Doing contract trading, the key to survival is not predicting the market, but sticking to the rules. These core points must be ingrained in your bones:
1. Stop-loss is the lifeline, no exceptions
Before opening a position, calculate the stop-loss first, set a bottom line with a loss of 1%-2% of the principal, and cut when triggered, don’t wait for a "pullback". Remember: there are few markets that can be recovered, many that can lead to liquidation.
2. Leverage is a tool, not a gambling device
Table
Leverage Selection Corresponding Scenario Core Principle
1-5 times Clear trend, light position Must be selected by beginners
10-20 times Clear short-term signals, quick in and out Stop-loss must be stricter
Above 50 times Professional-level high frequency or hedging needs Non-beginner restricted area
3. Understanding the "opponent's position" is more important than looking at K-lines
Contracts are a zero-sum game, pay attention to the long and short positions ratio, capital flow, and main force trends. Be wary of "long killing long" during a market surge, and beware of "short covering rebound" during a sharp decline.
4. Always leave room for position
A single position should not exceed 10% of the principal, in extreme market conditions, the reserved funds are the confidence for a comeback. When profitable, gradually increase the position (pyramid model), and resolutely do not increase the position when losing.
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 has opportunities; protecting the principal allows you to wait for your turn.
1. Stop-loss is the lifeline, no exceptions
Before opening a position, calculate the stop-loss first, set a bottom line with a loss of 1%-2% of the principal, and cut when triggered, don’t wait for a "pullback". Remember: there are few markets that can be recovered, many that can lead to liquidation.
2. Leverage is a tool, not a gambling device
Table
Leverage Selection Corresponding Scenario Core Principle
1-5 times Clear trend, light position Must be selected by beginners
10-20 times Clear short-term signals, quick in and out Stop-loss must be stricter
Above 50 times Professional-level high frequency or hedging needs Non-beginner restricted area
3. Understanding the "opponent's position" is more important than looking at K-lines
Contracts are a zero-sum game, pay attention to the long and short positions ratio, capital flow, and main force trends. Be wary of "long killing long" during a market surge, and beware of "short covering rebound" during a sharp decline.
4. Always leave room for position
A single position should not exceed 10% of the principal, in extreme market conditions, the reserved funds are the confidence for a comeback. When profitable, gradually increase the position (pyramid model), and resolutely do not increase the position when losing.
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 has opportunities; protecting the principal allows you to wait for your turn.
