Trading contracts, in simple terms, is about using small funds to chase bigger returns, but this also means the risk is doubled. Losses are almost inevitable here; the key is how to face them.

Interestingly, after a stop-loss, two types of people emerge. One starts to obsessively review their trades, with more frequent stop-losses leading to more frequent trades, as if trying to make back all the losses; the other chooses to stay calm, stop trading, and adjust their strategy properly. My advice is, if you frequently hit stop-losses, that’s already a signal — it’s time to hit the brakes.

Don’t think about getting rich overnight; this mindset in contract trading is just giving away money. When facing losses, the biggest test is your mentality. Many people fail because they refuse to stop, always thinking of quickly recovering, then piling in with heavy positions one after another, and you can guess the final result.

Seeing the big trend clearly is more important than anything else. When a trend is forming, go with the flow; don’t trade against it. Whether you are a beginner or an experienced trader, the habit of trading against the trend is easy to develop, but once the market gains momentum, trades against the trend often end badly. Learn to wait patiently for opportunities — this is the right way.

The risk-reward ratio must be well managed; otherwise, no matter how hard you try, you won’t make money. Ensure every profit is greater than the loss, and at least maintain a 2:1 ratio before opening a position — this is the basic risk control threshold.

Frequent trading is a taboo in contracts. If you’re not an expert, you must control the impulse to open trades blindly. Especially for beginners, full of enthusiasm for the market, afraid of missing any opportunity, but most so-called opportunities are actually traps for losses.

Another key point — only make money within your understanding. Don’t touch markets beyond your comprehension.

Holding onto losing positions is a forbidden zone in contracts, especially for beginners. Once you start holding, it’s like stepping into an abyss. Stop-loss is crucial — no need to overemphasize it.

Finally, don’t get cocky when you’re making profits. If you get arrogant, you will definitely lose. This isn’t some profound principle; it’s just the real market law.