If you must trade contracts, be sure to adhere to these bottom lines; they are more useful than reading 100 articles on techniques:
1. Contracts are essentially a game of 'small bets for big rewards'. Stop-losses are normal; don’t treat a single loss as the end of the world. But after a stop-loss, mindset is key—some rush to ‘make back’ their losses and end up losing even more; others immediately pause to review, which allows them to stop in time. Remember: if you hit consecutive stop-losses more than twice, shut down for the day; don’t gamble with the market.
2. Don’t believe in the myth of ‘doubling your money in three days’; contracts are about steady income. Just lost a trade and want to go all in to recover? There’s a 90% chance you'll get liquidated. The biggest taboo in trading is ‘rushing for success’; it’s like running a red light—occasionally you might get lucky, but long-term you’ll face serious consequences. Be steady; even if you only make 3% a day, it accumulates better than reckless trading.
3. If you don’t understand the trend, don’t make a move; going with the trend is more important than anything else. If the market is clearly trending up, don’t force a short; if it’s obviously dropping, don’t try to catch the bottom—this isn’t confidence, it’s a head-on clash with the market. Once a trend is established, it’s like a flood rushing down; going against it is akin to standing on the tip of a wave holding a log, and being knocked over is just a matter of time. Wait for clear signals before entering the market; it’s not shameful.
4. Calculate the risk-reward ratio before placing a trade; this is a life-saving math problem. If a trade looks like it can earn you 100 USDT but might lead to a loss of 200 USDT, don’t touch it no matter how tempting. At a minimum, you should aim for a ‘2 profit to 1 loss’ ratio to justify the trade. Don’t think ‘what if I make money?’—in contracts, the probability of ‘what if’ usually leans towards loss.
5. Beginners fail by being ‘too diligent’, while experienced traders win by ‘knowing how to be lazy’. If the market moves slightly, they want to place an order and end up making seven or eight trades in a day, thinking they’re seizing opportunities, but most are just paying transaction fees to the exchange. Remember: 90% of market fluctuations are ‘noise’; the opportunities to make big money might only come once or twice a week. Resisting the urge to trade is more important than anything else.
6. Only make money from what you understand. No matter how lively the market is, don't get involved with things you don't understand. Some make money with MACD, others with trend lines; there's no need to envy someone who caught a limit up—that's within their understanding. If yours isn’t at that level, following the trend will only lead to losses. Mastering the patterns you are familiar with is more powerful than anything else.
7. Holding on to a position is the fuse for liquidation, especially for beginners. Never fall in love with a position. Always thinking 'just wait a bit and I can break even' leads to holding from a 5% loss to a 50% loss, ultimately getting forcibly liquidated by the system. A stop-loss is not just a decoration; it’s your escape route. When it hits, cut it, don’t hesitate.
8. Don’t get carried away when you’re making a profit; getting high can easily lead to pitfalls. After making a few successful trades, thinking ‘I’m a genius’ leads to over-leveraging, random strategy changes, and even staying up late to gamble on market movements—this is when the market will often hit you hard. When you’re making money, you must stick to discipline because the moment you get carried away is the start of losses.
Trading contracts is not about technique, it's about mindset and discipline. Review these 8 points before opening a position every day; they can help you avoid 80% of pitfalls.
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