This article systematically summarizes the risk control and discipline system of contract trading, with the core focus on managing risks through strict discipline. Key points include: establishing a three-tier risk control (macro, pre-entry, post-entry), setting clear stop-loss limits and position standards (e.g., single loss ≤10%), adhering to trend trading while avoiding emotional operations. It also emphasizes fund isolation (prohibiting leverage/living security funds), reducing frequent trading, avoiding unfamiliar products, and maintaining execution through continuous learning and net value monitoring to survive in the market.
1. Three-tier system based on risk control:
1. Macroeconomic Discipline: Mandatory rest mechanism (suspend trading after consecutive losses), limit average daily trading frequency (prevent overtrading).
2. Discipline Before Entry: Trend verification mechanism (requires multi-cycle K-line resonance), preset standards for positions (single variety not exceeding 1/10 of total capital).1
3. Discipline After Entry: Standardized stop loss (initial 3-5%), prohibit changing plans during trading (eliminate emotional trading).
2. Selected Trading Discipline
1. Risk Limit: Single loss ≤ 10% of principal, mandatory stop loss triggers exit.
2. Trend Priority: Do not hold positions before breaking resistance levels, prohibit adding positions in a downward trend.
3. Position Discipline: No early closing before stop loss/profit taking is triggered, avoid profit retracement exceeding 20%.
4. Fund Isolation: Prohibit trading with leverage funds/living security funds, principles of investing with spare money.
5. Signal Verification: At least 3 technical indicators or 2 cycle K-line resonance are required to confirm the trend.
3. Risk Control Details
1. Stop Loss Techniques: Exit immediately upon first loss, adjust stop loss to the cost line after profit.
2. Position Progression: Pyramid increase after breaking key levels, total position per day ≤ 30%.
3. Fund Monitoring: Weekly calculation of net value fluctuations, mandatory rest for 1 week if drawdown exceeds 15%.
The core of circle contract trading discipline lies in risk control, trend following, and strict execution. Here are the key points:
4. Stop Loss and Position Management:
1. Avoid immediately trying to recover after each stop loss; if consecutive stop losses occur 3 times, suspend trading.
2. Enter in batches, prohibit all-in; manage principal and profits separately to avoid emotional trading.
Run fast when losing, take part of the profit when winning ("Be bold when profitable, let the remaining part go at the original price").
3. Trends and Trading Strategies:
Only trade in the main trend, choose breakout points, pullback points, or rebound points to build positions.
4. Do not guess tops and bottoms, wait and see when unable to understand the market conditions 2.
Profitable positions can be increased in a pyramid style, but must be maintained until the trend reverses.
5. Psychological and Behavioral Discipline:
1. Avoid gambling nature, contracts are not casinos; high leverage can easily lead to liquidation, such as a 10% fluctuation under 10x leverage means zero.
2. Reduce frequent trading, as transaction fees may erode profits (e.g., losing money after 20 trades in one day).
Beware of platform traps (e.g., spikes, slippage), choose reliable exchanges.
3. Cognition and Learning: Do not touch currencies outside of cognition (e.g., risks of running away after altcoins surge).
4. First master the basics of blockchain (e.g., differences between Bitcoin and Ethereum), then practice small-scale regular investment.
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