Choice is greater than effort; direction is more important than specific points! If you want to be smart, you need to be around smart people to become wiser; if you want to excel, you need to surround yourself with outstanding individuals to stand out. Reading good books and meeting great people are the two great fortunes of life.
How to become a skilled contract trader?
First, you need to have the patience to wait.
Currently, all contract varieties on the exchange have the characteristic of two-way trading. The market can remain stagnant for a long time, but once it moves, it can be shocking. Sometimes the current top immediately breaks through to become the bottom, and vice versa. This requires us to learn to wait—for the trend to establish itself and to seize opportunities with confidence in our orders. Try not to rush into placing orders; observe more and act less. Opportunities are discovered through patience.
Second, learn to endure; do not be greedy or impatient.
Don't always think about buying at the lowest point and selling at the highest place; such a mindset can easily lead to being trapped. Also, don't feel it's an opportunity just because the price rises or falls a little; blindly rushing into the market won’t help you grow from a novice to a skilled contract trader. You must endure the loneliness of being in cash, restrain yourself, and enter the market according to your trading plan.
Third, stability is required.
Investing is not gambling; you cannot rely on your subjective imagination, thinking 'it should rise soon,' 'it’s likely to fall,' or 'tomorrow will definitely rise or fall sharply,' etc. Instead, you need to have a certain level of assurance and stability. You must aim to not enter the market unless you have a significant chance of making a profit, and then exit at a target price to secure your gains.
To survive in the contract market, one must understand a principle: the market is always right, and following the trend is the supreme rule. Seek stability in following the trend; run when the color changes, and make decisive moves when necessary. When placing orders, aim for 'profit is expected, loss is an exception.' As long as you can make a profit, don't aim to take it all; even if you earn very little in a day, it can accumulate over time.
Fourth, accuracy is required.
Accuracy, in other words, means having a high win rate. Those with a high win rate are the ones who can survive in the contract market, rather than those who flip-flop between losses and gains. So how to achieve accuracy? As long as you can practice 'waiting,' 'enduring,' and 'stability,' you will also achieve 'accuracy.'
Fifth, be tough on yourself.
Firstly, be strict with stop-losses. The waiting mentioned earlier is for the opportunity to place an order, not for waiting to get out of a wrong order. In any market, a qualified contract investor or trader must strictly enforce stop-losses. Failing to do so will eventually lead to larger losses, making recovery difficult. One must have the determination to cut losses in order to survive and then reflect on why an order was placed at a certain position, the reasoning behind the order, and if there were any shortcomings that led to being trapped at that position.
The second key is to seize opportunities and dare to place large orders without hesitation. Set clear profit and loss limits, but this should not be done blindly without a solid foundation and careful consideration.
The market changes rapidly; staying updated is crucial. In this market, the rule is that those who can buy are disciples, and those who can sell are masters. Regardless of whether you profit or lose, you must minimize losses and maximize profits. Additionally, having logic in your trading is essential, as it improves accuracy, and maintaining a good mindset is indispensable.
Brother Liang only engages in real trading. If you want to join, hurry up!
