Contracts are essentially a game of 'small bets for big rewards'; if played well, you can accumulate gains quickly, but if it collapses, you could lose everything overnight. If you really can't resist, these 8 bottom lines must be ingrained in you – they are 10 times more reliable than those flashy techniques and can help you navigate 90% of pitfalls.
1. Stop loss is not the end; it's a life-saving switch.
In contracts, stop losses are the norm; don't treat a single loss as the end of the world. But the operations after a stop loss truly reveal your mindset:
Some people are eager to 'recover losses', opening 5 trades in half an hour, resulting in a loss increasing from 10% to 50%.
Some people immediately stop, close the software, review the reasons, and the next day try again with a lighter position.
Iron rule: If you have more than 2 consecutive stop losses, you must shut down for the day. Those who bet against the market end up as the market's 'sacrifices'.
2. Don't believe in 'doubling in three days', slow is fast.
Just lost 5000U, and you want to go all-in with 10,000U to recover? This is not trading; it's suicide. The mentality of 'eager for results' in contracts is like running a red light while driving:
Occasionally lucky, but long-term will definitely lead to big problems.
I've seen the most stable contract players earn only 3%-5% daily, but can do so for 3 consecutive months; I've also seen those chasing 'doubling trades' explode their accounts 3 times in a month.
The truth: Earning 3% daily amounts to 12 times in a year; earning 10% weekly results in 140 times in a year. Being steady is better than anything else.
3. Don't understand the trend? Don't act!
Even when the market is clearly rising, some insist on shorting 'guessing the top'; when it's obviously falling, they insist on bottom fishing 'picking up bargains' – this is not confidence, but a head-on confrontation with the market.
Once a trend is established, it's like a flood rushing down; counter-trend operations are like standing on the edge of a wave with a log, getting knocked over is just a matter of time. Wait for the signal to become clear before entering, even if it means making 20% less profit, it's better than losing everything.
Judging criteria: 4-hour K-line has 3 consecutive bars in the same direction before acting; during sideways fluctuations, it's better to stay out than to experiment recklessly.
4. Calculate the 'profit-loss ratio' before opening a trade; this is a math problem.
If a single trade can earn a maximum of 100U but could lose 200U, no matter how tempting, don't touch it. It must at least reach a 'earning 2 is acceptable for losing 1' ratio before it's worth making a move.
Don't always think 'what if I make a profit'; the probability of 'what if' in contracts often leans towards losses. For example, if you open a long position, and the distance from the stop loss to the entry point is 5 points, the take profit should be at least 10 points – this is not greed, but leaving yourself an escape route.
5. Beginners die from 'being too diligent', while veterans win by 'knowing how to be lazy'.
If you want to make a trade every time the market moves a bit, opening 7 or 8 trades in a day may seem like seizing opportunities, but most of the time you are just paying fees to the exchange. You should know:
90% of market fluctuations are 'noise'; opportunities to make big money may only occur once or twice a week.
I once went 3 consecutive days without opening a trade, just waiting for a trend breakout signal, one trade earned back what others made in half a month. Resisting the urge to trade is more effective than any technique.
6. Only earn 'understandable money', don't envy others.
Some people make money relying on MACD golden crosses, while others eat from trend lines; there's no need to envy others for catching a '20x trade' – that's their level of understanding; if yours isn't there yet, blindly following will only lead to losses.
Practice the patterns you are familiar with to the extreme: for example, if you only do 'breakout of previous highs + increased volume' long positions, even if you only make 3 trades in a month, it's better than constantly changing strategies.
Core: Your profits can never exceed your understanding.
7. Holding positions = the fuse for liquidation.
The most common mistake for beginners: When a position loses 5%, they keep thinking 'just wait a bit longer to recover', resulting in a loss increasing from 5% to 50%, ultimately being forcibly liquidated by the system.
The stop loss line is not just for show; it's your escape route. Cut it when it hits, even if it's wrong – the worst that happens is losing 5%, but holding could lead to losing 100%.
Operation: Set a stop loss when opening a position, set it as a 'conditional order' for automatic execution; don't rely on yourself to 'manually stop loss' (when the market is fast, you can't react in time).
8. Don't get carried away when making profits; once you float, you'll fall into a pit.
Just earned on 3 trades and now think 'I'm a genius', starting to increase positions, randomly change strategies, or even stay up late to watch the market – at this point, the market will often slap you.
When making money, it's even more important to maintain discipline:
Keep the position unchanged (don't increase from 20% to 50%);
Keep the strategy unchanged (don't switch from 'trend trading' to 'short-term scalping');
Maintain your routine (don't stay up until 3 AM just to watch the market).
The truth: The moment you 'float up' is the beginning of losses.
Lastly, let me be frank.
Trading contracts is not about technique, it's about mindset and discipline. Review these 8 points before opening trades every day; they can help you avoid 80% of pitfalls. Remember: in the contract market, those who survive are not the smartest, but the ones who can control themselves.
If you really can't do this, I advise you to leave early – this is something not everyone can handle.
Blindly working alone will never bring opportunities; follow Brother Chao, and I will take you to explore tenfold potential coins! Top-tier primary resources!
