What are the tips for trading contracts? (Must-watch for beginners)
1. Try to open positions after a significant drop or rise.
2. Go long after a big drop and go short after a big rise.
3. Try to choose contracts with a longer duration; otherwise, the market may have not moved yet before expiration, and even if you open a new position, it may lead to sunk costs or an increase in the cost of holding.
4. Prepare sufficient margin.
5. Within the valid period of the contract, you can also sell high and buy low; when profitable, appropriately reduce your position, and when losses are larger, add back. This way, you can lower costs and increase the margin ratio, all within the current funds.
6. Provided that the margin is sufficient and the position is moderate, as long as the direction you are optimistic about hasn’t changed and the contract is still valid, the best approach is to let it fluctuate—lie down and play dead.
7. The biggest risks of contracts are first, insufficient margin to withstand volatility leading to liquidation; second, a short remaining duration losing future potential resulting in predetermined losses; and lastly, betting on the wrong direction, leading to irreversible losses!
Sharing the profit situation from the last two months; what do you think, brothers? Qi Shen will not disappoint your trust.
Daily opening positions, continuously profitable. Friends who are currently confused and directionless in trading, just leave a comment.
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