Contract trading, in simple terms, is about using small funds to chase big gains; losing money is common. But after setting a stop-loss, people diverge—some chase orders wildly, others press the pause button. My view is that once you hit frequent stop-losses, you must stay calm. Stop trading, readjust your strategy, and don’t skip this step.
The second point that many people tend to overlook: don’t crave overnight riches. Trading is not a shortcut to quick wealth. When facing losses, you must keep a steady mindset, avoid rushing to place orders, and never go all-in. This only pushes you into a fire pit.
Seeing the big trend clearly is crucial. Once the market shows a one-sided trend, you should follow the trend. Trading against the trend is a breeding ground for losses—whether you’re a rookie or an experienced trader, it’s easy to fall into this trap. When a market trend forms, forcing a reversal will definitely teach you a harsh lesson. Learning to follow the trend patiently and waiting for the right opportunity is the right way.
The risk-reward ratio must be well managed; otherwise, you simply won’t make money. Profits must exceed losses, with at least a 2:1 ratio, making such trades worth considering.
Frequent trading is a big taboo in contracts. If you’re not yet an expert, you need to control the impulse to open orders recklessly. Especially for beginners, who are often passionate about the market and eager to catch every wave, most seemingly good opportunities will bite back.
Only make money on what you understand. This is very important—profits beyond your comprehension tend to fall away faster.
Never hold onto losing positions. This is the first step into the abyss. Especially for beginners, setting a stop-loss is a must. Holding onto losing trades is like drug addiction— the more you hold, the more addictive it becomes, and the more you lose. Reiterate: do not hold onto losing positions.
The last point—once you make money, don’t get cocky. Getting arrogant will definitely lead to losses; this is the iron law of the market.
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DAOdreamer
· 01-03 03:52
People who keep chasing orders after stop-loss are probably already bleeding heavily...
When frequent liquidation happens, it's time to reflect on whether you're playing against the trend.
Honestly, money outside your understanding is just a hot potato to hold.
Dealing with margin calls... once you've experienced it, you know how desperate it can be.
Is following the trend really that difficult? Why insist on going against it?
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AirdropHunterWang
· 01-03 03:44
The key is to stay patient and not be led by the market
Frequent stop-loss and chasing orders? That's just asking for death. Calm down and rethink your strategy
Going with the trend is the way to survive; going against it will only get you trapped, really
Start with a risk-reward ratio of 2:1, otherwise what's the point of making a profit
Beginners are most likely to open trades frequently. Seeing volatility makes them itchy, and most of the time, they're just giving money to the market
Only those who understand can make money; otherwise, profits will run faster than losses
Holding onto trades is truly addictive; the more you hold, the more hooked you get, and in the end, you might lose everything
When you make a profit, take it and stop. The only outcome of greed is one word—loss
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DAOplomacy
· 01-03 03:35
ngl the risk-reward framework here is arguably underselling the path dependency issue... like sure, 2:1 ratio sounds optimal on paper but the sub-optimal incentive structures kick in the moment you're down. historical precedent suggests most retail get liquidated before they even process the game theoretical implications.
Contract trading, in simple terms, is about using small funds to chase big gains; losing money is common. But after setting a stop-loss, people diverge—some chase orders wildly, others press the pause button. My view is that once you hit frequent stop-losses, you must stay calm. Stop trading, readjust your strategy, and don’t skip this step.
The second point that many people tend to overlook: don’t crave overnight riches. Trading is not a shortcut to quick wealth. When facing losses, you must keep a steady mindset, avoid rushing to place orders, and never go all-in. This only pushes you into a fire pit.
Seeing the big trend clearly is crucial. Once the market shows a one-sided trend, you should follow the trend. Trading against the trend is a breeding ground for losses—whether you’re a rookie or an experienced trader, it’s easy to fall into this trap. When a market trend forms, forcing a reversal will definitely teach you a harsh lesson. Learning to follow the trend patiently and waiting for the right opportunity is the right way.
The risk-reward ratio must be well managed; otherwise, you simply won’t make money. Profits must exceed losses, with at least a 2:1 ratio, making such trades worth considering.
Frequent trading is a big taboo in contracts. If you’re not yet an expert, you need to control the impulse to open orders recklessly. Especially for beginners, who are often passionate about the market and eager to catch every wave, most seemingly good opportunities will bite back.
Only make money on what you understand. This is very important—profits beyond your comprehension tend to fall away faster.
Never hold onto losing positions. This is the first step into the abyss. Especially for beginners, setting a stop-loss is a must. Holding onto losing trades is like drug addiction— the more you hold, the more addictive it becomes, and the more you lose. Reiterate: do not hold onto losing positions.
The last point—once you make money, don’t get cocky. Getting arrogant will definitely lead to losses; this is the iron law of the market.