There is a very important principle in contract trading: do not make a small profit and a big loss.

It is a very simple rule, but there are great difficulties in the actual situation. For example: you open an order for 50,000, the price rises to 51,000, and you earn 2%. You happily close the position, but you did not expect that the price would reach 60,000 and you would regret it.

Then you reopen the position, and you suggest to yourself to look further ahead and not to stop profit casually. So the price falls to 4.9, and you feel that it can still rise, and then you lose 50%. The final result is... 2% profit and 50% loss. It is really difficult for me. The profit of 20 times is not enough to make up for the loss of one time.

Many people are struggling in this dilemma of high winning rate but always losing money, and finally get the ending of quitting the circle.

Is there a way to make a big profit and a small loss? There is definitely no way. Some ways are to make the profit ratio higher than the loss ratio, that is, to grasp the profit and loss ratio! Stop loss and stop profit in time. If you expect to make a profit of 6% and a loss of 2%, then your profit and loss ratio is 3 to 1. You can make money back after losing 3 times. This is my order logic.

Of course, this requires the control of the market trend. If you feel that the probability of winning is relatively high, then you can take a gamble. The maximum loss is 2% of the fluctuation, and there is no upper limit. Everyone tries to improve their control of the trend, and naturally they can improve their winning rate. This requires the accumulation of many small losses.

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