Of course, we should be familiar with technical analysis and fundamentals. On this basis, the quality of fund management directly determines the interests of investors! The risks in the futures market are unpredictable, and careful fund management is more important.
If you want to be a qualified and successful futures investor, at the initial stage of investment, you should first protect your own funds, and making money is later!
In order to survive in the futures market, we must have a set of perfect fund management methods. Even for beginners, they may be lucky at first, but they will still miss in the end. If he mismanages the funds of loss-making positions, he will not only pour out the profits he earned, but also put his capital in!
On the contrary, if a newcomer can be cautious in fund management and stop loss in time, he can leave some room for future transactions. Preserving strength is the key to the survival of the futures market and the key to the ultimate victory.
The important role of fund management in the success of futures trading needs to be explained: successful investors can strictly set the stop loss position in the transaction and cut off the loss part in time; Instead, it expanded its profit position as much as possible. In this way, the profits of several large orders in the income statement can offset several small losses in a year, and the result still reaches a good profit level. The reason lies in the proper management of funds.
The advantages and disadvantages of fund management are only relative. A management method suitable for one trader may not be suitable for another trader. In other words, don't be greedy for futures investment. There is an old saying in the market: being a cow and a bear has a chance to win, and being a pig will suffer sooner or later! In other words, small retail investors must strictly control their own funds.
There are so many books about futures and stocks on the market. Most books have at least one chapter devoted to the methods of fund management.
Compared with retail investors, the management mode of the fund shall not exceed one third of the total funds at a time. For CUHK investors, the amount of a single order shall not exceed 10% of the total funds. What needs to be clear is that the larger the amount of funds, the smaller the transaction funds as far as possible.
All transactions must be strictly stop-loss. Stop loss in time and enlarge the profit as much as possible. Don't set a dead code for every transaction. Compared with the novice futures trader, it is very important to maintain one's own strength in futures trading.