a good understanding of the overall trend. When it is evident from the market that there is a one-sided trend, one should follow the trend and avoid counter-trading, as this is the root of losses. Both beginners and experienced traders can have the habit of counter-trading. However, once the market trend is formed, counter-trading can lead to significant losses, so we should learn to follow the trend and patiently wait for opportunities to act.
4. You must manage your risk-reward ratio well; otherwise, it will be difficult to make money. Ensure that profits are larger than losses as much as possible, with at least a 2:1 ratio before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to blindly open positions, especially for new players who are full of passion for the market and always want to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Only earn money within your understanding; this is very important.
7. Do not hold onto losing positions; holding positions in contracts is a major taboo, especially for beginners. Make sure to set stop-losses; holding positions is the beginning of a downward spiral. Again, I remind you not to hold onto losing positions.
8. Don’t get carried away when making a profit; getting carried away will lead to losses.
I am Xiao O, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most basic role is to help everyone make money. I can help you solve confusion and trapped positions, speaking with strength. When you lose your direction and don’t know what to do, pay attention to Xiao O, who will point you in the right direction.
