Maybe what you should quit is not the contracts, but the gambling addiction.
Contracts are just tools — you can use them to gamble, going all in with 125x leverage, fantasizing 'this time my luck is good, a bicycle turns into a motorcycle, a motorcycle turns into a Lamborghini, and a Lamborghini turns back into a bicycle'; or you can calm down and learn trading, learning risk management. For example, using 5% or 2% of the account, take at least half a year’s worth of data to conduct 100 backtests (Backtesting) on TradingView to verify if the strategy is profitable. Otherwise, money earned from gambling will eventually be given back to the market.
I have previously engaged in cross-border e-commerce, Facebook ads, Google ads, and affiliate marketing. It wasn't until I encountered trading that I understood: this is the true business model where you can make money independently. Unlike some projects, where the cost of trial and error is high, and even if you make money, it's hard to replicate — it all depends on platform policies and luck. Learning to trade can be done step by step: from backtesting to forward testing, then practicing with a small account, and finally transitioning to a larger account.
I know a group of foreign traders, some of whom became skilled before even finishing high school, and it’s a natural progression for them to become full-time traders. However, most in the group trade forex, while I mainly focus on cryptocurrency; the strategies are actually quite similar, and some methods work across stocks, futures, and forex.
Treating trading as a skill to learn might open the door to a new world. Whether it's cryptocurrency contracts or forex futures, to achieve stable profits, you probably need to do three things:
First, master one strategy. Start by choosing a field, such as focusing on cryptocurrency contracts. In the beginning, you can try different strategies to find what suits you. For example, if someone can only spend one or two hours a day watching the market, then a day trading strategy that requires long hours of watching isn't suitable; swing trading would be more appropriate.
After selecting a good strategy, use free resources on YouTube to learn, then take at least a year’s worth of data to conduct over 200 backtests. If profitable, then validate it in live trading. Don’t go all in without understanding — newbies often take the biggest risks and go all in at a moment's notice. If it’s a swing trading strategy (like looking at the 4-hour chart), you might not need to test too many trades to get reliable data.
Second, risk management. This step absolutely cannot be skipped. I don’t know if those who go all in with 125x leverage have learned about risk management. No trader can have a 100% win rate; as long as you earn more over the long term than you lose, that’s enough. Note that it’s 'earn more', not 'win more'. For example, a risk-reward ratio (RR) strategy of 1:3 can be profitable with a win rate of 33% — losing two trades and winning one, but winning three times what you lost. So, discussing win rate without considering RR is just nonsense.
When I first started trading, I encountered strategies with over 90% win rates, but losing just once could cost 15% of the account, requiring a win rate of over 95% to achieve stable profits. Some don’t set stop losses; never fall into the trap of 'small wins and big losses' — unless your backtesting data supports not setting stop losses. The traders I know all set stop losses and clearly understand the maximum they can lose on each trade.
Additionally, you need to determine the risk percentage for each trade based on your win rate (for example, a conservative 2%, an aggressive 5%), and set rules to prevent emotional trading: for example, stop after losing two trades in a row, or call it a day after a 10% loss. These are all part of risk management.
Third, mindset. Only after the first two points are done can we talk about mindset. There’s no point in discussing mindset without a profitable backtesting strategy or risk management. Only when the first two points are in place is mindset truly critical. For instance, if someone performs well in backtesting but fails in live trading — it's likely a mindset issue: fearing losses leads to premature exits, causing winning trades to fail to meet expected risk-reward ratios (RR); or always wanting to 'get rich quick', thinking they can acquire a skill to achieve financial freedom in just a month or two — is that reasonable?
Trading is a form of cultivation, just like life. Don’t pay attention to how much others earn today or how many times their accounts have multiplied; your only opponent is yourself. I am also learning and progressing on my trading journey, and I hope everyone can achieve their goals.
I am Wenhua, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most basic requirement is to help everyone make money. I will help you resolve confusion and stuck positions, speaking with strength. When you feel lost and don’t know what to do, follow me, and Wenhua will point you in the right direction.
