When doing contracts, it is crucial to have a correct mindset. Here are some suggestions:
1. Establish a correct understanding
- Understand the high risk: Contract trading has a high leverage, and even a small price fluctuation may lead to huge profits and losses. You must understand that you may become rich overnight or lose all your money. Be prepared for risks and do not blindly invest money.
- Understand non-gambling behavior: It is an investment activity that requires strategy and analysis. Decisions should be made based on market analysis, technical indicators, etc., not luck.
2. Do a good job in fund management
- Reasonable allocation of funds: Determine the investment funds according to risk tolerance, generally not exceeding a certain proportion of total assets, such as 30%. Then split the warehouse operation, use part of the funds each time to open a position to avoid losing all the money due to one mistake.
- Set stop loss and stop profit: stop loss to control losses, and stop profit to lock in profits. For example, set a stop loss of 10% for losses and a stop profit of 20% for profits. When you reach your goal, you must resolutely execute it without hesitation.
3. Cultivate rational thinking
- Overcome emotional interference: Avoid greed, fear, and impulse in trading. Don't be greedy for profits and stop profits in time, don't be afraid of losses and don't blindly cover positions, and analyze decisions calmly. For example, do not chase high prices when the market is rising, and do not panic sell when it is falling.
- Avoid following the trend: do not blindly follow the advice of others and market rumors, and have independent judgment and analysis capabilities. You need to make decisions based on your own research and judgment, and do not mess up the rhythm due to the influence of others.
4. Continuous learning and practice
- Strengthen knowledge learning: Continuously learn contract trading knowledge, market mechanisms, technical analysis, etc., and pay attention to factors affecting the market such as macroeconomics and industry dynamics to improve analytical judgment capabilities.
- Summarize trading experience: Summarize gains and losses after each transaction, analyze right and wrong, and improve trading strategies. If you find that it is easy to make mistakes when chasing up and killing down, adjust to wait for the trend to be clear before operating.
