【Contract trading always losing money? 📈📉 Let me tell you a harsh truth...】
If you want to achieve stable profits in the contract market, the most important thing is not how much you earn each time, but how much you can control your losses when you lose!
How many people make a fortune when the market is good, only to lose everything due to an uncontrolled pullback, going back to square one overnight, even losing their principal! 😭 This is the reality!
✅ Core secret: Ironclad stop-loss!
Before placing an order, please ask yourself:
【How much do I plan to lose on this trade?】
Instead of:
【How much do I desire to earn on this trade?】
👉 If you can think about the loss first, you have already won at the starting line! 🧠💡
✨ A method I often use: 【Fixed amount stop-loss method】 (especially suitable for beginners!):
It's very simple, remember this formula:
💰 Amount that can be lost ÷ 🛑 Stop-loss percentage = 📊 Opening amount
For example 🌰:
Suppose the maximum loss you can bear for this trade is 1000U.
The stop-loss percentage you set is 5% (i.e., stop-loss if the price reverses by 5%).
Then, the position size you should open is: 1000U / 0.05 = 20000U.
Doing this helps you firmly limit the maximum loss per trade and avoid huge losses caused by emotional holding. Learn to survive in the market first, then talk about profits! 💪
Summary: In contract trading, risk control is the lifeline! Controlling drawdowns allows you to go further and laugh last. 🚀