This is the power

1. My Contract Trading Strategy: 4 Iron Rules to Control Risks Before Talking About Profits
1. Fixed Principal, Locking in Risks
I specifically use one account for trading contracts, and the principal is always fixed (for example, 3000U), and I never add more. The most I can lose is this 3000U, but if I hit the market right, I can earn tens of thousands of U—first calculate the 'worst-case scenario' so that I won't panic when trading.
2. Start Small, Earn a Positive Mindset
The first trade is always kept very light, just a few dollars or around ten dollars will do. As Livermore said, 'You have to earn at the start,' even if it's a small profit, it can stabilize the mindset and avoid losing rhythm due to heavy losses right at the beginning.
3. Add to Profits, Stay Still on Losses
Only when I have made money from the initial principal and see a clear trend, do I use the 'profits' to increase the position; I never add when I'm at a loss, and I definitely do not average down when losing. The core principle is: protect the principal and use profits to seek greater returns, even if I lose, I won’t feel heartbroken.
4. Flexible Stop-Loss, Protecting the Principal
I won't set a fixed stop-loss point; I will adjust it based on real-time market conditions, but the bottom line is 'not to allow significant losses on the principal.' For example, if the market fluctuates greatly, I will widen the stop-loss; if the trend is wrong, I will cut it immediately. With a stable mindset, I won't be scared away by the market.