Contract Survival Manual

Remember them, and you will walk more steadily, avoiding pitfalls.

In contract trading, a stop-loss is like your lifeline. Once triggered, don’t rush to open a new position to try to earn back the money. At this point, you should stop and think about where your trading strategy went wrong.

Don’t think about getting rich quickly. When encountering losses, do not over-leverage or blindly open new positions. This kind of short-sighted mentality is often a big taboo for beginners. True wealth requires time to accumulate and patience to wait.

When the market shows a one-sided trend, go with the trend. Don’t think about going against it by trying to catch the bottom or chase the peak, as that will only lead to failure. Understand the market trends, patiently wait for opportunities, and follow the major trend to earn steadily.

The risk-reward ratio is key in trading. Before opening a position, you need to calculate whether this trade is worthwhile. The risk-reward ratio should be at least 2:1. Don’t ruin your trading plan because of momentary impulse or greed.

Be particularly cautious not to be dazzled by the temptation of frequent trading. As soon as the market moves slightly, you rush to open positions, thinking there is money everywhere, while in reality, there are pitfalls everywhere. If you haven’t honed your skills yet, hold back your hand. Think carefully about whether each trade is worth making.

There is an iron law in trading: only earn money within your understanding. Don’t take risks that exceed your capabilities, as that is no different from a blind person trying to feel an elephant, with too much risk. Learn more, accumulate experience, and make money in fields you are familiar with, as that is the safest approach.

Holding onto losing positions is a major taboo in trading. Once the market reverses, if you still hold onto illusions and stubbornly refuse to let go, it will only increase your losses. Timely stop-losses are the best way to protect yourself.

Don’t get carried away when you make money; pride goes before a fall, as the old saying goes. When making profits, you must remain calm and steady, strictly adhere to trading discipline, and operate according to your strategy. Only then can you stabilize your profits.

We must closely monitor market signals and seize new entry opportunities in the market. If you feel confused and helpless, pay attention to me! Choice is greater than effort!

With rich experience in the crypto circle, I am happy to share insights. Feel free to click my avatar to consult me.