Investors in financial futures trading mainly make profits by forecasting and using the future price fluctuation trend. In this way, when we see the price trend correctly, the price forecast will have actual effect only after we send out the trading order to enter the futures market and confirm the trading, and the profit and loss after the trading order is settled and closed is the final result. If there is only psychological prediction and no actual order, even if the prediction is accurate, it will be unprofitable, which will only increase the mental pleasure of traders. The only way to turn psychological prediction and judgment into real profit is to make a decision to place a trading order quickly after seeing the right time, so that the prediction can become a real investment. At this time, as long as the forecast is accurate, the profit will easily become a reality.
2. Use various stop-loss orders to limit trading losses.
According to this principle, traders must enter two trading orders at the same time every time they establish a trade. One is to initially establish a trading order for buying and selling; The other is to prevent the losses caused by the transaction results from being strictly limited to a certain range. If the market trend changes in the desired direction, profits will also accumulate.
3. It is forbidden to place an order for the purpose of cost sharing.
Cost sharing is to continue to buy contracts when prices fall, so as to reduce the cost of holding long contracts. This practice is often used in stock trading and has its positive effect. In futures trading, the consequences of this approach are often more losses and greater risks. Therefore, in futures trading, we should try to avoid the practice of sharing costs, especially for small investors.
4. Don't give instructions that exceed the risk limit.
The risk limit of general traders applies to l/ 10 of available risk funds. Once this quota is determined, it must be strictly observed and cannot be broken at will. Because once this restriction is broken, it is likely to get out of hand, causing great risks, which are beyond the range of risks that investors with small capital can bear. In addition, breaking the original plan at will is not conducive to rational and restrained participation in futures trading, and it is easy to follow blindly, which is a hidden danger of trading losses.