#⃣️Insights from spending tens of thousands of USD on contract trading lessons:
In contract trading, I have paid tens of thousands of USD in tuition and deeply realized that this is a cruel game of battling the market and battling oneself. Here are a few key insights I have summarized, hoping to help you avoid detours in trading.
1. The timing of opening positions is crucial
The timing of opening positions directly determines profits and losses. Positions should only be opened at very ideal times to ensure maximum win rates. After identifying the opportunity, open positions with low leverage, and immediately lock the position (close the app and stop monitoring), waiting to check the results the next day. This can prevent short-term fluctuations from affecting your mindset.
2. The importance of locking positions
Locking positions is key to avoiding emotional trading. If you do not lock positions, frequently checking prices can lead to the following consequences:
- When trading correctly: Price fluctuations can disrupt your mindset, causing you to doubt your judgment, potentially leading to early closing or taking small profits. If you do not check prices, you might find the stop loss was not triggered the next day, resulting in significant profits instead.
- When trading incorrectly: Frequently monitoring during losses can lead to frequent trading, a rush to recover losses, and even using high leverage, ultimately resulting in larger losses. Locking positions can prevent this vicious cycle.
3. Reduce the number of openings
Since the timing of opening positions is very critical, it is necessary to reduce the number of openings. It is recommended to limit the number of positions opened each week; for example, I personally only open positions four times a week. This forces you to choose only the most confident opportunities and avoid opening positions arbitrarily.
4. Use low leverage and eliminate high leverage
Low leverage is the foundation of stable trading, while high leverage is a shortcut to rapid losses. You must insist on using low leverage to avoid using high leverage out of greed or eagerness to recover losses.
Summary:
The above rules may seem simple, but executing them is extremely challenging because it requires you to overcome human weaknesses. Most people desire to get rich overnight and rush to recover losses when in the red, but only by strictly adhering to the rules can one survive and achieve stable profits in this cruel market.
The key is to:
- Patiently wait for the best opening opportunities
- Lock positions to avoid emotional trading
- Limit the number of openings to avoid frequent trading
- Adhere to low leverage and eliminate high leverage
Only by overcoming human greed and fear, and strictly implementing these rules, can one remain undefeated in contract trading.
