1. Make a trading plan. When investors are engaged in trading, they have great freedom of choice in profit and loss. It is precisely the right of free choice that brings a double-edged sword effect, which can facilitate investors to flexibly adjust their investment strategies; Poor utilization will increase the risk of fluctuation faced by investors' funds, and even the loss will exceed their expectations and affordability.
When investing in the HSI futures market, we must decide when to enter, when to wait and when to leave. We must determine the maximum loss in advance to avoid unexpected losses. In reality, many people can't control themselves, resulting in more and more losses. The reason is not how terrible the futures instruments are, but that there is no clear trading plan to control the degree of losses. Without a trading plan, there is no basis for making a decision, and it is impossible to make a decision in time when it is necessary, so it is impossible to survive in the futures market for a long time.
Second, fund management. Fund management may not be an important principle in the stock market, but it is the primary investment management principle in the futures market. Even the most successful trader cannot guarantee that every investment is successful. What the futures market needs is that the profit of profit trading is greater than the loss of loss trading in order to succeed, rather than relying on the success rate of 100%. Due to the characteristics of high leverage mechanism of futures, if only one investment is unsuccessful and there is no clear stop-loss trading plan, all funds may be lost. Therefore, fund management has become the primary operating principle of the HSI futures market.
Third, determine the stop loss position and take profit position. Due to the futures margin trading system, debt-free day settlement system and relatively short futures contract period, investors must always have enough funds to add margin when they lose money to ensure that the position margin exceeds the standards set by futures companies. When investors lose money, they can't wait for a solution like speculating in stocks, and investors can't keep their futures investment positions for a long time. Any forecast may be different from the real trend of the market. Therefore, investors should set a maximum loss limit for themselves in advance when deciding whether to buy or sell futures contracts.
The most important thing is that once the transaction loses money and the loss reaches a predetermined amount, it must be closed immediately and implemented without hesitation, regardless of whether the market direction continues to deteriorate or improve after implementation. Because you can never guarantee that the next step will be better.
Take profit and close the position in time. After opening positions, we should pay close attention to the changes in market conditions, pay attention to limiting losses at any time, and take profits in time. Unlike stop loss, when the market changes in your favor, you should not rush to close your position and make a profit. Instead, we should try our best to extend the profit space of favorable positions and fully obtain the profits generated by favorable market changes. Generally, you can choose to close your position after the market turns.
Fourth, choose the timing of entering and leaving the market reasonably. Investors have different strategies to choose the timing of entering the market, which is not uniform. If it is a mid-line investment position, it is more favorable to judge whether the market is a bull market or a bear market with basic analysis; If it is a short-term position investment, technical analysis is more suitable for grasping the opportunity to enter the market. Because HSI futures investment is mainly a capital game before maturity and delivery, technical analysis is particularly important on the premise that the fundamentals have not changed significantly. Whether it is a mid-line position or a short-term position, we need to refer to the results of technical analysis to grasp the market opportunities.