To achieve the 'unity of knowledge and action' in contracts means simply 'knowing what to do and actually doing it,' without letting greed or panic lead to mistakes, and steadily earning step by step. Many people understand the concept of 'light positions and stop-losses,' but when the market fluctuates, they panic - either going all in or hesitating to sell at the stop-loss line, ultimately losing anyway. To make steady progress and achieve consistent profits, the key is to turn 'theory' into 'habit' and manage oneself with practical methods. The following straightforward tips will guide you.
First, write down the rules for 'stability' instead of relying on memory.
If you want to achieve the unity of knowledge and action, you must first have clear 'operational rules', and they cannot just be in your head; they need to be written down on paper or in a mobile memo to keep an eye on and follow. For example:
Set the position at a strict 3%; regardless of how tempting the market is, open no more than this and never go all in.
Set the stop-loss line at 6%; as soon as you lose that amount, sell immediately without hesitation;
Only trade coins you are familiar with (like Bitcoin, Ethereum), and do not touch meme coins even if they rise.
Why write it down? Because once the market fluctuates, people tend to act impulsively - seeing others profit makes you want to increase your positions; when you lose money, you become reluctant to cut losses, always thinking you can break even. At this point, referring to the written rules is like someone pulling you back: 'Don’t mess around; stick to the rules!' For example, if you initially set a 3% position and then see Bitcoin surge, wanting to increase to 10%, looking at your memo will help you calm down: 'Right, going all in is risky, so keep to 3%.' The more specific the rules, the easier they are to 'follow.'
Second, practice 'small cost trial and error' instead of going all in right away.
When you just want to develop the habit of 'stability', do not risk with large capital. Start with small funds to practice; even if you make mistakes, the loss won’t be much, and you can gain experience. For example, if you have 100,000 yuan in capital, start with 10,000 yuan, and if you calculate with a 3% position, only open positions of 300 yuan, with a maximum loss of 18 yuan.
Doing this has two benefits: first, there’s no fear of losses, which stabilizes your mindset - even if you hit a stop-loss, it’s just an 18 yuan loss, and you won’t hold the position out of regret; second, you can gradually develop the habit of 'executing rules,' like selling when you hit the stop-loss line. Practicing this a dozen times means that next time you use larger funds, you can act without hesitation. Many people start with large capital; after one loss, they panic, and later either hesitate to act or act randomly, which prevents them from making money. Using small funds for trial and error is like learning to drive in an open area before hitting the road - it’s much steadier.
Third, don’t focus on short-term fluctuations; follow the 'plan' and don’t let emotions lead you astray.
The easiest way to fail in contracts is to be led by short-term market trends - when prices rise, you think 'I'll wait a bit longer to earn more,' but if you don’t take profits in time, you end up losing; when prices drop, you panic and think 'sell quickly, don't lose more,' and end up selling at the lowest point. To maintain steady progress, you need to set a 'take profit and stop-loss plan' in advance and stick to it regardless of market fluctuations.
For instance, if you buy a Bitcoin long position at an entry price of 40,000 and set a stop-loss at 39,760 (6% loss) and a take profit at 41,200 (3% profit). If the price rises to 41,000, you might think 'I’ll wait until it hits 42,000 to sell'; at this moment, remind yourself: 'The plan says to take profits at 41,200, don’t be greedy!' If you don’t follow the plan and wait until the price falls back to 40,000, you’ll end up with nothing. Conversely, if the price drops to 39,760, no matter how reluctant you are, you must stick to the stop-loss and not think 'maybe it will come back.' Execute according to plan; it’s not rigid but prevents emotions from swaying you - emotions are the least reliable; plans are the solid foundation for profits.
Fourth, review daily; if you made a mistake, correct it; if it was right, stick to it.
If you want to continue making profits, you need to know where you are doing right and where you are doing wrong, which requires a 'review' - spending 10 minutes every day to look back at the day's trades:
If you follow the rules with light positions and stop-losses and make a profit, note it down: 'Today I didn’t get greedy; I took profits as planned and will do the same next time.'
If you didn’t follow the rules, like opening a 5% position and nearly facing a liquidation, promptly correct it: 'Next time, I must not exceed a 3% position; put the rules on the screen as a reminder.'
If you followed the trend and bought a meme coin and lost money, remember: 'In the future, only trade familiar coins, don’t follow trends'.
Reviewing doesn’t need to be complicated; just jot down a few notes: What trades did you execute today, why you did them, what were the outcomes, and how to improve next time. For instance, if one day you opened a full position because you saw on a chat group that 'Ethereum is going to skyrocket,' and ended up losing, during your review, write: 'Following the trend in full = loss; next time, regardless of what others say, I’ll stick to my rules.' The more you review, the fewer mistakes you’ll find, and your trading will become steadier - just like driving; you naturally learn where to slow down and where to stop without consciously thinking about the rules.
Fifth, don’t chase 'quick profits'; accept 'slow gains' for longevity.
Many people want to 'double their money' in contracts, but end up losing everything. The core of 'steady progress' is accepting 'slow gains' - for example, earning 5% each month can yield over 70% in a year, which is much better than risking 10 times in one go and losing everything next time.
For example, one person takes profits at 3% and cuts losses at 6%. Although the individual gains are small, the win rate is high (e.g., 7 out of 10 trades), leading to a consistent monthly profit of 5%. Another person always aims for a 20% gain, operating with full capital, resulting in only 3 successful trades out of 10 and ultimately losing everything. Contracts are not about gambling and leaving; they are long-term matters. 'Slow gains' lead to 'steady profits'; 'quick gains' often result in 'quick losses.' Accepting 'slow' helps avoid greed and impulsivity, allowing for proper execution of rules and consistent profits.
Conclusion
The 'unity of knowledge and action' in contracts is essentially 'putting simple rules into practice' - setting rules for position sizing, stop-loss, and take profit; writing them down; practicing with small funds to develop habits; trading according to plan without being swayed by emotions; reviewing daily and correcting mistakes; accepting slow gains and not chasing quick profits. There’s no need for complex techniques; just be steady, and you’ll find that you can make money without taking risks. This is the most reliable way to 'advance steadily' in contract trading.