1. Core mentality: Make 'survival' the primary goal.
1. Respect the market, abandon fantasies of getting rich quickly.
The essence of the contract market is zero-sum game; short-term profits may come from luck, but long-term survival relies on rationality. Never think of yourself as 'the chosen one'; the market is always more complex than your understanding. A mindset of getting rich quickly can lead to over-leveraging and frequent trading, ultimately being consumed by volatility.
2. Accepting losses is an inevitable cost.
Losses are part of trading; no one can achieve a 100% win rate. The key is to control losses within a bearable range through stop-loss rules, avoiding devastating impacts from a single mistake. Treat losses as tuition fees rather than shame.
2. Emotional management: Combat the weaknesses of human nature.
1. Balance between fear and greed.
Fear: Not daring to enter during declines, fearing to miss out (FOMO) during rebounds, easily chasing highs and selling lows.
Greed: Unwilling to take profits when in the green, always wanting to 'get the whole fish', ultimately turning gains into losses.
Countermeasure: Replace emotions with rules, develop a trading plan in advance (when to enter, stop-loss, take profit), and execute it coldly like a machine.
2. Refuse 'revenge trading'.
Rushing to recover losses after a downturn is the trigger for many to blow up their accounts. At this time, one must forcibly pause trading and review mistakes, rather than 'betting back' with larger positions.
3. Avoid excessive confidence.
Consistent profits can easily lead to overestimating one's abilities and ignoring risks. Remember: the market can reverse at any time; past victories do not guarantee future success.
3. Strategy discipline: Use systems to combat uncertainty.
1. Position management is above all.
Each trade should not exceed 2%-5% of the principal (adjust based on risk tolerance).
Never add to a losing position; decisively cut losses when unrealized losses exceed your plan.
Leverage is a double-edged sword; beginners are advised to start with low leverage (e.g., 3-5 times).
2. Only trade in markets you understand.
Market opportunities are limitless, but your own possibilities may only be 1-2 types (e.g., trend breakout, pullback reversal). Focus on patterns you excel in, and disregard the 'noise' in complex fluctuations.
3. Record and review.
- Daily record trading logs: Analyze opening and closing logic, emotional fluctuations, and execution deviations.
- Regularly calculate win rates and profit-loss ratios to optimize strategy flaws.
4. Cognitive enhancement: Continuously evolving traders.
1. Understand the essence of the market.
The contract market is a battlefield of capital competition and emotional resonance. While learning technical analysis, it is also essential to study market psychology (e.g., long-short positions ratio, liquidation points) to find opportunities from group behavior.
2. Maintain openness and humility.
The market is always changing, and past strategies may become ineffective. Continuously learn new tools (e.g., options hedging) and new logic (e.g., the impact of macroeconomics on assets) to avoid stagnation.
3. Distinguish between 'luck' and 'skill'.
A single success may be luck; long-term stable profits indicate skill. Beware of survivor bias; do not blindly imitate others' 'myths'.
5. Ultimate realization: Trading is a process of self-cultivation.
Contracts are not gambling; they are a game of probabilities: Use rules to capture high-probability opportunities, accept small losses, and embrace large profits.
The biggest enemy is oneself: 90% of failures stem from a collapse in mentality, not from a lack of skills.
Balance between trading and life: Avoid getting addicted to the market and maintain a healthy routine. A life outside the market is the foundation that supports your calm decision-making.
