For any investor engaged in high-risk transactions such as futures, the first thing to pay attention to is how to control risks. Summarize my trading experience in the past year and give two suggestions to new investors. The first suggestion: learn to control losses. Our risk tolerance depends on the income beyond investment. If an investor can earn 5,000 yuan a month in addition to investing, then a loss of 2,000 yuan a month will not bother him. However, if he loses 50 thousand yuan a month, he will become irrational because of fear or urgent need to turn over a new leaf. Therefore, investors should limit their monthly losses according to their own income. There is a joke about this truth: a doctor found his patient and said to him, "I have bad news and worse news for you." The patient said, "What's the bad news?" The doctor said, "Your laboratory report has come out, and you still have 24 hours to live." The patient was surprised: "Is there any worse news than this?" The doctor said, "I have been looking for you since yesterday!" " "For investors, the bad news is: One day, I suddenly found something wrong with my transaction; The worse news is that by this time, he has lost all his money. Therefore, from the perspective of investment, it is necessary to prevent risks in advance. The second suggestion: make a plan before trading. Ordinary people are new to investment, so it is easy to trade with feelings and run around with news. Hong Kong people call such investors "blind people chasing the wind sword". It can't be said that such an operation will definitely lose money, but the probability of making money is really not high. So, what is a plan? Is to find out the buying and selling points before trading. The buying and selling point is the basis of all investment ideas. If investment is regarded as a building, the trading point is the foundation, and all kinds of skills, psychology and ideas about investment are based on the trading point. There are many ways to find a trading point. Investors should refer to relevant technical analysis books. Controlling the risk in advance and knowing how to find the trading point is the beginning, and then we will talk about trading. Anyone engaged in any business will face a lot of confusion, but there is only one confusion in investing-why not make money? Some people answered "because they didn't follow the main force", some said "because there was no reliable news" and some said "because they didn't find the secret of prediction". But these are all wrong. The real answer is: because I don't know how to invest. There is a quiz to test your understanding of investment: a stock critic often recommends stocks on TV. After a period of observation, you find that 67 of the 10 stocks he recommended can only go up. Now you want to ask him to help you manage your money. How much are you going to give him for the operation? There are four options for the answer: a. All funds; B. 50% of the funds; C. 20% of the funds; D. don't give a penny. Many people will think that investment is to find a rising variety to buy and wait. On the surface, it is correct, but in fact, investment is a series of events, which can be basically divided into three parts: first, choosing a variety that can rise is called forecasting; Second, at what price and when; Third, what should I do if I fall after buying? What if you make money and don't sell it? What if you don't sell it and fall back? If you sell it and it keeps going up, do you still want to chase it? In this process, the importance of forecasting accounts for 20%, buying accounts for 30%, and selling accounts for 50%. Therefore, the correct answer of the above test is C. Investors who overestimate the importance of forecasting often simply understand the cause of losses as forecasting errors, so they often blame analysts for not looking in the right direction. Once, a customer asked me, "didn't you say this variety was going up?" "Now it has fallen! What are you going to say? I replied, "I can only say congratulations, because you can buy it at a lower price." "This is the key. Falling down will do no harm to everyone. If you are short, it is good for you. So the problem is not the ups and downs, but the timing of short positions and positions. If we are short most of the time when the forecast is wrong, then we will have enough positions when the forecast is successful. Then the course of the transaction will be beneficial to us. This is the next trick-how to sell. In investment, buying is only a small step. After buying, the question that investors have to face immediately is "sell or not sell?" "This is the hardest part. Such a decision is easy to make in the session, but it is often regretted afterwards. Therefore, we should consider the selling point before investing. Let's talk about stop loss and take profit first. After buying, set a specific stop-loss price. The purpose of this is to terminate the loss position in time and avoid the infinite expansion of losses. Stop loss is an old trick, which the average investor will fully understand within one week of contacting futures, but once it is actually applied, the problem arises: when the market makes mistakes, it will stop loss frequently, while profitable positions will often be stopped. To a large extent, this is because there is no active profit taking. If the price rises, the selling point becomes take profit, because the selling point is the pressure level, and there is a selling signal here, which means that the price may reverse, so we must lock in the profit first. Stop loss and take profit are the two legs of trading. If it is only a stop loss, the normal adjustment of the market will also cause frequent stop losses. If you just take profits, once you make a mistake, you will lose a lot. Stop loss is to ensure the safety of trading, but stop loss itself is a loss, which should be made up by profit, while take profit is to lock in profit to make up for the loss. This complicated relationship can be illustrated by a simple metaphor: two brothers go to the underworld, and the elder brother is responsible for eating and fighting, but after each meal, the younger brother needs to pay the bill. The younger brother doesn't help the older brother pay the bill, and the older brother can't help the younger brother fight. If the elder brother doesn't help the younger brother, no one will help him pay the bill. This brother is called stop loss and the younger brother is called take profit. Ideally, the stop loss will be compensated by the profit of take profit, which has two advantages: 1. Trading is sustainable, and you can play this game for a long time; Once the market is misjudged, it will have little influence on you. It's not over here, just stop loss and take profit, and investment has become manual labor. If you want to make a lot of money, what you need is a position-a position that can make money. This requires adding the concept of target bit. Need a target position before buying, and hold it when there is no take profit signal; Buy again, there is still no take profit signal, continue to hold; Buy again until the price reaches the target position, and gradually clear the position and leave. This is a complete transaction process. There are two purposes for setting the target location: 1. Stop loss and take profit is to make short-term advantages, and the target position can maintain short-term advantages all the way to long-term; 2. Turn the forecast into the basis of operation and provide a clear direction for the transaction. If there is no target position, forecasting and trading are completely irrelevant. This is what I call a trick. To sum up, there is only one sentence: one center and two basic points. Take the target position as the center and stop loss and profit as two basic points. This is the trick. Many people think that investment should keep up with the main force, have inside information and be hard to prevent. I think these are uncontrollable factors and all belong to luck. In fact, the most taboo of investment is to pay attention to those uncertain things. We just need to pay attention to the certain things-target determination, loss determination and profit determination. What we need to learn is how to manage them. Zeng Guofan said: "A gentleman does his best, regardless of destiny, because destiny lies in personnel. "