The Core of Contract Trading: Six Principles for Steady Profit

Contract trading is not a short-term game for instant wealth, but a long-term battle of patience. My experience tells me that success is not based on luck, but built on a set of 'practical' rules. Over the years, I have crawled out of the market's pitfalls and gradually summarized these principles, which helped me grow from 3000U to 280,000U.

1. The approach can be aggressive, but must never be reckless

With a capital of 3000U, I split it into 10 parts, trading 30U each time, using 100x leverage. If the direction is right, the profit doubles; if the direction is wrong, immediately cut losses, do not contest wins or losses with the market. Remember, the essence of contracts is to control risk, not to blindly pursue aggression.

2. Be decisive with stop-losses

Do not harbor the illusion of a 'rebound', nor expect a 'lifesaver order'. The market will not change based on your expectations; a second of hesitation could double your losses. Therefore, once a loss occurs, get out immediately, without mercy.

3. Stop trading after five consecutive losses

Losses are normal, but emotional trading will only accelerate your losses. If you experience five consecutive losses, turn off your computer, stop trading, and temporarily leave the market. Return after a while, and a clear market structure will present itself, helping you avoid making wrong decisions amidst emotional fluctuations.

4. Profits must be realized

Earning 3000U is good to say verbally; realizing half of the profits into your wallet is true profit. The essence of contracts lies in realization, not just the increase in numbers on the account. As long as you maintain a good habit of profit realization, in the long run, you will gradually accumulate wealth.

5. Focus on trends, avoid ranging markets

Trends are the source of profit in contract trading, while ranging markets are breeding grounds for losses. If the market is unclear, wait first; enter the market only when a clear structure appears. Trends provide stable profit opportunities, while ranging markets are filled with uncertainty and risk, so do not participate blindly.

6. Strictly control position size, with a maximum position never exceeding 10%

Keep the position size for each trade at 10%, experimenting with small positions. Even if losses occur, they can be tolerated. True long-term contract trading is not about going all-in, but about disciplined and continuous participation. Maintaining reasonable position sizes is essential for your long-term survival in the market.