Many people lose money trading contracts; how can one trade contracts for long-term profitability?
To survive long-term in the contract market, the key is not to catch every market move but to only engage in high-probability trades.
The moving average group at the 4-hour level is the core tool for judging trends. For example, when MA60 continually suppresses prices, each rebound to this moving average is an opportunity to gradually position short orders.
Long positions should wait for price to retrace to key support levels.
Capital management is more important than technical analysis; do not risk more than 10% of your capital on a single trade, and stop trading immediately if daily losses reach 20%.
Position size must be fixed; always build positions gradually and leave enough ammunition for additional buying. Trend trading is the way to go; if the long-term trend is downward, avoid taking counter-trend long positions, and pursue strong coins only when a bull market arrives.
The risk-reward ratio should be at least 1:3; a single win should be able to offset three losses. In extreme market conditions, learn to stay out of the market; during sharp declines, it’s better to miss out than to recklessly catch falling knives.
As long as the trend is intact, hold onto winning positions; don’t rush to close them. Remember three iron rules: never go all-in, refuse to stay up all night watching the market, and avoid the market on weekends. Most importantly, control your emotions; after a series of losses, you must take a mandatory break—the market is always full of opportunities, but what’s lacking is the capital to survive until tomorrow.
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