In futures trading, if the speculative direction runs counter to the market trend, how can we turn losses into profits?
Hehe, this question is actually quite complicated. First of all, you should make sure that your conclusion about the market direction is correct. Well, there are too many things involved. We assume that your judgment on the current market direction is correct, but the direction of opening positions is the opposite. Generally speaking, there are two ways, 1, to cut the position and admit your mistake directly. Of course, many times you will find that you may have made a mistake, but if you cut it right, it will actually save you. But now that you have raised this question, it shows that you are impressed by cutting the wrong warehouse, and there is still a remedy in the case of doing the wrong direction, that is, the second method, locking the warehouse. That is, once you find that the trend may be opposite to your opening direction, you can immediately open a reverse position of the same variety and quantity, so that you can temporarily lock in the expansion of losses and then carefully observe the trend. If the trend shows signs of returning to the original direction, you can open the same number of positions in the original direction at the reversal. At this time, you can unlock some of the locked positions, or you can not unlock them. When the trend returns to the original opening price and all appear, you can recover the losses. But there is a premise that the larger direction in the original direction has not deteriorated. Remember, this is a remedy. If it is found that the trend has indeed reversed, this is the only way to ensure that the risk is under control. Some people will lock the position before selling the original position after discovering the trend reversal, but this method must be used with caution, and it is likely to fall into a deeper quagmire because of repeated reversal of positions.