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#ETH If you must trade contracts, keep the following points in mind! They are crucial!
1. Trading contracts is about betting small for big gains, and experiencing losses is quite normal. However, after hitting a stop-loss, there are two types of people: some will go on a spree of opening positions after the stop-loss, while others will directly enter a cooling-off period.
My suggestion is that if you encounter frequent stop-loss situations, you should calm down, temporarily stop trading, and adjust your strategy.
2. Do not rush to achieve success; trading is not a get-rich-quick scheme. When encountering losses in trading, maintain a calm mindset, do not rush to open positions, and never go all-in.
3. It is important to recognize the major trends. When the market shows a one-sided trend, one should follow the trend and not trade against it. Trading against the trend is the root of losses. Whether new or experienced traders, many have the habit of trading against the trend. However, once a market trend is established, counter-trend operations are often severely punished by the market. Therefore, we must learn to go with the trend and patiently wait for opportunities before taking action.
4. The win-loss ratio must be well managed; otherwise, it will be difficult to make money. Ensure that profits are as large as possible compared to losses, and aim for at least a 2:1 ratio before considering placing an order.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must resist the impulse to open positions blindly, especially for new players who are full of enthusiasm for the market and always 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 positions; holding positions in contracts is a major taboo, especially for beginners who have just entered the field. Be sure to set stop-loss orders, as holding positions is the beginning of a descent into the abyss. Again, do not hold positions.
8. Don't get carried away when you're making a profit; getting carried away will definitely lead to losses.
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