According to statistics, accounts that have made profits in the futures market for more than one year do not exceed 5%. This data may not be credible, but the information revealed in it is worth further study. Indeed, few individual investors can make long-term money by speculating in futures. Since someone loses money, someone must make money! In the futures market, exchanges and futures companies charge transaction fees, and only they do not bear any risks and lie down to earn handling fees. The rest of the money was earned by some traders and bookmakers. In fact, a few people earn the money of most people.
Futures are not like stocks. When a stock is quilted at a high point, it can hold a waiting opportunity for a long time, and it can be untied as long as the stock price rises again. However, futures losses to a certain extent, insufficient margin, no funds to continue to supplement, may directly explode. More than 80% investors will lose more than half of their principal within six months. For many people, the loss of principal is just a blink of an eye, and the futures market may not give you a chance to turn over.
Speculation in futures is risky, easy to make money and easy to lose money. Traders can actively reduce risks through technical analysis, experience and grasp of trends, but it is impossible to completely avoid risks. Trading is anti-human, and in a market with its own leverage, the weakness of human nature will be magnified. As long as there is a big operational error or market mutation in futures trading, it is enough to make unlucky investors be swept out of the house overnight. But the existence of the market itself is reasonable, and there is no denying that some people who have been doing futures for a long time are profitable.
Many cases of speculative futures are due to these two points:
1. No stop loss. Because of the instability of the futures market, traders can lose all their money if they make one loss out of ten. Therefore, speculation in futures must learn to stop loss, so as to survive in the futures market for a long time.
2. Gambling is too big, operating against the market. The market is unpredictable! It is not advisable to be blind and arrogant. Never operate against the market trend. Traders can follow market trends through technical analysis, but the top and bottom of the market can never be predicted. Don't put all your eggs in one basket at this time.
For friends who have experienced the ups and downs of the futures market and are ready to enter the futures circle, Xi Cai Jun's suggestion is to study the laws of the market, don't be led by greed in human nature, and always remember to stop loss and take profit. The setbacks on the investment road will eventually make us grow up, learn to reflect while learning, and constantly adjust and improve our investment plan by using accumulated experience.