Why it is not recommended to trade contracts, because 99% of people are just fodder.

Most people have neither experience nor skills. Even if they have some experience, in extreme market conditions or under the manipulation of exchanges, it is hard to escape the fate of 'accumulating for many days and returning to zero in one day.'

You may make a profit in the short term, but over time, walking along the riverbank, how can one not get wet shoes? If you can't take a cut once, you will cut multiple times. Exchanges are not afraid of you making money; they are afraid of you not playing.

Your trading data, positions, and liquidation points are all well-known to the exchange, but there are always greedy people who make excuses for themselves, do not set stop losses, and do not control their positions.

Last year, a friend came to me with 2700U, wanting to recover his losses. I didn't discuss complex indicators with him, only gave him three 'rules for survival.'

He followed them for three months, and his account grew to 50,000U, without a single liquidation. Whether you can understand these three rules depends on your respect for the market.

First, divide your funds into three parts; survival comes first.

I told him to divide the 2700U into three parts, each 900U, which cannot be used for anything else.

This is my painful lesson:

One part for short-term trading, opening positions at most twice a day, and closing the software after trading to avoid greed;

One part to wait for trends; if the weekly line does not show a bullish trend, patiently wait. In a volatile market, random movements are just free money; one part is for emergency funds, to add positions when the market changes suddenly, to maintain market standing.

Second, trend is king; the rest should observe.

I suffered heavy losses during fluctuations, and later recognized only three entry signals: if the daily moving average does not show a bullish trend, firmly hold a cash position;

Only when the market volume breaks the previous high and the daily closing is stable, do I enter with a small position; when profit reaches 30% of the principal, withdraw half, and set the remaining to a 10% trailing stop.

Third, lock emotions, execute mechanically.

Make a plan before entering the market and execute strictly: set stop loss at 3%, and close at the point; when profit reaches 10%, pull the stop loss to the cost price; all further profits are gifts from the market;

Shut down the computer at 12 o'clock every night, no matter how tempting the K-line is, do not look. The market often has opportunities, but if the principal is gone, then nothing will be left. First, do well with these three rules, then study others.