In fact, contracts are not designed for the average player.

1. Capital management must be up to par. With 0-100x leverage, short-term losses are inevitable. The risk per trade should generally not exceed 2%-3%; aggressive players might go up to 5%-8%. If the risk exceeds 8%-10%, the drawdown in adverse conditions could reach 70%, and generally, a person’s psychological collapse point is around 50%. Strictly implement capital management.

Many people prefer 5x or 10x leverage, trading at levels above 4H. The stop loss for levels above 4H generally ranges from 5% to 15%, and the risk per trade already reaches 25%, which is undoubtedly a path to destruction. To ensure risk levels while simultaneously guaranteeing high leverage, the trading level must be lowered to 1 hour, 15 minutes, or 5 minutes.

At smaller levels, the number of players who can handle them becomes fewer. Generally, the limit for typical players is 1H-4H, while 5-15 minutes can be handled by professional players. The 1-minute level is generally beyond the reach of ordinary professional players.

2. The trading system must pass the test. To refine the trading system, long-term trading experience accumulation is necessary. The sign of successful refinement is avoiding trades outside the model, with clear condition definitions. In this process, continuous iteration is required, experiencing the baptism of bull and bear market fluctuations, as it involves leveraged trading, T+0, and frequent trading, you need to prepare 90%✖️9 in tuition fees. Many people start with hundreds of thousands to play, and it’s important to understand that regardless of the starting capital, it only covers one round of tuition fees, with 8 more rounds to go. Therefore, it’s necessary to start with a small amount, a few hundred or a few thousand is fine, and don’t increase capital when making profits; profit should be withdrawn, continue to trade with a small amount. In the beginning, the system and operations will not be particularly proficient, and many mistakes and unnecessary actions are unavoidable. Many posts talk about how much they lost; in my opinion, such losses are meaningless, just paying for one round of tuition, without even touching the door, and the learning curve hasn’t improved, which is no different from gambling.

3. Execution capability must be up to par. Similar to last year's 519 incident, making a wrong call once can lead to irreversible consequences. Regardless of how much you made before, if you haven’t survived similar black swan events, it all equals zero. Strict stop-loss measures go without saying; more often than not, liquidation occurs from counter-trend bottom-fishing, like the recent Luna case, which also resulted from counter-trend bottom-fishing. Don’t gamble on low-probability events, nor fantasize about achieving everything in one go.

4. Time and experience accumulation. A round of bull and bear market fluctuations requires familiarity with the characteristics of different stages of the varieties' market, adjusting strategies according to market conditions.

For retail traders, the time spent in this market is very limited; getting involved in such a professional market is certainly difficult. A few suggestions are recommended.

1. Small capital for trial and error. 2. Keep leverage below 2/3, plan funds well based on the larger cycle, and consider rolling positions. 3. Trade at the 1H, 4H, or daily level for larger cycles. 4. If conditions are insufficient, non-professionals should not engage in contract short-term trading, and only trade professionally when there are no other options. 5. Without completing the previous four items, do not invest more than 20,000; consider any loss as pocket money that you won’t mind losing.

In fact, in terms of difficulty, contracts are much more brutal than arbitrage and spot trading in terms of results. Don’t be fooled by the few at the top of the pyramid; those are just bait to lure retail investors into the game. Who doesn't know that one general's success is built on the bones of thousands?

Hope for fewer tragedies and more rationality. Light positions, follow the trend, and set stop losses. The above suggestions aim to save your wallet and prevent you from sinking into the quagmire of gambling on a road of no return. With 2000 yuan in your pocket, why bother trading contracts? Even making ten times a year would only earn 20,000 yuan, setting up a stall for a month would be better than this. Many people end up getting stuck in a rut, insisting on making it work, while the opportunity cost is much higher than other paths. Act according to your capacity based on the conditions.

Follow Dong Ge closely, use precise strategy analysis, and select carefully with a huge investment of millions in AI big data to keep oneself invincible? The market never lacks opportunities; the question is whether you can seize them. By following experienced people and the right individuals, we can earn more!

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