It has two main points: first, price forecasting, which solves the problem of whether and when to buy or sell a specific contract; The second is risk control, which answers the questions of how much trading capital is invested and when to stop loss.

In the whole implementation process, the trading plan should be continuously developed and improved according to the needs. Strict compliance with the trading plan is a common feature of successful futures traders. Novices should consider testing their trading plans by simulating trading before actual combat.

Price forecast. The profit of futures trading comes from buying low and selling high. It seems simple, but traders need to judge the price trend in the next few weeks or months. In other words, a price forecasting method is needed. Most traders predict prices based on fundamental changes or technical analysis. Others spend a lot of time and energy trying to find new methods and indicators to judge key prices. There are many people who claim to have discovered the "truth" of the predicted price and then sold you information. Don't believe these sweet words.

General traders tend to use price forecasting techniques and models that they think are good at first. The success or failure in actual combat can test the effectiveness of this method and contribute to its development and perfection. It is very important to check the effect of the adjustment after each adjustment of the forecasting method. In the end, only the adjustments that have been proved to improve the prediction effect will be retained. After such a process, you will eventually develop a trading model that can give good trading signals. Of course, it is also possible that you are not satisfied with this model and study another one instead. Finally, it should be pointed out that the model that worked in the past may no longer be effective in the future.

Risk control. Risk control is to establish stop loss and profit targets for each futures trading position. In the profit-loss relationship, first of all, the profit target is greater than the possible loss (stop loss), and only such a transaction is profitable. Secondly, the amount of gains and losses is also very important. For example, when a trader uses a trading model, the number of errors and correctness is half. However, he limited the loss caused by each mistake to 500 dollars, and the profit brought to him by each mistake reached 1000 dollars. In the long run, this kind of transaction is bound to be profitable.