In terms of probability, a single entry is not right or wrong, and the winning rate is at least 50%. Coupled with various technical indicators and fundamental analysis and judgment, theoretically, our winning rate should be slightly higher than 60%. However, with a theoretical winning rate of 60%, 95% of the people in the market are losing money, so how is this money compensated? Stop loss, lock the position, or add the position to death!
Strict stop loss is the most direct and effective way to control risks. Whether you are short-term, band, or even long-term, we have a maximum allowable loss. It is a well-known truth for investors to lose money to a certain extent. There are several common stop-loss methods, such as: fixed-point stop-loss, stop-loss according to support resistance, stop-loss according to the scope of capital withdrawal, etc. The most annoying thing about firm stop loss is that it often begins to reverse after the stop loss, and the stop loss is at the top or bottom. Since the argument of strict stop loss is set, don't dwell too much on the problem of sweeping loss, because the situation of sweeping loss has been considered before making a stop loss strategy, and countless people are still struggling with the problem of sweeping loss. There is no answer here. I just want to tell you that the stop loss strategy should be strictly implemented.
About locking the warehouse
As for locking positions, this kind of behavior is always confusing, but it is often used by many traders. Judging from the trading experience, I really can't find the benefits brought by locking the warehouse. In fact, the fundamental reason for locking positions is that investors are unwilling to dispose of the loss list. If it is the first time to lock the warehouse, the impact on the account will not be too great, and investors will not be wary, which is why so many people like to lock the warehouse.
However, opening a warehouse is easier than unlocking, because if you want to unlock it successfully, you must ensure that your next two operations must be 100% correct, otherwise your unlocking action will fail and the loss will exceed the original loss sheet, so there is a very strange problem here. Since the two actions must be correct when unlocking, why can't I find a better opportunity to ensure that the next two orders are correct after the stop loss, but think about the next two orders under unfavorable circumstances? If you have this ability, I believe your list will not go to the point where you need to lock the warehouse!
How to resist death?
Dead shoulder is a way of fund management. The reason why we attach importance to discussing the death penalty is because it is human nature and few people don't like it. It takes courage to face up to human nature and self, and it is important to find the crux of the problem. Many short positions are caused by dead shoulders, which can be solved by skilled traders, but thanks to their expertise in dead shoulders.
We say that hacking is a classic and common trading technique, which comes from the support of statistical data. The data shows that 75% of quilt covers will be automatically untied within one week. 40% quilt cover will be automatically untied within two days. If the stop loss is frequent and the position is incorrect, the continuous loss caused by the stop loss will also be a problem. Change your mind, fight it, and you will come back soon.
The most important thing is to manage the position. At this point, we want to emphasize to you. If you can't handle the position management well, don't die if the position is big. Remember! The basic principle of lifting the dead is to lift the dead in a light warehouse.
To sum up the above operations, the most reasonable and effective way is to strictly stop losses. Locking positions and dead bumps are all things that have to be done, especially when the position is too large and the market is not particularly clear. If investors can't get out or can't get out, there is nothing but locking positions and dying, so position management is also very important. Don't let your operation change from active to passive. When you can't actively operate the account, you are already in a passive situation, and you can only wait for the market to give you an opportunity, instead of letting us grasp the market. Learn to keep a card for yourself, don't blow it as soon as you come up. In the end, you will lose!
The above is about "what should I do if the direction of futures trading is reversed? Stop loss, lock position, or die? " I hope I can help you. Futures trading can make life rich and property shrink. Controlling risks and keeping the principal is the first important thing in trading. To do a good job in futures speculation, we must start with futures accounts. Futures account should choose reliable and cheap futures companies. Bian Xiao will explain in detail the collection of handling fees for futures accounts. Finally, remind everyone again that investment is risky and you need to be cautious when entering the market!