First of all, stop loss setting should become a habit. In the process of crude oil market changes, investors can set a smaller stop loss in advance and strictly enforce it to protect the account funds from large losses. At the same time, when formulating the crude oil operation strategy, the overall risk can be evaluated, and the available margin in the account can be controlled as small as possible, generally within 5%.
After doing a good job in risk assessment and control, what we need to think about is how to give full play to the function of this 5% account fund, and then get the maximum benefit. Generally speaking, as long as you strictly implement your own stop loss, you have already invested in crude oil successfully, and the other half is the increase of static profit. On the other hand, if there is an operational error, don't blindly add a position to get lucky. It is the wisest thing to close the position in time.
Experienced investors usually use leverage ratio to control the "profit-loss ratio" of transactions. When our judgment on the market trend is not accurate enough, a reasonable profit-loss ratio can ensure that our losses are small, thus ensuring that the longer we stay in the market, the more opportunities we have to recover our losses; When we judge whether the market is right or wrong, a good profit-loss ratio will ensure that the loss of our transaction is less than the profit, and we can still maintain profitability in the long run. When investors have a high success rate in judging the market, then a reasonable profit-loss ratio can ensure us to achieve the goal of stable profit.
The ultimate goal of crude oil speculative leverage trading is to achieve high return on investment through capital leverage. In practice, many investors' practice of "closing their positions at small profits" not only violates the principle of "small but wide" in leveraged trading, but also does not reduce the trading risk, and may even increase the cost of holding positions because of increasing their holdings. This practice is abandoned by rational and experienced investors, and it is also a sign of immature trading psychology. Therefore, the key to the profit that leveraged trading can bring us is not the number of transactions, but the efforts to expand each profit and control the loss to the minimum, so as to maximize the small and wide role.