Why do some people say that speculation in futures is bound to lose money because it is risky, easy to make money and easy to lose money? Traders can actively reduce risks through technical analysis, experience and grasp of trends, but it is impossible to completely avoid risks. Trading is anti-human, and in a market with its own leverage, the weakness of human nature will be magnified. As long as there is a big operational error or market mutation in futures trading, it is enough to make unlucky investors be swept out of the house overnight. But the existence of the market itself is reasonable, and there is no denying that some people who have been doing futures for a long time are profitable.
Many friends want to ask, how do these people who make money operate? Let's take a look at where those who speculate on futures losses are losing money. In fact, they lost on both points:
1. No stop loss. Because of the instability of the futures market, traders can lose all their money if they make one loss out of ten. Therefore, speculation in futures must learn to stop loss, so as to survive in the futures market for a long time.
2. Gambling is too big, operating against the market. The market is unpredictable! It is not advisable to be blind and arrogant. Never operate against the market trend. Traders can follow market trends through technical analysis, but the top and bottom of the market can never be predicted. Don't put all your eggs in one basket at this time.
For friends who have experienced the ups and downs of the futures market and are ready to enter the futures circle, Xi Cai Jun's suggestion is to study the laws of the market, don't be led by greed in human nature, and always remember to stop loss and take profit. The setbacks on the investment road will eventually make us grow up, learn to reflect while learning, and constantly adjust and improve our investment plan by using accumulated experience.