After years of Wall Street experience and millions of dollars in tuition, I want to tell you that the secret of making a lot of money is not what I think, but that I can sit still.
After years of Wall Street experience and millions of dollars in tuition, I want to tell you that the secret of making a lot of money is not what I think, but that I can sit still.
And ask a question:
How to deal with floating profit taking in futures trading?
How to deal with floating profit taking in futures trading?
Undoubtedly, whether it is futures or stocks, trading must cut off losses and let profits run. The way to make profits run is to give back profits. Therefore, a futures stock trader must understand that floating profit-taking is necessary and a prerequisite for making profits, because only when you take floating profit-taking can you have a chance to get a big trend.
For example:
This is the coke market, which has been rising very steadily, but there will still be a decline in the process. A futures trader will only have a chance to hold such a market if he allows himself to bear part of the retracement.
If you don't take back, the profits will run away. In the initial stage of this market, you have taken the initiative to take profit and leave. The following quotation has nothing to do with you, and you can't hold it back like Livermore said.
He can hold it because he can bear reasonable floating profit taking. Because the range of retreat is under control, only after his rules of play can he really sit still.
For example, the coke above, I give it a 20-day moving average as the basis for playing:
Can't this deal succeed? Although the profit finally dropped a lot, the overall profit still got a big wave. A small retreat in the process is just the price you have to pay to keep the trend.
So, how to treat floating profit-taking in futures?
This is all the price that must be paid for the success of the transaction, that's all.
This is all the price that must be paid for the success of the transaction, that's all.
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