Contract Trading Risk Warning: Five Essential Principles for Survival

1. Strict Position Management to Avoid Liquidation Risk

1. Control each margin transaction to be within 10% of account principal (e.g., 1000U principal, single margin not exceeding 100U)

2. For short-term trading, it is recommended to use a high leverage quick in-and-out strategy, achieving a 20% profit to take profit in a timely manner

3. For long-term trading, choose low leverage to build positions in batches, and it is strictly prohibited to operate with full positions at once

2. Scientifically Set Stop Loss and Take Profit

1. Each trade must preset a stop loss level; immediately stop loss and exit when the loss reaches 5%

2. When the profit reaches 15%, it is recommended to adopt a batch take profit strategy to lock in profits and prevent pullbacks

3. Maintain Rational Trading Discipline

1. It is recommended not to exceed 3 trades per day to avoid decision-making errors due to fatigue

2. It is prohibited to blindly chase prices and increase positions during profits, or to stubbornly average down during losses

4. Flexibly Respond to Market Conditions

1. Range-bound Market (common on weekends): It is recommended to set a 3% profit target to take profits in a timely manner

2. One-sided Market: Use a trend-following trading strategy, and consider adding positions when prices pull back by 5%

5. Adhere to the Principle of Trend Trading

1. Combine the weekly MACD indicator with the daily moving average system to judge market trends

2. Never engage in counter-trend bottom-fishing or top-touching operations; respect the objective market trends

Special Reminder: Contract trading is a high-risk investment behavior, with statistics showing that 90% of participants ultimately incur losses. If seeking stable returns, it is recommended to prioritize spot dollar-cost averaging and long-term holding strategies.