Many traders blindly enter the market and enter the futures market in order to get rich immediately or even overnight, but the fact is always cruel, haste makes waste, and the success of trading still requires you to study hard and have extraordinary perseverance and talent to obtain stable and reasonable income.
2. Lack of overall awareness and incomplete market analysis.
Technical analysis and fundamental analysis are two basic tools to study the futures market. You can learn about market trends through daily charts, and even weekly and monthly charts can get a more comprehensive perspective from longer-term trend charts. From a fundamental point of view, observing long-term trends can also ensure you have a more comprehensive understanding of what is happening in the market. Focusing on the overall situation, starting from a small place and not understanding and tracking the market will lead investors to become frogs in the well.
3. Do not make a trading plan and trade at will.
Plan your trade, trade your plan. If there is no detailed action plan before trading, then traders have no clear and specific understanding of how to enter the market, how to exit, how much they can lose and how much they can earn. Such a transaction can only follow the feeling and often lead to failure.
4. Trading against the trend
Human nature likes to buy low and sell high or sell high and buy low. Unfortunately, the futures market has proved that this is not a means of profit at all. Investors trying to find the top and bottom often go against the trend, making buying high and selling low a harmful habit.
5. Large transaction volume and improper fund management.
Part of the reason for the success of the transaction can be attributed to proper fund management, rather than concentrating all chips on risky "family" transactions.
6. No stop loss
In futures trading, operational errors are common. The loss itself is the cost of the transaction. Loss trading is normal and inevitable, and it is part of your whole trading process. However, once you make a mistake in the direction, refuse to admit your mistake, and can't get away with breaking your wrist, it may cause great losses. What's more, if you lose money, you will increase your position and dilute the cost. Not knowing that this is a mistake will accelerate your failure.
7. Make a profit prematurely
Successful traders pay attention to "stability", "accuracy" and "reality" The so-called "malicious" includes the connotation of never letting go when seizing the opportunity and trying to expand the results to win a great victory, that is, following the general trend, kayaking downstream and striving for a great victory. Only by correctly judging the general trend and making warehouse receipts win, can we make up for the losses that occurred before and win. However, in reality, many investors do the opposite, and most of them just "stop winning" in time and settle down!
8. Day trading
Futures trading is a game of trial and error. The more you do, the greater the probability of making mistakes and the more transaction costs you bear. Successful ultra-short athletes are an exception, but you should know that they are very few, have certain talents and have experienced professional training. When they are old, they will also face the pain of transformation.