Futures prices break through the upward trend line, the market reverses, and investors' mentality will change. At this time, the correct trading mentality should be to take the initiative to close the position, and then consider whether to open the position. There are also some investors who hold positions at this time and want to wait until the price rises before closing their positions. As a result, the market has been falling all the way, and the mentality of investors has become more and more unstable with the changes in the market, and the best opportunity to close the position has been missed. The most undesirable thing is that some investors make subjective assumptions or fantasies, and also add positions on dips, hoping to make a big profit after the rise. Therefore, they had to liquidate their positions by force.
The prerequisite for investors to maintain a good attitude is to respect the market trend and not to operate according to their own temperament.
We should admit our mistakes to the market, adjust our incorrect trading mentality in time, and not indulge our incorrect trading mentality step by step. In futures trading, price risk is amplified by margin leverage effect. But there are many ways to prevent risks, but investors do use these counterparties too little, especially some investors who have just transferred from stocks. Although I know technology, I also ignore risk control and fund management, especially stop loss in trading.
(1) The technical stop-loss method combines stop-loss setting with technology, and sets stop-loss orders at key technical positions after eliminating random fluctuations in the field to avoid further expansion of losses. Technical stop loss methods mainly include:
1. The trend tangent stop loss method includes that the futures price effectively falls below the tangent of the trend line, the futures price effectively breaks through the Gann angle line 1× 1 or 2 × 1, and the futures price effectively falls below the rising channel.
2. Morphological stop loss method, including futures prices breaking through the neckline of head shapes such as head and shoulder top, M head and arc top, and futures prices jumping downward to break through the gap.
3.k-line stop-loss method, including a short gun with two yin and one yang, or a broken hay cutter with one yin and three lines, and typical K-line combinations such as evening star, head piercing, meteor, double flying crow and three crows.
4. Chip stop loss method, where chip trading is intensive, will directly support and resist the futures price. After the solid bottom is punctured, it will often change from the original support area to the resistance area, and the stop loss position will be set according to the chip trading intensive area. Once it is broken, it will stop immediately.
(2) Time stop loss is a stop loss technology designed according to the trading cycle. For example, if the trading cycle of a contract is expected to be five days, and the price hovers above the price line for more than five days after entering, then you should resolutely leave the market the next day. The main advantage of this method is to improve the efficiency of capital utilization.
About stop loss, there are percentage stop loss method, mentality stop loss method and so on. Stop loss technology is an important means for investors to guard against market risks in stock index futures trading, and it is also a way for investors to preserve their strength and improve the efficiency of capital utilization. Investors need to choose their own stop loss method according to their actual situation.
In order to develop a good trading mentality, investors should control some wrong thinking in actual operation and overcome various bad trading habits, especially the concept of no stop loss. Don't be emotional, but stick to a correct and effective trading plan for a long time.