Contract Survival Rules: Stability First, Slow is Fast
Contract trading may seem complex, but at its core, it is merely leveraging margin to control positions. However, beneath this simple facade lie countless lessons bought with hard-earned money. Leverage is a double-edged sword; if used well, it can enhance gains, but if used poorly, it can lead to one's own demise.
Three Iron Rules: A Shield for Beginners
Leverage should be restrained: 2-5 times is sufficient. While 20 times leverage may seem tempting, it is essentially no different from gambling. A 10% increase can indeed double your investment, but a 5% decrease could wipe you out. Stop-loss must be decisive: set a 5% stop-loss level in advance and do not wait for manual intervention. The market changes rapidly; when critical moments arrive, human nature often prevents decisive action. Take profits in batches: once the expected profit is reached, close half of the position and set a stop-loss at breakeven for the remainder. This way, you lock in profits while keeping the possibility of further gains.
Core Mindset: Treat Contracts Like Spot Trading
True experts never treat contracts as gambling tools. They:
Strictly control position sizes, never exceeding 30% in a single trade; use small positions to test the waters, gradually increasing their positions as profits accumulate, and decisively cutting losses when losing.
Survival Secret: Admit Defeat Quickly
Contracts amplify not only profits but also human weaknesses:
Greed: Holding on when prices rise, always wanting to earn more; Luck: Holding on when prices fall, fantasizing about a rebound; Fear: Hesitating when it's time to cut losses.
Remember, candlestick charts have no emotions. A second of hesitation can turn floating losses into a complete wipeout. In this market, those who last are the rational traders who can:
Control their hands, resist temptation, and calculate risks.
Those who shout "Get rich with contracts" every day are either lucky newcomers or scythes waiting to harvest you. True veterans understand: in this market, stability is more important than anything else. Slow is fast, less is more.
Once, I stumbled alone in the dark, now the light is in my hands.