1. The direction is the foundation of contracts; a misjudgment leads to a complete loss. It is necessary to anchor on trend signals rather than subjective guesses. The switch between long and short must resonate with technical and fundamental analysis. In uncertain markets, it’s better to stay in cash than to act blindly. Accurate direction is the prerequisite for profit.

2. Mindset is the bottom line of risk control; greed and fear are the enemies. Avoid chasing gains and increasing positions when profitable; do not stubbornly hold on during losses. Maintaining emotional stability is essential to adhere to trading rules. A collapsed mindset leads to strategy chaos. A steady mindset is key to long-term survival.

3. Position size is the lever valve; its heaviness determines life or death. When the trend is clear, moderate position increases are appropriate; in volatile markets, keep positions light for testing. No single position should exceed 30% of total funds. Position management essentially controls risk exposure and avoids leverage backlash.

4. Correct direction, proper mindset, and position size determine profit and loss range. All three are indispensable. A correct direction but chaotic mindset can lead to early exit; a stable mindset but heavy positions risk liquidation. Only when all three are aligned can a profit cycle be achieved.

5. The direction needs dynamic adjustment; mindset requires deliberate cultivation; position size should be flexible. Markets are volatile. When trend reversals occur, stop loss and switch accordingly; when profits are retraced, stay focused and steadfast. Adjust position size according to signal strength, rejecting static thinking.

6. Core logic: direction as the spear to pierce market fog; mindset as the shield to resist emotional interference; position as the ruler to measure risk boundaries. When these three work together, one can both attack and defend in the contract market, achieving sustained profitability.