1. Core mindset: Survival is the primary goal.
1. Respect the market, give up the fantasy of getting rich quickly.
The essence of the contract market is a zero-sum game; short-term profits may come from luck, but long-term survival must rely on rationality. Never think you are the 'chosen one'; the market is always more complex than your understanding. The mentality of getting rich quickly leads people to over-leverage and trade frequently, ultimately getting swallowed 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 manageable range through stop-loss rules, avoiding catastrophic damage from a single mistake. Treat losses as tuition, not shame.
2. Emotional management: Combat human weaknesses.
1. Balance between fear and greed.
Fear: Not daring to enter the market when it falls, and fearing to miss out (FOMO) when it rebounds, easily leading to chasing highs and selling lows.
Greed: Unwilling to take profits when in the green, always wanting to 'catch the whole fish', ultimately turning profits into losses.
Strategy: Replace emotions with rules, formulate a trading plan in advance (when to enter, stop loss, take profit), and execute like a cold machine.
2. Refuse 'revenge trading'.
Rushing to recover losses after a setback is the trigger for most people blowing up their accounts. At this time, you need to force a pause in trading, review mistakes, rather than 'bet back' with a larger position.
3. Avoid overconfidence.
Continuous 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 paramount.
Do not exceed 2%-5% of your capital in a single trade (adjust based on risk tolerance).
Never add to a 'dead hold' position; decisively stop loss 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 the patterns that belong to you may only be 1-2 types (e.g., trend breaks, pullback reversals). Focus on the patterns you excel at, and abandon the 'noise' in complex fluctuations.
3. Record and review trades.
Daily trading logs: Analyze opening and closing logic, emotional fluctuations, and execution deviations.
Regularly track win rates and profit-loss ratios to optimize strategy loopholes.
4. Cognitive enhancement: Continuously evolving traders.
1. Understand the essence of the market.
The contract market is a battlefield of capital games and emotional resonance. While learning technical analysis, also study market psychology (such as long-short positioning ratios, liquidation points) to find opportunities in group behavior.
2. Maintain openness and humility.
The market is always changing; past strategies may become ineffective. Continuously learn new tools (such as options hedging) and new logic (such as the impact of macroeconomics on assets) to avoid stagnation.
3. Differentiate between 'luck' and 'skill'.
A single success may be luck; long-term stable profits are strength. 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 probability game: Use rules to capture high probability opportunities, accept small losses, and embrace large gains.
The biggest enemy is oneself: 90% of failures stem from mindset collapse, not lack of skill.
Balance trading with life: Avoid becoming addicted to the market and maintain a healthy routine. Life outside the market is the foundation that supports your calm decision-making.
Trading contracts is like walking a tightrope, requiring extreme calm and discipline. True experts are not market predictors but craftsmen of risk management. If you cannot control your mindset, even the best strategy will become a gambling tool. Remember: The market never closes, but your capital may only have one chance.
