Domestically speaking, the very famous godfather of futures: Tian Yuan

Internationally: John Murphy is very powerful in theory~

Here I will introduce you to: Chad Dunnis

---A legend in the futures market (he is very powerful)

Richard Dunnis has now retired, but his legendary experience in the futures market He is still praised by his peers. The dozen of apprentices he brought out personally are a new force in the U.S. futures market, managing billions of dollars in funds. He started his own business with only $1,600, and by the time he retired, his fortune had reached hundreds of millions. In the late 1960s, Dennis worked as an odd job at an exchange and gradually became interested in the futures market.

In the summer of 1970, he felt that the time was ripe and was ready to personally try his hand in the futures market. He borrowed US$1,600 from relatives and friends and wanted to buy a seat on the exchange. However, due to lack of funds, he could only buy a seat at the small "US-China Exchange". He spent US$1,200 and left the remaining US$1,600. The principal deposit is only US$400. It was this $400 that was miraculously turned into more than $200 million by Dennis. In the words of his father: "Richard made good money with the four hundred dollars."

Dennis was not born to do futures. After graduating from high school, he found a temporary job at the exchange with a monthly salary of US$40. He learned while studying and quietly opened an account to trade futures. At the beginning, I lost more money than I earned, and one month’s salary was not enough to compensate for one hour. But fortunately, the amount he did was very small, and the money he lost was very limited. When Dennis looked back on that time many years later, he felt that the tuition fee was a good deal and he learned a lot. At that time, he was not yet 21 years old and could not directly enter the exchange to place orders. His father stood inside to call the price for him, while he directed from outside. I worked on and off like this for two years and lost about 2,000 yuan. The day he turned 21, his father breathed a sigh of relief and said: Son, go ahead and do it yourself. I know nothing about this business.

Dennis’s experience of early trading is: First, it is better to lose more and win less when you first start trading, because at that time you have less funds on hand and your losses are limited. If you just start losing, the price will be much higher. Secondly, don’t be paranoid and be flexible. Some people can easily fall into paranoia. If the first big profit comes from being a long-term investor, then he will only like to make buying orders for the rest of his life. Otherwise, you will only be short-selling your whole life. Inflation was severe in the 1970s, and commodity futures only rose but did not fall for several years. Some people don't make any money themselves, but when they see someone around them making a lot of money, they develop the habit of being long. This is very harmful.

After Dennis entered the "US-China Exchange", he did very well in the first three months. Catching up with the corn pests that year, he quickly turned $400 into $3,000. He was originally going to college, but after only one week of classes he decided to drop out and focus on futures. One day he placed a bad order and lost $300 in one fell swoop. Feeling dissatisfied, he changed direction and placed another order, and soon lost hundreds more. He gritted his teeth and then turned around and entered again. Just like this, he lost 1/3 of his principal in one day. Since then, he has learned to master the rhythm. When you are not satisfied with losing money, you should quickly cut off the order and leave the market, go home and take a nap, and wait for a while before making your next decision. The lesson he learned from losing money that time was profound. Dennis never added orders due to losses or rushed to make money again. In addition, losing money will affect a person's judgment, so it is best to wait for a while before placing an order.

Another point that Dennis learned is: when placing orders, you must follow the trend. The stronger the trend, the easier it is to make money. He works as a trader on the exchange, mainly making money by following the market. Many people are always eager to leave the market when they have profits, even when the market is at the daily limit, they are eager to make profits and exit, for fear that the money they earn will be lost. At this time, Dennis always takes the order and always makes a lot of money the next day. In 19T8, Dennis decided to leave the exchange and place orders from the office. A few years ago, the futures market was relatively single, mainly commodity futures. By the late 1970s, futures markets such as foreign exchange and securities had gradually matured. In order to make profits from more markets, Dennis decided to withdraw from the commodity exchange site and place orders off-site. In the first year, Dennis lost some money because he was not used to it. Later, he discovered: First, placing orders away from the market is no longer as fast as placing orders on the spot, so he has to look further and make more long-term money. Secondly, there are also differences in judging the direction. You can feel it on the spot, for example, there are a few people who are always wrong when the market turns. When you know that they are long or short at the same time, you will naturally have a more correct judgment on the direction of the market. After leaving the market, this information is gone, and you have to find another basis for judging the market.

The key to Dennis’s success lies in summing up experience and lessons in a timely manner. He is basically self-taught, and all his experience and knowledge are learned from the market in practice. Most people are ecstatic after making money and feel disheartened after losing money. They rarely think about why they made money and why they lost money. Dennis always reflects carefully after losing money, finds out where his mistakes were, and tries not to make them again next time. When making money, think calmly about where you are right and how to apply the same method to other markets. Over time, you will naturally form your own unique way of making orders.

The second is risk control. From the first time he made a mistake and lost 1/3 of his principal, Dennis learned about risk control.

Generally speaking, a good order will make a profit soon after it enters the market. If an order still loses money after a week or two after entering the market, it is probably in the wrong direction. Even if you turn around and get a draw, you may still be wrong after such a long time. Always prepare for the worst after placing an order, and things you think are impossible will often happen. Therefore, it is necessary to set a good price for cutting off orders, and resolutely cut off after the price.

It is very dangerous to fish for the bottom and pocket the top. Dennis believes that being able to judge buying and selling is only the direction the market may go, but how far it goes in a certain direction must be determined by the market. Dennis occasionally made exceptions to try to get the bottom or the top. For example, when the price of sugar rose to 60 cents, he entered the market to sell short and made 13 cents a pound along the way. But he later found the bottom near 10 cents, and tried and failed again and again. According to him, he lost more money than he made by shorting the top. Therefore, the result of going against the trend is still more losses than gains.

Dennis believes that the most difficult times are also the most promising times. Sometimes after losing money, the last thing you want to do is think about the market, and often the best trading opportunity slips by quietly at this time. Only by seizing the opportunity to make money, making enough profits, and making mistakes can you afford to lose money. On the other hand, you must learn to choose the best time to place orders. Dennis probably estimated that 95% of his profits came from 5% of good orders.

Missing good opportunities will affect performance, but filtering out some orders that should not be entered can increase profitability