1. Core Mindset: Make 'survival' the primary goal.
1. Respect the market, give up fantasies of sudden wealth.
The contract market is essentially a zero-sum game; short-term profits may be due to luck, but long-term survival relies on rationality. Never consider yourself the 'chosen one'; the market is always more complex than your understanding. A get-rich-quick mentality can lead to over-leveraging and frequent trading, ultimately being consumed by volatility.
2. Accepting losses as an inevitable cost.
Losses are part of trading; no one can achieve a 100% win rate. The key is to control losses within a bearable range through stop-loss rules, avoiding catastrophic impacts from a single mistake. Treat losses as tuition rather than shame.
2. Emotional Management: Combat human weaknesses.
1. Balance between fear and greed.
Fear: Hesitant to enter when the market is falling, afraid of missing out (FOMO) during a rebound, easily chasing highs and cutting losses.
Greed: Unwilling to take profits when in the green, always wanting to 'eat the whole fish', ultimately turning a profit into a loss.
Countermeasure: Replace emotions with rules, establish a trading plan in advance (when to enter, stop loss, take profit), and execute like a machine without emotion.
2. Refuse 'revenge trading'.
Rushing to recover losses after a setback is the trigger for most people’s liquidation. At this time, you need to force a pause in trading and review the mistakes, rather than 'gambling back' with a larger position.
3. Avoid Overconfidence
Continuous profits can easily lead to overestimating one's abilities and ignoring risks. Remember: the market can reverse at any time; past victories do not guarantee future success.
3. Strategy Discipline: Use systems to combat uncertainty.
1. Position management is paramount.
The position for a single trade should not exceed 2%-5% of the capital (adjust according to risk tolerance).
Never add to a 'dead holding' position; decisively cut losses when unrealized losses exceed your plan.
Leverage is a double-edged sword; beginners are advised to start with low leverage (such as 3-5 times).
2. Only trade in markets you understand.
Market opportunities are infinite, but the possibilities that belong to you may only be 1-2 patterns (such as trend breakouts, pullback reversals). Focus on the patterns you are good at, and abandon the 'noise' in complex fluctuations.
3. Record and review.
- Daily record trading logs: Analyze entry and exit logic, emotional fluctuations, and execution deviations.
- Regularly track win rates and profit-loss ratios to optimize strategy flaws.
4. Cognitive Enhancement: Continuously evolving traders.
1. Understand the essence of the market.
The contract market is a battlefield of capital games and emotional resonance. While learning technical analysis, also study market psychology (like long-short positions, liquidation points), looking for opportunities in collective behavior.
2. Maintain openness and humility.
The market is always changing; past strategies may become ineffective. Continuously learn new tools (like options hedging) and new logic (like the impact of macroeconomics on assets) to avoid stagnation.
3. Distinguish between 'luck' and 'skill'.
One success may be luck; long-term stable profits are the real strength. Beware of survivor bias and do not blindly imitate others’ 'myths'.
5. Ultimate Insight: Trading is a process of cultivating the mind.
Contracts are not gambling but a probability game: Use rules to capture high-probability opportunities, accept small losses, and embrace big gains.
The biggest enemy is yourself: 90% of failures stem from a collapse in mindset, not from a lack of skills.
Balance trading with life: Avoid becoming obsessed with the market, maintain a healthy routine. Life outside the market is the foundation that supports your calm decision-making.
Conclusion:
Trading contracts is like walking a tightrope; it requires extreme calmness and discipline. A true expert is not a fortune teller predicting market movements but a craftsman managing risk. If you cannot master your mindset, even the best strategy will become a gambling tool. Remember: the market never closes, but your capital may only have one chance.