A must-read for friends who play contracts:

1. Trading contracts is about betting small to gain big, and experiencing losses is quite normal. However, after hitting a stop loss, two types of people emerge: some will frantically open new positions after the stop loss, while others will directly enter a cooling-off period.
My suggestion is that if you encounter frequent stop losses, you should calm down, temporarily stop trading, and adjust your strategy.


2. Don't rush to succeed; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset, avoid rushing to open positions, and definitely do not go all in with heavy investments.

3. Whether you are a beginner or an expert, it is important to understand the current market trends. Only engage in the trends that you can comprehend, and for those you do not understand, observe patiently and wait for the right opportunity to act.


4. The profit and loss ratio must be done well, otherwise it will be difficult to make money. The profit should be as large as possible compared to the loss, and at least a 2:1 ratio must be achieved to consider 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 as a novice player who is full of passion for the market and always wants to seize every opportunity. However, most so-called opportunities will lead to losses.


6. Do not hold positions; holding positions in contracts is a big taboo, especially for newcomers who have just started. You must set stop-losses. Holding positions is the beginning of entering the abyss, and stop-losses are the costs we must pay to profit in this market. Again, I remind you not to hold positions.

7. Don’t get carried away when you’re making a profit; getting carried away will lead to losses.