We should fully understand the market rules. The futures market is a margin system and a small and wide market. We should fully understand the risks and control them at all times.
The principle of making money in futures trading is four words: small losses and big profits. It looks simple, but few people do it when it is actually implemented. So now that we know, we must work hard in this direction. It doesn't matter what trading method or strategy you use. Your mind determines that no matter what you do, your goal is to make big profits with small losses. Only by doing this can you make money in the transaction. Some people can make a lot of money in a short time, even ten times, but when they lose money, it is even worse, and the result is still a loss.
If you lose 1 10,000 yuan to 1 10,000 yuan, you only need to lose 90%, while if you earn110,000 yuan, you need to earn ten times. Therefore, it is easier to lose money in this market than to make money. In addition, there is no advantage in making money by yourself. Especially after continuous losses, the principal is damaged, which has a great influence on the mentality. Even if you continue to make money, when the amount of funds is large, the proportion of losses will be enlarged, but the speed of losses will be faster. Therefore, if you want to make money, you must control the losses and try to make as few losses as possible.
In the actual transaction, you must not start to re-trade at the beginning and start to try the order lightly. If you make a mistake, you will lose some money. Only when you are right, have a certain profit, and the position direction is proved to be right, can you add positions, that is, you can only add positions in the right position, and you must never add positions at a loss. Lossy positions should be closed as soon as possible. Only by doing these two things can we lose less when we lose money and earn more when we make money. So doing the right thing or doing the wrong thing is not the root cause of the loss, but how to handle the right position and the wrong position is the root cause of the profit and loss.
Stop loss in time in the wrong position, make a small loss, overweight the correct position and enlarge the profit. Therefore, we don't pursue absolute accuracy and perfect entry point. We only consider whether the position after entering the market is proved wrong or correct by market trends. Then stop in the wrong position and add the correct position. And such behavior will lead to the result of losing small and earning big.
Now to sum up, the principle of making money in futures trading is: small losses and big profits. It is inevitable that there is right and wrong in the transaction, and the occurrence of mistakes is reasonable. We can't pursue absolute correctness. Only by properly handling the right and wrong positions can we lose less when we lose money and earn more when we make money.