Having been in contracts for five years, I have seen too many magical operations: some people chase highs and lows with a principal of 100,000, losing everything in half a month; others cling to the obsession of 'bottom fishing and top escaping', getting beaten from both sides to the point of questioning their lives. But those who can thrive in the market as 'evergreens' never rely on luck or gamble, but adhere to three ironclad rules bought with hard-earned money—today, take out the most valuable insights; those who understand this can at least avoid three years of detours!
1. Profits are only yours when you hold on tightly!
One of the most common mistakes new traders make: feeling elated after a 10% rise, taking a screenshot to celebrate 'becoming a legend', only to turn around and be taught a lesson by the market's correction. Remember: in the contract market, profits that haven't been realized are all 'paper wealth', and corrections will never knock on your door in advance.
My practical iron rule: after establishing a position, as soon as the price retraces to the buy price, don't hesitate to exit directly, even if it means earning less; lock in half of the profits as soon as you reach 20%, reducing risk to the minimum; when it rises to 30%, at least secure 15% of the earnings as a base. Never get caught up in 'selling at the highest point'; the market is always capable of higher points, but your capital can't withstand the turmoil. Earning certainty with iron rules is 100 times more reliable than gambling on luck — these five years I've been able to stabilize my profits, relying on the determination to 'take profits when they are good', not on the courage to 'take a gamble'.
Two, stop-losses need to be swift, faster than a scumbag's change of heart!
I've seen too many cases of accounts going to zero, and the root cause is just five words: 'waiting for a rebound to break even'. When a purchase incurs a loss of 15%, you must unconditionally stop-loss and exit, with no excuses! Don’t harbor fantasies like 'what if it rebounds'; these five words have buried countless people's capital.
Let me be frank: even if the market rebounds after you cut losses, it doesn't mean your judgment was wrong; rather, the timing of your entry was off. The market is never short of new opportunities, but it only takes one time to wipe out your account. I've seen people stubbornly hold onto losses, dragging from a 15% loss to a 50% loss, and by the time they face liquidation, they don't even have a chance to recover. Remember: traders who understand stop-losses deserve to talk about profits — as long as you have the green mountains, you can wait for the next wave of market.
Three, it's not scary to sell at a loss; having the courage to buy back is the real skill!
Many people, after taking profits, see the asset continue to rise and slap their thighs regretting 'I sold too early', or feel 'buying back is too embarrassing', resulting in missing an entire market cycle. Brother, in the trading market, 'face' isn't worth much; being able to make money with 'flexibility' is the real skill!
My trading logic: after taking profits, if the asset really declines, that's the best time to add positions — even if it drops back to your selling price, decisively buy back. Don't think of this as 'slapping yourself in the face'; it's called dynamic asset circulation. Transaction fees are just a few points, but missing one opportunity might mean losing out on a doubling market. Last year, I traded a certain asset, took profits, and it dropped 12%, but after buying back decisively, it rose 40%. Just that wave recovered half a year's earnings — in trading, being 'humble' is not scary; missing out is the real loss!
In fact, the essence of contract trading is very simple: it's not about who can make the most in one go, but about who can stay in the market longer. You don't need to have a sharp eye or accurately predict the market, but you must adhere to these three iron rules to survive through countless fluctuations.
After all, a bull market will always come, but the prerequisite is that you must survive until that day. Follow me, I will share more practical details and position management tips to help you avoid those pitfalls that can drain your account. Remember: in the contract market, staying alive is the biggest profit — tomorrow we'll continue discussing more hardcore practical tips, like and bookmark this so you won't get lost next time you want to see it!
