1. Awe of risks

1. First of all, you must understand that 90% of people will lose in risky market investment. If you want to win, you must work harder and endure more anti-human rules.

2. When you start a trade, don't think of it as your last trade. (Specifically for contracts)

3. Going all in is a gambler's behavior

4. You should spread your chips to ensure that you can make multiple transactions

5. The smaller the loss, the better, because we are playing in the crypto circle, which is a 365-day * 24-hour casino and there is no limit on the rise and fall. So risks and profits coexist.)

2. Risk Priority

1. When you dream about how much you can earn, you often forget how much you will lose if your wish fails.

2. If you have a strong desire to get rich in one transaction, there is no doubt that you will place a large position.

3. Therefore, you should calculate how much money you will lose before opening a position.

4. Prioritize risk over reward

Three position orientation/stop loss orientation

1. A stupid way is to assume that you have $10,000 and invest 1% of your total capital each time you open a position. Make 100 trades.

2. You can directly set the amount of position loss you are allowed to lose for each order. A more reasonable method is to set the same stop loss amount for yourself each time. Suppose you open an order with a principal of 1,000 and the amount you are allowed to lose is 100u. Then you can lose more times and feel the market direction more often.

3. Before your trading system matures, the stop loss space should not exceed 1% of the total position each time. (This can be done by setting the take profit and stop loss directly when opening or placing an order)

4. Consistent Positions

1. If you use the same trading strategy, the stop loss space for each transaction should be roughly the same. This can ensure the consistency of positions.

2. Avoid changing your position from large to small.

3. The position is large at first and then small. This is usually because of losses (repeated failures make people less and less courageous). Then, even if you make profits many times later, it is difficult to make up for the previous losses.

4. The position is small at first and then large. This is usually because of profit. As you win repeatedly, you become more and more courageous. If you don't set a stop loss when the position is large, it is easy to lose all the previous profits.

Five: Disciplined Trader

1. Without discipline, rules are meaningless

2. What can make you stable profit is not the trading strategy or a complete set of trading rules. It is the discipline of strictly enforcing any trading rules.

3. Discipline requirements. If the direction is wrong, stop loss decisively instead of mentally. If the position is too large to the point where you can’t afford to lose, it is easy to stop loss emotionally.

Summarize:

1. If you think that these rules are meaningless and just talk in books, and it is not as good as full position and heavy position. Then, unfortunately, only after many big losses, you will really understand.

2. Fund management or risk management is the first element of trading

3. Only a very small number of people have enough capital to make a comeback after a big loss.

4. Most people leave the market with a loss

There is nothing new on Wall Street. History always repeats what happened today in the futures market. It has happened before and will happen again in the future.