Contracts, simply put, are accelerators.
If you judge the direction correctly, it can multiply your profits several times; but if the direction is wrong, it can also wipe you out in a day.
Many people, when they first enter the market, think about "leveraging to turn things around," only to find their account funds taken away by the market before they even get warm. To truly go far in contracts, you must understand a few iron rules.
First: Light positions are the foundation of survival.
Many people come in and immediately go all-in with high leverage, betting on luck, not skill. True traders always build positions cautiously. Start with a small position, wait for the trend to confirm, and then gradually increase the position. This way, even if you encounter reverse fluctuations, you can withdraw unscathed.
Second: Don’t blindly guess based on momentary feelings.
Many people place orders based on intuition, chasing when they see prices rise and cutting when they see prices fall. The core is to observe key levels. If the support area holds, that's a low-buy opportunity; if the resistance area can't be broken multiple times, it's a good chance for short positions. Direction isn't guessed randomly, but verified by key points.
Third: Stop-loss is your armor for survival.
In my early years, I also had a lucky mentality, thinking the market would turn around, but ended up losing most of my capital in one go. Later, I realized that stop-loss isn't failure, but a way to protect your qualification to continue participating. Setting a stop-loss properly prevents you from being kicked out by an unexpected event.
Fourth: The trend is your biggest friend.
Don't contend with the market. If the main trend is rising, you short; if the main trend is falling, you long, even if you pick up a small profit in the short term, you will ultimately lose it back. Only by following the trend can you sustainably profit.
Fifth: Mindset determines your longevity.
The reason why technically sound individuals face liquidation often lies in a broken mindset. After several consecutive losses, they rush to double down hoping to recover, only to end up exiting overnight. True experts are those with a strong sense of rhythm, able to hold cash, accept small losses, and not be driven by emotions.
Contracts aren't difficult; the challenge is controlling oneself. Learn to manage your positions, understand how to protect your stop-loss, operate in accordance with the trend, and stabilize your mindset. This is a complete system. If you can do these few things, contracts will not be a meat grinder, but a tool for growing your capital.
In this market cycle, whether you can recover your funds depends entirely on yourself. Start planning with me early, and let’s help you rise from the low point sooner.
