How to choose futures investment varieties When choosing futures varieties, futures investors generally include the following criteria:

1. Investment products familiar to investors;

2. Good liquidity and large turnover;

3. The fluctuation is large and the trend is good.

Why choose familiar varieties?

If you choose to invest in any variety, you must have a basic understanding of this variety. Of course, familiarity has different meanings for traders who use fundamental analysis and technical analysis. From the fundamental analysis, it means being familiar with the upstream and downstream industries of this variety and knowing where the key factors restricting the price trend are; Technical analysis starts from the disk, and we should understand some basic laws of price changes, such as its resistance line, support line and so on.

Investors are most afraid to participate in the transaction without knowing anything about the variety, which will lead to two consequences: first, there is no clear judgment standard for price changes, and there is no bottom in mind; Second, the lack of price judgment is easy to disturb the investment mentality, thus making the next investment direction more chaotic. Even if you make a profit for a while, you may make a wrong decision in future investment, leading to greater losses.

Why choose a variety with good liquidity and large turnover?

In order to facilitate trading, we usually choose varieties with large turnover when choosing varieties, which makes it easier to get in and out. Imagine if we buy a variety with only a few positions, then there is probably only one counterparty. If you want to close your position, you must get the consent of the other party. In this case, it is difficult for us to take the initiative in the transaction. Similar trading varieties are obviously not good varieties for investment, so they must be excluded when choosing.

In addition, in theory, the bid-ask spread of varieties with poor liquidity is usually relatively large. This can be seen from the inactive contracts of various varieties. For example, the Shanghai aluminum contract after 10: Suppose the buying price 17500 yuan/ton and the selling price 18000 yuan/ton. So if you buy aluminum at this time, the price is 18000 yuan/ton, but if you want to close your position, you can only accept the price of 17500 yuan/ton. It may be a long and difficult process until the purchase price rises to 18000 yuan/ton or even higher. So as far as speculative trading is concerned, no matter which one you choose, you usually choose the main contract, that is, the contract with the largest position and the largest transaction volume. The main contract corresponding to each variety has different rules. Investors can find the corresponding main contract as long as they pay attention to the two standards of position and volume.

Why choose futures investment products with big fluctuations and good trends?

The so-called big fluctuation refers to the big fluctuation of the day. For example, the fluctuation range of a day is usually greater than 1%, and the fluctuation is even greater when there is a market occasionally. This is especially important for investors who do day trading. If you buy this variety, the price will remain unchanged for a long time. Don't be wronged to death. The other means that the price fluctuates greatly the next day. If a variety is in a narrow oscillation range of one month, two months or even longer, the daily fluctuation does not exceed 1%, and the fluctuation range does not exceed 3% within one month or several months, such a variety is not very happy for investors. Or you can only watch others make money, but your own funds are always as calm as water. Of course, small fluctuation actually means that the risk faced by investment is also small, which means that if you go in the wrong direction, the risk of loss you face will be smaller than other varieties with large fluctuations. There is a certain positive correlation between risk and return, which is the most basic law of investment.

A good trend means that the price change direction of a variety has certain stability. The ups and downs like riding a roller coaster are also uncomfortable. Of course, this requirement is a bit too ideal. If the trend is really so easy to grasp, wouldn't futures investment become a business that most people can make money?

Choosing a good futures investment variety is a very critical beginning for the big project of futures trading. In an absolute sense, there is no absolutely good variety and no absolutely bad futures investment variety. Investors should adjust their own standards according to different investment styles.