Timing of futures entering the market
As we all know, investing in futures can make use of price fluctuation to gain income, and can also be used to transfer the risk of price fluctuation to lock in profits or lock in costs. So, how do we operate? Accurately speaking, how to choose this opportunity to enter the market? Is there any way? The method of choosing the opportunity to enter the market: 1 The fundamental analysis method is used to judge whether the price of a futures contract will rise or fall, and then the technical analysis method is used to analyze the extent and duration of the rise or fall. 2 Weighing risks and profit prospects When speculators decide to enter the market, they should fully consider their ability to take risks. Only when the probability of profit is high can they enter the market. 3 determine the specific entry time. Futures prices change rapidly, and the determination of entry time is the most important. Technical analysis is helpful to the choice of the opportunity to enter the market. Futures speculators can think that in the long run, futures prices will rise (fall) in the future. If the contract price continues to fall (rise) at this time, it may be that speculators deviate from their own analysis and overestimate some supply and demand factors, or it may be that some short-term factors have a decisive impact on the market, thus making the price change deviate from the long-term situation. Therefore, the timing of entry should be determined by combining fundamental analysis and technical analysis, as well as the speculators' own needs. Finally, pay attention! Only when it is clear that the market trend is upward is it suitable to buy the corresponding futures contract; When it is clear that the market trend is downward, it is suitable to sell futures contracts; When the market development trend cannot be judged or the trend is unknown, it is recommended to take a wait-and-see attitude.