Contract Trading 'Lifeline' Guide, Remembering is Key to Avoid Pitfalls

If you want to venture into the high-risk 'battlefield' of contracts, all fellow traders must engrave the following key points into their bones, as they are crucial!

1. Don't Panic After Stop Loss: Trading contracts is essentially about risking a little for a lot, and experiencing losses is completely normal. After a stop loss, some people rush to open new orders in a frenzy, hoping to recover immediately; others pause rationally and enter a cooling-off period. Listen to advice, if you frequently hit stop losses, do not get too emotional, immediately stop, calm your thoughts, review your strategy for flaws, and recklessly opening new orders will only lead to deeper losses.

2. Abandon Short-sightedness: Trading is definitely not a means to profit overnight. Getting anxious at the first sign of loss, over-leveraging, and hastily opening new orders are common mistakes for beginners. Remember, maintaining a stable mindset is key; wealth accumulation relies on steady streams, and you can't rush to eat hot tofu.

3. Follow the Major Trend: When a one-sided market arrives, going with the trend is a hard rule! Both new and experienced traders often make the mistake of trading against the trend, always harboring the hope of 'catching the bottom or peaking,' only to be severely punished by the market. Understanding market trends, patiently waiting for opportunities, and following the major trend is the way to hit the profit rhythm.

4. Manage the Risk-Reward Ratio: To profit in contracts, the risk-reward ratio is the core 'checkpoint.' If this step is not done well, profits will become an illusion. Ensure at least a 2:1 risk-reward ratio before opening orders, allowing profit space to securely cover loss risks; do not engage in losing trades.

5. Avoid Frequent Trading: Beginners should be particularly cautious! Blindly opening orders at the slightest market fluctuation, thinking that gold is everywhere, is actually mostly traps. If you have not developed expert skills, control your hands and restrain your impulses; trading less and trading wisely is the way to survive.

6. Maintain Cognitive Boundaries: Only earn money within your understanding; this is a hard rule. Recklessly entering beyond your knowledge is like a blind person touching an elephant, with risks completely uncontrollable. Deepen your knowledge, accumulate experience, and 'mine gold' in familiar fields for a solid approach.

7. Eliminate Holding Orders: Holding orders can be considered the 'death curse' of contracts; the first lesson for beginners is to learn to stop loss! Once the market reverses, holding on with fantasies leads to an ever-growing loss snowball, instantly plunging into an abyss; timely stop losses are essential.

8. Don’t Be Impulsive When Profiting: Don’t get carried away with paper profits; once you float, trouble is sure to follow. Arrogance leads to defeat; at this moment, it’s even more important to remain steady, strictly adhere to trading discipline, operate according to strategy, and stabilize profit results.