1. Subjective prediction and objective follow-up
The difference between them lies in the extent to which traders exert their subjective initiative. Subjective prediction can buy at a low point, sell at a high point, and objective follow-up can't. However, in actual trading, it is suggested to follow the market trend objectively (such as judging the trend with the moving average system), and then choose the trading opportunity through subjective prediction. First of all, the accuracy of subjective prediction is negatively related to the complexity of the analysis object, so most traders cannot accurately predict the high and low points. Secondly, subjective forecasting requires a high degree of professionalism and experience, but in reality there are not many investors who are familiar with all varieties. Thirdly, objective follow-up is the most effective way to improve the efficiency of investment time, and waiting for the market to participate can avoid trading in oscillation period. Finally, traders use completely subjective prediction, which consumes a lot of energy and does not conform to the concept of simple trading and easy investment. In short, trading should confirm the trend opportunity through objective methods and give full play to people's subjective initiative.
2. Breakthrough follow-up VS retracement follow-up
The market is unpredictable, and investors often try to avoid trading in volatile markets when operating. Therefore, many investors will choose to operate when they break through the key price, but at this time they will face the problems of breakthrough follow-up and withdrawal follow-up. If the breakthrough follow-up is easy to suffer because of the false breakthrough, the retracement follow-up will also face the situation of skyrocketing after the breakthrough and not stepping back on the market. In practice, it is recommended to break through the light warehouse and follow up after confirming the withdrawal. In practical application, variety characteristics and technical characteristics should also be considered. For example, varieties with repeated historical fluctuations or long-short equilibrium can adopt the retracement follow-up method, and varieties that break through in the form of price limit, gap gap or volume increase should adopt the breakthrough follow-up method.
3. Centralized investment and diversified investment
The advantage of concentrated investment is that you can concentrate your energy and funds and give full play to the most advantageous investment quickly. The disadvantage is that stepping on a "mine" is easy to be eliminated. The direct benefit of diversification is to slow down the fluctuation of assets, and the disadvantage is that the income growth is relatively slow. In practice, it is suggested that effective investment should be appropriately dispersed. That is, trading 3 to 5 varieties at the same time, and the specific setting should also consider the investor's trading management mode. First of all, traders have limited energy and funds, so they should give full play to their experience advantages to run key investments. Secondly, when the amount of funds is large, it is necessary to appropriately diversify the investment to control the net return. Finally, in the event of an emergency, the risk control will not affect the disposal speed because of too many varieties.
4. Constant strength and constant weakness and market rotation
When observing the market, sometimes we will see the phenomenon that the strong are always strong or the weak are always weak, and sometimes we will see the phenomenon of variety rotation. In fact, apart from the fundamental factors, the fundamental reason why the trend can be maintained is the money-making effect. The market's pursuit of hot spots will lead to the trend that will not change easily once it is formed, so the market more reflects a phenomenon of constant strength and constant weakness. Variety rotation is often accompanied by plate rotation caused by macro factors and seasonal factors. That is to say, the plate will rotate, but the varieties in the plate are generally constant strength and constant weakness. In practice, market adjustment is often the best time to choose and exchange varieties. Traders should be good at distinguishing strong and weak varieties through various basic and technical analysis methods.
5. Active stop loss and passive stop loss
Active stop loss refers to the stop loss behavior ahead of schedule. Passive stop loss refers to holding when the market does not touch the risk control conditions set in the original plan. Both situations have advantages and disadvantages. Active stop loss gives full play to the initiative of market subjective prediction, which is conducive to reducing losses, but passive stop loss can often reduce the early stop loss caused by subjective judgment and ensure the implementation of the original operation plan. Passive stop loss (planned stop loss) is usually used in actual combat, and active stop loss (early stop loss) is used in special circumstances. The premise is that the operation plan is a plan formed after careful and sufficient investigation before implementation. In addition, the special conditions of active stop loss should be sorted out first when trading.
6. One-time operation and batch operation
An operation includes an opening and a closing. One-time operation is suitable for those with high recognition of the current operating price. If the future market is unpredictable, batch operation can be adopted. In actual combat, opening positions can be carried out in batches, but closing positions is best done at one time. Because in trend trading, it is a more appropriate strategy to test the position first and then add the position. However, in the case of short-term trading or limited target space, it is not appropriate to open positions in batches. Generally speaking, it needs to be decisive, and playing in batches is equivalent to "extending the front line", which is not conducive to the opening of new trading schemes.
7. Keep still and scroll.
The market fluctuates every day, and short-term price fluctuation is easy to cause liquidation impulse. Is it to keep the position unchanged according to the established trading direction, or to increase profits through rolling operation while keeping the direction unchanged? It is impossible to judge its level from the strategic method, but in actual combat, it is still recommended to stick to the position and not change the plan and implementation conditions. Because there are more and more transactions, it also means that the possibility of losing positions is increasing. If the market fluctuates too much and needs rolling operation, you should also think about it before closing the position. If you make a mistake, how to make up the original position.
8. Heavy warehouse operation VS light warehouse operation
Position management is the core issue of fund management. It's easier to make heavy positions or light positions when trading. In addition to their own financial factors, we should also consider the affordability of account withdrawal and the psychological impact on traders. Heavy positions will increase the fluctuation of accounts and increase the psychological burden of traders. Appropriate positions can make traders' thinking and judgment in a relatively comfortable state. In actual combat, the mainstream view is light warehouse operation, and heavy warehouse operation can be used under special circumstances. This requires traders to overcome the profiteering mentality and not think about "becoming famous in World War I". In the long run, success depends on time compounding and proper leverage.
9. Near-month operation and far-month operation
In futures contracts, it is often the case that the trend of near-month contracts and far-month contracts is different. In actual combat, which contract to place an order is often a concern of traders. In fact, this can be judged from the perspectives of technical strength characteristics, trading cycle and market hotspots. When choosing a contract, priority should be given to the contract that leads the decline or the rise. The popular contracts in the market are mainly those affected by periodic changes or events in fundamentals. Remember that you can't simply run through the phenomenon of price difference increase and discount.
10. Patience VS Decisive Attack
Patience and self-discipline are the basic qualities of professional traders. There is no conflict between the two, because you need to wait patiently before the trading opportunity comes, and when the trading opportunity appears, you need to make a decisive attack. If you are hesitant when trading, it shows that traders are not confident in their own strategic methods and are worried that misjudgment will lead to trading failure or missed opportunities. It is actually a false proposition to miss the opportunity, because only when the market is finished can we know whether it is an opportunity or a trap. In actual combat, when you are hesitant, you would rather miss it than operate at will. You should have confidence in the transaction, but don't be conceited and be brave. Winners learn probability, not luck, or believe in certainty, not expect miracles.