The end of the lazy-style updates, next I will start my 'dynamic update plan', stay tuned and don't miss it～
"How to Avoid Contract Trading Risks"
To mitigate contract trading risks, focus on three core principles: "controlling risk exposure, establishing trading discipline, and enhancing understanding." Key measures are as follows:
1. Strictly control position size and refuse excessive leverage.
- The margin for a single position should not exceed 5%-10% of total funds, to avoid "full position betting," which prevents a single contract's volatility from directly causing significant losses.
- The leverage ratio should match one's own risk tolerance: beginners are advised to start with leverage of 5 times or lower, without blindly pursuing high leverage to amplify profits (high leverage also amplifies loss risks).
2. Always set stop-losses, refuse to "hold positions."
- Set stop-loss levels simultaneously when opening a position (determined by the volatility of the variety and support/resistance levels), and do not cancel stop-loss orders arbitrarily to avoid small losses expanding into fatal losses.
- The stop-loss range should be reasonable: typically not exceeding 1%-2% of the account funds, for example, for a 10,000 yuan account, the single stop-loss amount should be controlled within 300 yuan.
3. Do not operate against the trend, do not chase highs and sell lows.
