Summary of the correct opening mindset for contract trading.

1, Determine the stop-loss amount (expected trading costs) and expected profit amount (profit-loss ratio greater than 2). Don’t think about making lots of money all at once. Reduce expectations—cut one large profit into several smaller profits ).

2, Determine leverage and position size: (long-term, medium leverage, small position size or high leverage, extremely small position size ), (short-term, high leverage, large position size ).

3, Major trend (1 hour, 4 hours, 15 minutes ). For example, reversal upward: the trend is an uptrend (don’t look too far into the trend; otherwise you’ll get liquidated before you even reach it).

4, Entry point—taking going long as an example: the stop level after a selloff of a certain smaller timeframe (1 minute, 5 minutes, 15 minutes. For going short, it’s the opposite: the stop level after a rise.

5, Set the stop-loss, placing it below the stop level.

6, Take profit, 2 times or more, or just set it at the previous resistance level.

7, Move the stop-loss: after you’re in floating profit, change the stop-loss to above the cost price (or close based on candlestick divergence).

8, Do intraday trading; don’t hold overnight—otherwise you won’t be able to sleep.

9, Summarize and review
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