Today, I want to discuss with my brothers who engage in short-term contracts a core point that most people do not pay attention to, but it directly determines whether an account can stabilize profits: the opening position, which is far more important than judging the direction of price movements.

Usually, when everyone reviews and monitors the market, they are completely focused on one question: Should I go long or short next? They spend a lot of time studying indicators and judging trends, always feeling that as long as they get the direction right, they can make money. However, after practical trading for a long time, one will realize that whether a trade ends up being profit or loss often does not stem from a wrong long or short judgment, but from a poor entry point selection.

Let me give a very realistic example: the same prediction of a market rise can have a drastically different result depending on the entry method. Some people see the market suddenly surge and, fearing they might miss the rally, they rush to chase the price high, entering at a relatively high point, thus requiring a large stop-loss. If there is a slight pullback, they are easily at a loss, and this trade's risk-reward ratio is completely disadvantageous. In contrast, more calm traders do not rush to chase high but patiently wait for price to retrace to a key support level before entering in line with the trend, keeping the stop-loss range very narrow. This limits potential losses while the upside profit potential remains unchanged, resulting in an optimal risk-reward ratio. Both have the same directional outlook, yet one suffers a significant loss while the other makes a substantial profit—all due to the opening position.

I have repeatedly reminded VIP members of one thing: it's better to miss a market move than to blindly chase and open a position at a high price. A quality entry position fundamentally reduces the risk to the lowest level in advance. The smaller the stop-loss setting, the more attractive the risk-reward ratio under the same market conditions; consistently sticking to trades with high risk-reward ratios, even if the win rate is not top-notch, will lead to steady profits over a longer period.

In contrast, most beginners who have just started trading contracts often experience anxiety about missing opportunities. As soon as the market makes a slight move up or down, they panic, feeling they will completely miss out if they don’t enter the market right away, ignoring whether the current price is at a pressure or support point, and they impulsively jump in with large positions. Often, shortly after the transaction is completed, the market merely undergoes a normal pullback, stops them out, and after they cut losses and leave the market, it continues in the direction they originally predicted. In the end, they are left wondering why they lost money despite not being wrong about the trend; the issue is not with the direction but with the terrible entry point that doomed the trade.

In short-term trading, the competition is never about who predicts price movements more accurately, but rather about who can stay composed and wait for the moment when the risk is lowest and the cost performance is highest before taking action. The entry point directly locks in your maximum single trade loss, and the loss limit ultimately determines how much profit you can make from that trade.

There is no need to always think about capturing every market movement; abandon the bad habit of chasing positions, and patiently wait for quality entry points at support and resistance. By fully understanding the importance of the entry point, you will see fewer stop losses, a steadier holding mentality, and trading will naturally become much easier.

Understand the importance of entry points; if you find this content useful, please like, bookmark, and share it with friends who love to chase positions but end up losing. I share practical short-term trading insights every day to avoid common trading pitfalls.

Official Account: Big Bull Talks Market

⚠️ Disclaimer: This is only a sharing of personal practical experience and does not constitute any investment advice. Contract trading carries extremely high risks; always operate with light positions and set stop losses.

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