The ancients said: "Everything is established in advance, and it will be abolished if it is not planned." This sentence is expressed in modern language, which means that everything needs careful planning. Sun Tzu's art of war emphasizes the importance of battle plan, and even thinks that the quality of battle plan directly determines the outcome of the battle. This concept also has a strong guiding significance for futures trading. The first article of Sun Tzu's Art of War emphasized this point.
If the husband does not fight, the temple will win; If the temple didn't win before the war, it would be too few. Win more, win less, it is better to have nothing? From this perspective, we can see the results.
Because the firm operation of futures is very easy, you can buy or sell it by pressing a few keys on the computer, so for a considerable number of non-professional investors, the randomness of trading is particularly prominent. Many times, investors may just be impulsive, such as hearing some news, or seeing the price suddenly move in one direction, they can't help but enter the market to trade. However, when the price moves in a direction that is not conducive to your position, you will be depressed and at a loss. Even when the price continues to rise (fall) and is consistent with the direction of their positions, they will be flustered because they don't know whether to take profits in time or continue to hold them. In the whole transaction process, I have been in a state of confusion and confusion.
The temple calculation mentioned in Sun Tzu's Art of War can help investors solve this problem. The temple refers to the plan of the court or emperor for the operation of the war. Sun Tzu believes that the battle can be won or lost from the number calculated by the temple. In futures trading, temple refers to making a good trading plan (under what conditions), studying fundamentals (spot supply and demand and its influencing factors), making a good fund management plan (the proportion of funds invested in trading and the distribution ratio among different varieties) and a risk surprise plan (what measures to take when prices change in an unfavorable direction), and so on. Only by making assumptions and preparations for the expected profit target and possible risks before trading can we maximize profits and reduce losses.
In fact, "temple calculation" does not guarantee 100% success of the transaction, but at least it can reassure investors when the market is unfavorable, minimize the possibility of wrong decision-making and minimize losses.
Know yourself and know yourself, and you will be invincible; Know yourself and yourself, one wins and one loses; If you don't know who you are, you will lose every battle.
To make a good trading plan, traders must have a comprehensive and detailed understanding of the market, and at the same time know yourself and yourself, that is, collect information well. On this point, Sun Tzu gave an excellent answer in "Tactics and Raiders".
"Know yourself and know yourself, and fight every battle" has long been a household name in China. For futures trading, this sentence also has extraordinary significance.
The so-called knowing each other means that you must be very familiar with your trading partner. For example, if you are engaged in sugar trading, from a fundamental point of view, you must be familiar with the characteristics of sugar harvest season, the main planting areas of sugar cane, and what kind of climate influence sugar cane planting is vulnerable to. We must fully understand the industries where the downstream consumption of sugar is concentrated and the areas where the sugar delivery warehouses are distributed, and whether there are different degrees of discounts. Any omission may lead to the influence of price fluctuation, thus affecting the final transaction result.
Of course, confidant is also a very important factor. To make a deal, you must know yourself clearly: know your financial strength and how much risk you can bear; Fully understand your personality characteristics and how much money you can accept before you can withdraw. After all, trading is a process of controlling your mind. In the whole process of futures trading, the mentality of investors is very important and can not be ignored.
If you don't understand the various characteristics of trading varieties and how your mood fluctuation will affect your operation when the market changes dramatically, then such a transaction will definitely fail in the end. Even if you get lucky once or twice, as long as you are still trading in this market, you will lose sooner or later.
Making a good trading plan and improving the collection of information are the prerequisites for the success of futures trading. Only in this way can we ensure an orderly advance and retreat in the treacherous and changeable futures market.