If you must play contracts, remember the following points!!

If you must play contracts, remember the following points! Very important!

1. Playing contracts is about betting small to gain big, experiencing losses is normal, but after encountering a stop loss, there are two groups of people: some people will madly open positions after a stop loss, while others will directly enter a cooling-off period.

My advice is that if you frequently hit stop losses, you should calm down, temporarily stop trading, and adjust your strategy.

2. Do not rush for success; trading is not a means to get rich overnight. When facing losses in trading, maintain a calm mindset, do not rush to open positions, and definitely do not go all in.

3. It is important to understand the overall trend. When you can see a one-sided market from the charts, you should follow the trend and not trade against it. Trading against the trend is the root of losses. Whether you are a novice or an experienced trader, there is a habit of trading against the trend. However, once the market trend is established, trading against it can often result in severe losses, so we must learn to go with the trend and patiently wait for opportunities to act.

4. The risk-reward ratio must be well managed; otherwise, it will be hard to make money. Ensure that profits are greater than losses as much as possible, and at least achieve a ratio of 2:1 before considering opening a position.

5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to open positions blindly, especially for novice players who are full of passion for the market and always want to seize every opportunity. However, most so-called opportunities will result in losses.

6. Only earn money within your understanding; this is very important.

7. Do not hold positions; holding positions in contracts is a major taboo, especially for newcomers. You must ensure proper stop loss; holding positions is the beginning of a downward spiral. Again, I remind you not to hold positions.

8. Do not get carried away when profitable; being carried away will inevitably lead to losses.