Seeing many friends lose money back and forth in the futures market, losing more than they earn, really hurts. Today, I'll talk about how to systematically improve contract win rates, and those pitfalls I've encountered that you might also be falling into.
First, let's talk about mindset, which is the most important.
First, get rid of the gambler's mentality. Futures are trading tools, not a shortcut to overnight wealth. If you come in with the mindset of 'going all in for financial freedom', there's a 99% chance you'll lose everything and leave. Treat futures as a business that requires careful calculation.
Second, accept failure and allow for small losses. No one can make a profit on every trade. Pursuing a perfect win rate will only make you hold on stubbornly during losses, ultimately leading to liquidation. Successful traders incur small losses and big gains, covering all small losses with a few key profits.
Third, overcome greed and fear. When in profit, wanting to earn more and unwilling to take profit leads to profit loss; when in loss, fearing further losses and unable to cut losses leads to bigger holes. This is human nature and must be overcome with discipline.
Next are practical strategies. By mastering these points, you can avoid most pitfalls.
About position management:
This is your lifeline. Never operate with heavy or full positions. It is advisable to use the 'pyramid' or 'inverse pyramid' method for scaling in, but the initial position must not be heavy. Personally, I prefer to risk no more than 2% of total capital on a single trade. This means that even if I hit a stop loss, I only lose 2%, which is entirely within an acceptable range.
About stop loss and take profit:
This is your survival guarantee. Before opening a position, you must set stop loss and take profit points and execute them unconditionally.
Stop loss: Don't rely on feelings; base it on technical analysis, for example, set it below key support levels or above resistance levels. Never move or cancel stop losses; that is suicidal behavior.
Take profit: You can take profits in batches. For example, when the price reaches the first target, close half of your position, and set a breakeven stop loss on the remaining half to let profits run. This way, you lock in some profits without missing potential big market movements later.
About technical analysis:
Do not be obsessed with various fancy indicators; mastering the basics is enough.
Candlestick: Understand the candlestick patterns at key positions, such as hammer lines and engulfing patterns; they can tell you about the shifts in buying and selling power.
Trend: Always go with the trend, do not attempt to catch bottoms or tops. Only go long in an uptrend and only short in a downtrend. When the market is in a sideways range, take a break and wait for direction.
Support and resistance: This is the core of the core. Look for long opportunities near support levels and short opportunities near resistance levels; your win rate will greatly increase.
Finally, here are some deadly pitfalls to avoid:
Frequent trading: Do you get itchy hands if you don't trade for a day? This is a problem that needs to be addressed. Most of the time, the market is in disorderly fluctuations, and high-quality trading opportunities are rare. Frequent trading only increases transaction fees and the probability of errors.
Adding positions against the trend (averaging down): This is the most common reason for liquidation. "If it drops, buy more to lower the cost" is poison in contracts. Once a trend is established, you may exhaust all margin while averaging down.
In summary, the core of contract trading is not prediction, but response. Use strict discipline and systematic strategies to cope with market uncertainty.#比特币VS代币化黄金 $BTC
