In the fierce competition, following these guidelines can avoid becoming? Lamb on the altar? . The reason why some amateur traders will never become professional traders is that they don't follow these trading rules. They can't succeed and always fail. As long as one or more of these trading rules are violated, it will be difficult for these novices to survive under the cruel test of the market. Here are the ten basic rules of futures trading that I brought to you. Welcome to reading.
First, study first, then act.
The common mistake made by some novices is that they don't know what to do when they enter the market. They don't know much about the market. They never take the time to observe how the market changes, and then take risks with their own money. Usually, when people do something, they always observe first and then act. If you want to learn to dance, you must first see how others dance, and then try it yourself. But 80% people who enter the market will stop trading after 12 months. The root cause is that they didn't start from the first step. Traders should carefully check every detail of their trading system to understand the possible mistakes or various ways to succeed in this system.
The process of this education should include: determined trading motivation, strategy, how to execute trading, trading frequency and trading cost. Because you have to pay commission, the higher the transaction frequency, the faster your profit will be consumed. In the content and method of trading, we should also consider our own personality characteristics. Motivation is very important. Some successful traders can persist in the futures industry for a long time because they like trading. They won't let the desire to make big money interfere with their trading decisions. Some successful futures traders believe that making big money is not a good motivation.
If the trading system is used for trading, it is necessary to repeatedly test and determine the probability of loss. They must know their advantages in methodology, work habits and specialization. If they don't know these advantages, they will take great risks.
Second, we should reduce losses in time.
When you lose money, you should make decisive decisions, stop trading and reduce losses; When your trading position is profitable, let it grow further, which is an old creed. Many traders repeat this creed. The common mistake of many novices is to hold on to losing positions, thinking that the market will reverse. When their positions were profitable, they withdrew from the market prematurely. They were too eager to get the initial profit and lost the opportunity to further increase the profit. They are worried that their profits will be lost.
Successful traders always make up for some small losses with a small amount of profitable transactions. The usual psychological trend of novices is to get out of the game as soon as there is a profit, and put it away as soon as possible, instead of letting the profit continue to grow. The latter is difficult to do. Novices in the futures industry should learn to restrain their desire to be satisfied with small profits in order to expand profits.
Third, it is essential to abide by rules and discipline.
Some well-trained traders can always make money by using the tried and tested trading system. Those who lack the code of conduct often fail to adhere to consistent trading behavior. In the process of trading, half-hearted, capricious and inconsistent will ruin all profit opportunities. The advantages of some good trading systems require perseverance. If you change or abandon a trading system or trading plan at will, then you have no trading system or trading plan at all. Some experienced traders believe that when you just lose money, replace or give up a trading system, it may be the turning point for this trading system to make money. Therefore, it is very important to maintain consistent trading behavior.
Fourth, focus on the trading process.
Experienced traders all emphasize the need to pay attention to the whole process of trading, rather than whether to make money, which sounds a bit contradictory. Some famous traders believe that losses are inevitable in futures trading, and losses are an inevitable part of the trading process. Traders who focus on making money are likely to lose money. They can't cope with the inevitable decline in investment. When they make money, they are in high spirits, and when they lose money, they are depressed and even panic.
Emotional fluctuation during trading is not a good phenomenon. We must pay attention to the whole process of the transaction calmly. Futures traders can't predict the market trend and what will happen in the market, but they can control the trading process. In fact, what they can control is the trading process. The biggest problem for novices in the futures market is to pay attention to making money and losing money, not the trading process. An old trader said, if you are afraid of losing money, what else are you trading? You do 10 times, 15 times or 20 times, and one of them must be a loss-making transaction.
5. Know when to go out.
Traders should know when to quit the market. No matter what system they use, they know when they have to go out. This will help traders get rid of the half-hearted approach, adhere to a certain system, and also reduce losses. Stop loss orders can be set to reduce losses. The market may not agree with the timing of your entry into the market, and the market is not interested in when you leave. The market always operates according to its own laws. You must set a stop-loss order according to the movement law of the market.
Considering that sometimes when your trading position loses money, it is a turning point, so you can't set the stop loss order too dead. When he wants to place a stop loss order, he should take into account the volatility of the market. Instructions should be based on market indicators. For example, an average market price is usually the lowest price at a certain stage, and some traders set stop-loss orders at will, regardless of the market operation mode. They are likely to lose money in this way. If the market order is specified on the basis of a certain amount, it will often reduce the amount of losses, but it will increase the number of transactions with losses. If the stop loss order is set too dead, a series of loss-making transactions may occur. There is a basis for when to withdraw from trading and suspend trading positions. Hopes of avoiding trading? . Hoping to trade is hoping that the market will reverse when there is a loss.
6. Manage your money well.
Senior traders suggest setting a certain proportion of funds to take risks. The percentage of risk-bearing funds can be 20% or 30%, and this percentage should never change. It is very important to maintain the risk percentage of a continuous portfolio. Some novices think that one or two transactions can make a lot of money, which is a big difference between professional traders and amateur traders. This is the management of losses. Setting a risk-taking percentage for your own funds can reduce the transaction scale, maintain capital and limit the degree of loss in the case of continuous losses. With the reduction of the number of trading contracts, the return of funds will also be restricted. In this way, the transaction scale can be consistent with the capital scale.
VII. Interacting with Trends
? Trend is your friend? This is a sentence repeated by some old futures traders. This is the only way for futures trading. Successful traders believe that it is not important to predict the trend and ups and downs of the market, but it is important to follow the trend. Many traders suggest following the trend of market development, in other words, following the trend of the market, following the trend until the end.
The advice of some experienced futures traders is: never make irresponsible remarks about the market and express some opinions. The general trend of market development is your friend. You just trade with the trend. Let the market tell you which direction to go. A famous futures trader once said that when the market develops into a big trend, it means making money, and when the market turns to a fork, you can't make big money.
Eight, don't be emotional in the transaction.
Experienced traders warned against trading by feeling. It's important to keep a steady mind. This is especially important when doing a variety of futures trading. Professional traders emphasize: remember that the market is not an individual's behavior. They believe that losing money transactions are often caused by emotions. Some novices often forget everything, and trading by feeling is bound to be repeated and inconsistent. And I can't think clearly. It is important to develop a trading method and stick to it. If the method is effective, discipline and patience are the key to making money. Novices tend to get emotional, but good traders don't. Don't insist that a position is correct and the market is wrong. The market is always right. The market has nothing to do with your opinions and positions.
Think about who is losing money.
An interesting way for some well-known traders to arrange trades is to think about who you want to make money from. Everyone who enters the market obviously makes money, but it is impossible for everyone to make money. Someone is always losing money. You make money, others lose money. If you earn, you lose, and if you lose, you earn. A senior futures trader thinks that you should know who you want to profit from. If you buy and think he is right, then the seller also thinks he is right. People want to make money from people who misjudge. Of course it is. Some trend traders, or trend traders, usually make money through hedging. Because hedgers usually sell when the market goes up and buy when the market goes down.
Ten, always remain humble.
Those who think they are smarter than everyone in the market think they will always be lucky. Their views won't last long. Be modest in front of the market. Otherwise, the market will let you know that this attitude will go wrong. The market will humble you. This is what a famous trader said. Some traditional views are usually wrong. When you think the information you have is great and valuable, maybe someone else already has it.
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