What is the true meaning of futures trading? I think this is a question that every trader involved in futures needs to answer clearly. Personally, I think the essence of futures trading is: small and wide. What I'm talking about here is not what we usually call margin leverage, but the problem of "how to fight against larger profits with smaller losses" in futures trading. Small and wide is synonymous with speculation, which can be divided into broad sense and narrow sense. Speculation in a broad sense is going on in all aspects of our lives, not only in the futures market, but also in the spot market. Even the survival process of a life is a speculative process. Just from the perspective of money possession, speculation is defined as: seizing opportunities and investing in order to get several times the return of investment. The purpose of speculation is clear, that is, making money. If you want to return to your thoughts, your efforts will return to your efforts, but the fact is that some people make money and some people lose money. Careful analysis, in fact, the reason is very simple: most people who lose money have not learned to be small and broad. "Small" means "paying small", but even if it is "small", many people are still unwilling to pay, and they want to be broad without paying. The key to the success of a few people is to learn to be "small and broad", so in this sense, there are two kinds of people in life. One kind of person is called "the wisest man is foolish" type. This kind of person is suddenly generous and far-sighted, regardless of small profits. A kind of people, called "a fool is a wise man" type. Such people are narrow-minded, short-sighted and haggle over every ounce. The process of futures trading from small to large is itself a person's cultivation process. Therefore, humanity is the key to the success or failure of futures trading. No matter how high a trader is, it is impossible to predict the market 100% accurately. What should I do? Relying on principles to make up for the lack of technology, but the principles of a trader are completely formulated, and it is useless and meaningless if they are not strictly implemented in trading. Why are some principles not implemented? This is a question of human nature. People who have engaged in futures trading practice have the same experience, that is, "an armchair strategist" and "a real knife and a real gun" are two different things. When you don't trade, you often have higher accuracy, feel good about yourself and have a good attitude. Why? Because winning or losing has nothing to do with yourself. At the moment of real trading, the other side of human nature is exposed, that is, the idea of "wanting to win and being afraid of losing" is full of people's minds. Therefore, the plans and principles made in advance have long been forgotten, and the result is often small money and big money, which eventually leads to failure. It can be seen that human nature plays a key role in determining the success or failure of a transaction. If futures trading is regarded as a war, technology is tactics, principles are tactics, and human nature is responsible for integrating principles into tactics, thus winning the whole war. If technology is regarded as water, the principle is a container, and human nature is responsible for putting water in the container, so that it will not be submerged and invisible, but there are rules and regulations. If technology is regarded as a religious belief, principle is a ruthless law, and human nature is the executor of the law. When there is a crisis in religious belief, law is used to ruthlessly regulate human behavior. If technology is regarded as a sword, it should be a double-edged sword. If you use it well, you can kill the enemy. If you use it badly, you may hurt yourself. The principle is armor and protective clothing. Only by attacking on the basis of good defense can we be invincible and have no worries. Therefore, human nature is responsible for putting on armor before the treasure knife is drawn, and then going into battle. During the Three Kingdoms period, General Xu Jun, Cao Cao's aide, fought bloody battles and got an arrow, just as Mr. Lu Xun said, "It deserved it." It can be seen that the three necessary and sufficient conditions for a successful trader are the combination of technology, principle and humanity, which are indispensable and inseparable. The principle without technology is an empty principle, the technology without principle is blind technology, and the transaction with insufficient human nature cultivation will be a failed transaction. In the final analysis, the failure of trading is a problem of human nature. Therefore, the successful condensation of mature human nature, complete principles and rigorous technology can realize the true meaning of being small and broad!