What aspects does a complete futures trading system cover?
The trading system includes four elements: direction prediction, timing decision-making, fund management and mentality control. Direction prediction Direction prediction answers questions about the direction of buying and selling. Relatively speaking, this step is the easiest, because the price change is basically up and down. If one direction is wrong, the opposite direction is right. Some people think it's three directions, except for ups and downs. But sideways is only relative and temporary. Only ups and downs are absolutely eternal. The problems caused by sideways can be solved by timing and fund management. Timing is inseparable from fund management. Understanding timing means understanding that the futures market is essentially an opportunity market. The success of speculation depends largely on your ability to judge opportunities. The stronger this ability is, the lower the frequency of trading. Many investors tend to "rush all the way" and bump around like headless flies, going in and out several times a day. A master will never make a move easily before the opportunity comes, but once he finds the opportunity, he will incur the enemy. Opportunities in futures trading only appear at the moment when the long-short balance is broken, which is the "critical point" in the chart. Good timing can be achieved: first, the entry and exit points are very clear, the stop loss point is not only easy to find, but also the stop loss range is very small, and the order eaten at this price is very easy to handle. Second, if this transaction fails, the next step should be clear, that is, what to do after the stop loss comes out, and it should be easy to choose. Good timing is an opportunity to attack and defend. Fund management Fund management is to answer the question of how much to do. In the actual transaction, the single quantity control is to achieve two effects: making a big profit when doing the right thing in the transaction and making a small loss when doing the wrong thing. To do this, we need a good opportunity to strictly set the stop-loss position and the take-profit position. At the same time, we need to pay attention to two aspects: first, we should adhere to pyramid-type overweight in trading; The second is to properly handle the choice of whether to enlarge or reduce the single quantity after continuous profit and loss. A master can always make the profit of a correct transaction make up for the loss of many mistakes; Ordinary people often eat a lot of profits from correct transactions with one mistake. It is very important to control one's mental control ability. In fact, the quality of mentality is related to personality and experience. With the rich experience, the ability of psychological control will be gradually strengthened, but once it comes to personality, it is not something that experience can solve. Many times, futures trading needs courage. For example, after a long period of consolidation, when the market is facing a breakthrough, it is best to continuously increase the single quantity in the case of continuous errors. However, in the case of continuous mistakes in actual transactions, few people have the courage to increase the quantity, because it requires strong psychological endurance. Most traders will unconsciously reduce their orders when they make mistakes.