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The essence of contract trading is simple: take relatively small risks to achieve greater rewards.
But the reality is, most people fail at this. Losing money itself isn't scary; what's scary is how you react after losing money.
I've seen two types of people. One is someone who starts to panic immediately after stopping out, wildly opening new positions in an attempt to recover instantly. The other is someone who presses pause right after a stop-loss—drinks a glass of water, smokes a cigarette, closes the software, and lets their mind cool down for two hours. And the result? The ones who last the longest are usually the latter.
This brings us to a key question: what to do when you keep hitting stop-losses? The answer is simple—pause. It's not that you're slow to react; the current market conditions simply don't suit your style. Forcing trades against your intuition will only teach you a harsh lesson with your capital.
Many treat trading as a tool for overnight wealth, but the more you think that way, the easier it is to get wiped out by the market. When losing, thinking about doubling back or going all-in on a position, contracts act like a mirror—mercilessly amplifying your irrationality.
The power of trends far exceeds most people's imagination. When a one-sided trend appears, the smartest move is to go with the flow—don't always try to catch the top or bottom. Counter-trend orders are almost always just giving warmth to the market. Whether you're a beginner or an experienced trader, the market's lessons are fair to everyone.
There's also an overlooked detail—risk-reward ratio. I rarely look at trades with less than 2:1. You might have a low win rate, but over the long term, losing big and winning small will eventually wipe out your account. This isn't toxic positivity; it's a rule understood by everyone who survives.
Frequent trading is the biggest trap for contract beginners. Opportunities to make money don't come from opening more and more positions; the truly valuable trades are just one or two a day. Only earn within your understanding. If you don't understand it, let the opportunity pass—there's no shame in that.
Regarding holding positions—don't hold. That's not persistence; that's heading into the abyss. If a beginner doesn't cut losses once, they might be doomed forever.
And one last point: don't get complacent after making a profit. A small win often leads to the next trade losing, which is almost a market rule.
The underlying logic of trading is method plus discipline. Slow down, be more stable, and you'll last longer.