If you must trade contracts, remember the following points!!
If you must trade contracts, remember the following points! They are crucial!
1. Trading contracts is about making big gains with small investments; experiencing losses is normal. However, after hitting a stop-loss, there are two types of people: some will frantically open new positions, while others will enter a cooling-off period.
My advice is that if you frequently hit stop-losses, you should calm down, temporarily stop trading, and adjust your strategy.
2. Do not rush to achieve results; trading is not a means to get rich overnight. When facing losses in trading, maintain a calm mindset, don't rush to open new positions, and especially don't go all-in with heavy positions.
3. It's important to recognize the overall trend. When you see a one-sided market from the charts, you should act according to the trend and not trade against it. Trading against the trend is the root of losses; whether you are a novice or an experienced trader, many have the habit of trading against the trend. However, once the market trend is established, trading against it can lead to severe lessons. Therefore, we must learn to go with the trend and patiently wait for opportunities to act.
4. Make sure to maintain a good risk-reward ratio; otherwise, it will be hard to make money. Aim for profits to be greater than losses, at least a 2:1 ratio, before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you are not an expert in contracts, you must restrain the impulse to blindly open positions, especially for novice players who are passionate about the market and want to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Only earn money within your understanding; this is very important.
7. Do not hold onto positions; holding onto contracts is a major taboo, especially for beginners. You must set stop-losses; holding positions is the beginning of a downward spiral. Again, do not hold onto positions.
8. Do not get carried away when making profits; getting carried away will definitely lead to losses.
Click on my profile to follow me for free sharing of bull market strategies, various contract and spot reference points. Be my follower, and I will help you succeed; you just need to relax.
