First, treating futures trading like a commercial company requires traditional business principles, analysis and judgment, and fund management. Futures trading is neither a game nor a gamble, and investors must never rely on luck and probability to fight. The futures market conforms to the basic principles of economics.
Second, act according to the pre-established plan, that is, have a set of effective principles and established indicators. If your trading skills are based on technical analysis of the market, determine your principles and strictly abide by them. If your trading skills are based on the fundamentals of the market, study the factors that affect supply and demand and move from time to time.
Third, only use venture capital. If there is risk, it will not fundamentally change your living condition.
However, although the above items are very important, in the futures market, the fourth item is the key to determine the success or failure of profit and loss, which is related to the psychological quality of individuals. Your personality characteristics, such as reaction under psychological pressure, quick decision-making ability, logical thinking, strong will, emotional components in your personality and attitude towards money, will all determine your success or failure probability in trading. The demand of futures market for a person's psychological quality is much higher than that of any other industry.
After opening a position, will your judgment be affected by emotions? In the process of analyzing market information and price trends, can we maintain an objective and fair position? In the decision-making process, can you get rid of emotions and think rationally? Will it be blindly influenced by other investors? Or go to the other extreme, are you stubborn and unwilling to listen to other people's opinions? If you find yourself wrong, can you face up to failure and admit your mistake? Remember, in the end, you must face the facts openly, because you can never hide it from brokers, and your family and friends will eventually know that floor brokers generally know the ins and outs of other investors.
When you suffer losses, you are convinced of your own analysis. Do you have a strong will to continue to defend your position? On the contrary, when you know that you have made a mistake, do you have enough courage to close your position immediately and reduce losses? The old saying "get out of the way and fight again" is more appropriate for the futures market. Do your transactions follow true statistical analysis, intuition and experience, not ego, fear or stubbornness? Or are you slow-witted, afraid, and even hoping for a market reversal?
When you are right, can you allow the profits to develop step by step, regardless of the considerable profits in front of you? On the contrary, can you know when to make a decisive profit and close your position, even if waiting can bring more profits? Do you know when to do this and that? Are you willing to learn from experience, or are you still repeating the same mistakes? Can you accept mistakes when you are wrong, but your mood is still clear? Do you have enough confidence to learn from different markets and be able to respond flexibly in complex and changeable market situations? After a huge loss, can you put yesterday behind you the next day and be as high-spirited as ever? Still worried about the last transaction and the next one?
These questions involve personality characteristics, and the answers naturally reveal the difference between successful futures traders and losers. Not surprisingly, in most other challenging industries, isn't personal psychological quality equally important? But there are still differences compared with futures investment. Unlike other areas of life, in the futures market, the ego is completely helpless. In addition, in the process of trading, emotions swell, because you are facing money-your own money! Here, your character, mood and personality have been tested as never before.
There used to be a quiet harbor hidden consciously or unconsciously in other fields, but it no longer exists in the futures market. You can't adjourn and reconsider; Can't change the subject for the time being; Do not consult experts or friends before making a decision; You can't stop to have a rest. Whether you do it right or wrong, the market is always changing. Opportunity knocks only once. When you need to make a decisive decision, your emotions and mentality must not interfere with your decisive decision.
I think of the Chicago Mercantile Exchange advertising media describing investors like this, "Is Toulouse-Lautrec engaged in commodity futures trading too short?" No, it's too emotional. Lautreck is an indecisive person, with fluctuating emotions and erratic opinions. Such a character is not suitable for futures trading. " That's right.
If you want to be a successful futures investor, you need to have many qualities: follow the necessary principles, learn from experience and lessons, be eager to learn, master the fundamental situation and data, skillfully use technical analysis methods, cultivate your inner trading feeling, win without arrogance, lose with grace, and so on. But more importantly, investors should cultivate rich personality and psychology, maintain emotional stability, and constantly improve their innate qualities such as courage and patience.