Contract trading life and death situation: 8 iron laws to turn you from a "leek" to a "hunter"!
Getting involved in contract trading is like stepping into a "battlefield" full of risks and opportunities. If you want to survive and gain something in this battlefield, you must keep the following key points in mind. They are the cornerstones of your invincibility in this game:
1. Stay calm after stop loss
Stop loss is the shield of trading: stop loss is not a failure, but to prevent further loss. Every stop loss is a valuable experience. Review the strategy in time, find loopholes, and avoid repeating the same mistakes.
Emotional control is crucial: it is easy to become emotional after stop loss, and rushing to recover the capital often leads to greater losses. It is recommended to suspend trading after stop loss, think calmly, and re-examine the market.
2. Abandon the mentality of quick success and instant benefits
Trading is a long-term accumulation process: contract trading is not gambling, and you can't expect to get rich overnight. Stay patient, follow the trading plan, and gradually accumulate profits.
Avoid heavy positions: Don't rush to recover when you lose money, heavy positions will only increase risks. Only by taking steady steps can you last long.
3. Follow the general trend
Following the trend is an iron rule: when a unilateral market comes, operating against the trend is often self-destructive. Both newcomers and veterans are prone to make the mistake of "buying at the bottom and touching the high", and the result is often a lesson from the market.
Patiently wait for opportunities: understand the market trend and follow the trend to seize the opportunity to make a profit.
4. Reasonably grasp the profit and loss ratio
The profit and loss ratio is the key to profit: before opening an order, ensure that the profit and loss ratio is at least 2:1, so that the profit space covers the risk of loss. Don't make a loss-making deal.
Balance of risk and return: A reasonable profit and loss ratio is the basis for long-term profit. Don't blindly pursue high returns and ignore risks.
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