It is almost impossible to trade contracts without losing money; the best we can do is small losses and big gains.
Below is a personal summary of methods to avoid significant trading losses.
I hope it helps some novice friends.
First, trading against the trend.
Trading against the trend is the most common problem for novice traders, rooted in poor grasp of entry points and stop-losses, as well as significant mindset issues.
Trading against the trend involves bottom-fishing and top-tapping, which is a strategy with low win rates but high risk-reward ratios. Because of the low win rate, one must not hold on to losing trades and should cut losses promptly. Once a position is taken,
Many people cannot hold on; they exit at the first sign of volatility, resulting in a low win rate and low risk-reward ratio, and their mindset and skills are far from adequate, which contradicts the original intent of bottom-fishing and top-tapping strategies.
Second, trading with heavy positions in the direction of the trend without clear entry points.
In my view, heavy positions only have two critical points: third buying and third selling, which are definitive reversal points of the trend. Any technical points within the trend are less effective and suitable for light positions because the pullbacks and rebounds within the trend can be quite large.
If a heavy position hits a stop-loss, it is likely that the market will return to the opening price, so after the trend has been running for a while, one should trade with the trend. One-third of the usual position is sufficient; if you can capture a little, that’s good; if not, then let it be.
You must learn position management and understand how to read candlesticks, analyze trends, support levels, resistance levels, etc. It is not that easy.
Most contracts result in losses; only professionals can make money.
The fans of the battle team are grinding every day, including one fan's account.
Every meal is different 🎉
Following the brother's lead,
Twelve meals in three days, no problem.
Daily opening of the Dan.
The battle team continues to profit!
When the market comes, we must go all out; we are about to set up the next great trade, keep up, keep up! ☝🚗
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