The key to surviving in contract trading lies not in predicting the market but in adhering to the rules. These core points must be ingrained:
1. Stop-loss is a lifeline, without exception.
Calculate the stop-loss before opening a position, setting a bottom line of 1%-2% of the principal for potential losses, and cut it if triggered—don't wait for a "rebound." Remember: there are few markets that can be recovered, but many that can lead to liquidation.
2. Leverage is a tool, not a gambling device.
Table
Leverage Selection Corresponding Scenario Core Principle
1-5x Clear trend and light position A must for beginners
10-20x Clear short-term signals, quick in and out Stop-loss must be stricter
50x and above Professional-level high-frequency or hedging needs A no-go zone for non-experts
3. Understanding the "opponent's position" is more important than looking at K-lines.
Contracts are a zero-sum game; focus on the long-short position ratio, capital flow, and major player movements. Be cautious of "long killing longs" during market surges and guard against "short covering rebounds" during market crashes.
4. Always leave room for positions.
Single positions should not exceed 10% of the principal; in extreme market conditions, the reserved funds are your leverage for recovery. You can gradually increase positions when in profit (pyramid model), but never average down when in loss.
Core Summary: Surviving > Making quick money
90% of contract losses stem from the combination of "no stop-loss + high leverage + heavy positions." The market always presents opportunities; preserving your principal is essential to wait for your moment.
1. Stop-loss is a lifeline, without exception.
Calculate the stop-loss before opening a position, setting a bottom line of 1%-2% of the principal for potential losses, and cut it if triggered—don't wait for a "rebound." Remember: there are few markets that can be recovered, but many that can lead to liquidation.
2. Leverage is a tool, not a gambling device.
Table
Leverage Selection Corresponding Scenario Core Principle
1-5x Clear trend and light position A must for beginners
10-20x Clear short-term signals, quick in and out Stop-loss must be stricter
50x and above Professional-level high-frequency or hedging needs A no-go zone for non-experts
3. Understanding the "opponent's position" is more important than looking at K-lines.
Contracts are a zero-sum game; focus on the long-short position ratio, capital flow, and major player movements. Be cautious of "long killing longs" during market surges and guard against "short covering rebounds" during market crashes.
4. Always leave room for positions.
Single positions should not exceed 10% of the principal; in extreme market conditions, the reserved funds are your leverage for recovery. You can gradually increase positions when in profit (pyramid model), but never average down when in loss.
Core Summary: Surviving > Making quick money
90% of contract losses stem from the combination of "no stop-loss + high leverage + heavy positions." The market always presents opportunities; preserving your principal is essential to wait for your moment.
