Generally speaking, avoiding futures risks can be carried out from four aspects: laying a good foundation, planning transactions, fund management and timely stop loss.
1. Lay a good foundation
Laying a good foundation is to master the relevant knowledge of futures trading. Before futures trading, you should have a detailed understanding of the basic knowledge and trading varieties of futures trading. Because futures trading involves many factors such as finance, macroeconomic policies, economic trends at home and abroad, and different listed varieties also have their own trend characteristics, especially agricultural futures are greatly affected by natural factors such as weather. Before participating in futures trading, we should have a comprehensive understanding of the above contents. Only by accurately understanding the above contents can we accurately grasp the market trend.
Planned transaction
Planned trading means that investors make a scientific trading plan before trading, and make corresponding plans and strategies for the process of opening positions, the proportion of opening positions and the possible loss range; When trading, strictly implement this plan and strictly abide by the trading discipline; After the transaction, summarize the reflection plan in time. However, in order to make most profits and reduce losses, it depends not only on whether investors strictly implement their trading plans, but also on the ability of fund management.
3. Fund management
Fund management is very important in futures trading. Man Cang operation should be avoided in futures trading, and the capital invested in trading should not exceed 50% of the margin, and the proportion of capital invested by mid-line investors should not exceed 30% of the margin. In practice, investors should also statistically analyze the maximum range of reverse fluctuations in the historical trend and the probability of various adjustment ranges according to their respective financial strength and risk preference, and set up more reasonable and effective positions.
4. Stop loss in time
Timely stop loss is often cultivated by small and medium investors, especially in the securities market? Die? A task that is difficult for a habitual investor to complete. Investors must be soberly aware of the risk amplification in the futures market. Die? The actual losses caused by futures are likely to exceed the invested funds, so it is very important to stop losses in time.
In short, as long as investors fully understand the risks in the futures market and properly manage the risks in futures trading, they can still effectively control the risks in futures trading and improve their profitability.