Investment Pitfall Avoidance Guide: Survival Rules in the Contract Market

In the contract market, those who face liquidation and significant losses often share common issues. If not addressed, losses will follow you like a shadow.

Common Loss-Inducing Characteristics

1. Heavy Betting: Often trading with a position of 30% - 50%, which seems to offer great profit opportunities, but in reality, the risks are sky-high. With high positions, even slight market fluctuations can cause significant account shrinkage, leading to extremely poor risk tolerance.

2. Stubborn Holding: In the face of unfavorable market conditions, one often clings to the hope of a rebound and refuses to acknowledge mistakes or stop losses. The market will not change due to personal will, and stubborn holding will only lead to expanding losses.

3. Ignoring Stop Losses: Not accustomed to setting stop losses and relying on manual closing of positions. In extreme market situations, there may not be time to react, and one can be trapped deeply in a matter of moments, causing serious financial damage.

The Path of Light Positions and Stability

Some look down on a 10% position, thinking the profits are too small. However, the key to investment is to avoid the mindset of getting rich overnight. If one can achieve more than 5% return on the total account daily, the returns after a month can be quite substantial. Light positions and small amounts, trading in line with the market trend, can lead to steady gains over time. When the account balance doubles, withdraw the principal promptly, keeping a relaxed mindset, which can actually speed up profit accumulation.

In the contract market, overcoming bad trading habits and adhering to stable principles is essential to go further in the investment wave and achieve steady asset growth.

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