Most brothers come in fully invested, thinking that earning 10% is enough for a wave, but the real market is very cruel. Once you bet wrong on the direction and it drops 10%, you won't even have a chance to catch your breath.
What will those who truly understand the rules do? Managing stop-losses is of utmost importance. For example, if we control the average stop-loss within three points, what does that mean? It means you have 33 opportunities to take action. Listen carefully, it's 33 times. Okay, let's be a bit harsher, if we manage to reduce stop-loss to 1.5 points, then we have 66 opportunities. Now the question arises, can you be wrong all 69 times? If you can really be wrong 67 times in a row, then you are not an ordinary person; you are a national treasure level existence. The market would have to issue you a certificate, you are the biggest counter indicator in the market, and everyone would make money by trading against you with their eyes closed!
Unfortunately, most of us don't die from the rise and fall of the market, but from ourselves. Why? Because we don't set stop losses, we stubbornly hold on, and we euphemistically say we have margin. In the entire trading market, the result of holding positions is only one: early liquidation (being eliminated by oneself). Holding on ten times is just luck. What is your mindset when you anticipate a big wave with a sense of luck?
Professional traders never rely on luck; we rely on position management and trading discipline! First, figure out how you might die (liquidate), then you will know how you can survive. Manage your position and set stop losses properly; do not go against the trend and hold positions. When opportunities arise, trade lightly, do not chase highs or sell lows. This is the entire logic; everything else is just small issues about entry points. You may not understand the technicals or K-lines, but you must understand stop losses; otherwise, don't play!
This market has no indicators. System and automation software are 100% accurate, those things look flashy and mysterious but are just auxiliary; what can truly save you, what can make you money, is whether you have a survival logic in your mind, how to survive in this market. The primary goal of survival is to not lose money in your account.
With this survival logic, you are qualified to talk about profits. Without survival logic, you can only blow up your account repeatedly. Hearing this, I think the brothers understand that playing in the contract market is not about who earns quickly, but who can survive longer. Slow is fast, and fast is slow! While others think about violently flipping their accounts, you are quietly accumulating wealth over time.
Seeing this, many brothers might say, 'Old Zhang, everyone understands these principles, this is also what you often talk about in your live broadcasts, but what if I can't control my hands?' If you really can't control your hands, then don't touch contracts, either play with small funds—losing them won't affect your quality of life and family—or just play spot trading with larger funds. Heavy position trading leads to family breakdown!
Remember this: the ones who remain at the table in this market are definitely the winners! One or two years from now, you will find that many of those who played coins with you will be much fewer. Of course, I hope you won't be eliminated by the market either!
Finally, I wish everyone a happy Mid-Autumn Festival 🎑 and family harmony!
