I. Core mindset: Survival as the primary goal
1. Respect the market, give up fantasies of getting rich quickly
The essence of the contract market is a zero-sum game. In the short term, you may profit due to luck, but long-term survival must rely on rationality. Never think of yourself as the 'chosen one'; the market is always more complex than your understanding. The mentality of getting rich quickly can lead people to over-leverage and trade frequently, ultimately being consumed by volatility.
2. Accepting losses as an inevitable cost:
Losses are a part of trading; no one can achieve a 100% win rate. The key is to control losses within a bearable range through stop-loss rules, avoiding a single mistake from causing catastrophic damage. Consider losses as tuition fees rather than shame.
II. Emotional management: combating human weaknesses
1. The balance between fear and greed
Fear: not daring to enter when prices drop, afraid of missing out (FOMO) during rebounds, easily chasing highs and cutting losses.
Greed: unwilling to take profits when in profit, always wanting to 'eat the whole fish', ultimately turning gains into losses.
Countermeasure: Replace emotions with rules, and formulate a trading plan in advance (when to enter, stop-loss, take profit), executing coldly like a machine.
2. Refuse 'revenge trading'
Rushing to recover losses after a loss is the trigger for most people to blow up their accounts. At this time, you need to forcibly pause trading and review your mistakes, rather than 'betting back' with a larger position.
3. Avoid excessive confidence
Continuous profitability can easily lead to overestimation of one's abilities and neglect of risks. Remember: the market can reverse at any time; past victories do not guarantee future success.
III. Strategy discipline: using systems to combat uncertainty
1. Position management is above all else
Single trade position should not exceed 2%-5% of capital (adjust according to risk tolerance).
Never add to a 'dead hold'; decisively cut losses when unrealized losses exceed your plan.
Leverage is a double-edged sword; beginners are advised to start with low leverage (like 3-5 times).
2. Only trade in markets you understand
Market opportunities are limitless, but the possibilities that belong to you are only 1-2 patterns (such as trend breakthroughs and pullback reversals). Focus on the patterns you are good at, and abandon the 'noise' in complex fluctuations.
3. Record and review
Daily record of trading logs: analyze entry and exit logic, emotional fluctuations, and execution deviations.
Regularly statistics on win rates and profit-loss ratios, optimizing strategy loopholes.
IV. 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, it is also important to study market psychology (like long/short positions ratio, liquidation points), finding opportunities from collective behavior.
2. Maintain openness and humility
The market is always changing; past strategies may become ineffective. Continuously learn new tools (like options hedging), new logic (like the impact of macroeconomics on assets), and avoid stagnation.
3. Distinguish between 'luck' and 'skill'
A single success may be luck, but consistent long-term profitability is true skill. Beware of survivor bias, and do not blindly imitate others' 'myths'.
V. Ultimate realization: Trading is a process of mental cultivation
Contracts are not gambling, but a game of probability: use rules to capture high-probability opportunities, accept small losses, and embrace big gains.
The biggest enemy is yourself: 90% of failures stem from a collapse in mentality, not a lack of skills.
Balance between trading and life: avoid getting addicted to the market, maintain a healthy routine. Life outside the market is the foundation that supports your calm decision-making.
Conclusion:
Trading contracts is like walking a tightrope, requiring extreme calmness and discipline. True masters are not prophets of market trends, but craftsmen managing risk. If you cannot control your mentality, even the best strategy will become a gambling tool. Remember: the market never closes, but your capital may only have one chance.
