When the market blindly faces a certain trend and reaches its peak, it can be said that the market is making mistakes. Speculators profit from other people's mistakes and lose money because of their own mistakes.
Different types of speculators use different forecasting methods. The hat snatcher is interested in the next price jump and whether the next order is to buy or sell. Unlike a trend trader, he cares about the long-term trend of 1 month or 3 months. Each forecasting method needs different transaction forms and different fund management methods. Every speculator should know his own forecasting skills and their limits, and don't go beyond them.
All price forecasts are uncertain, but the degree of certainty is different to some extent. The level of certainty must be assessed and linked to the allocation of funds in the transaction. This interaction between forecasting and fund management requires every speculator's extremely patient attention. Just like a machine, all systems are fine until the start switch is pressed; Once the start switch is pressed, the hand is in danger of failure. However, what makes speculators feel gratified is that there are many opportunities for speculation. If a speculator trades at only 20% of the price fluctuation of related commodities, he can earn most of the profits in the game. The problem is not to find something to do, but to avoid making mistakes. Futures trading is a high-risk investment behavior and a commercial war without smoke. Not fighting an unprepared war is what every investor must follow. An appropriate trading plan mainly includes: its own financial anti-risk ability, the selected trading goods, the profit target and loss limit of the transaction, the market analysis of the goods, the opportunity to enter the market, etc.
Someone's financial situation
Investors' own financial situation determines the maximum risk they can bear. Generally speaking, the investment in futures trading should not exceed 50% of its current assets. Therefore, traders should make careful decisions according to their own financial situation.
Selected trade commodities
The risks of different commodity futures contracts are also different. Generally speaking, investors should choose futures contracts with large trading volume and relatively moderate price fluctuation at the beginning of entering the market, and then they should be familiar with a futures variety and have a very thorough understanding of it. Because it is difficult for people to grasp the situation of various futures varieties and all the intellectual challenges in the market.
Set profit targets and loss limits
Before futures trading, we must carefully analyze and study, and make clear judgments and estimates on expected profits and potential risks. Generally speaking, the profit-risk ratio should be determined for each planned transaction, that is, the ratio of expected profit to potential loss. The general standard is 3: 1. In other words, the possibility of profit should be three times that of potential loss. In the specific operation, unless there is a pre-judgment error, we should generally pay attention to the implementation as planned to avoid hastily changing the original plan due to short-term market changes or rumors. At the same time, we should also limit the losses within the plan, especially be good at stopping losses to prevent the losses from expanding. In addition, in specific operations, we should also avoid blindly chasing up and down.
Trading strategy is an art, and traders should use various strategies flexibly to fully increase profits and reduce losses.
market analysis
When analyzing the trend of commodity prices, traders should always pay attention to the basic trend of the market, which is the key to market analysis. Many investors are prone to make the mistake of guessing the market according to their own subjective wishes. When the market rose, they guessed that the market should peak and forced short selling. When the market drops obviously, I think the price will rebound and buy it rashly, and the result will fall deeper and deeper.
Access to the market
After predicting the trend of commodity prices, we should carefully choose the timing of entering the market. Sometimes, although the direction of the market has been correctly judged, it will also suffer losses if the timing of entering the market is wrong. In the process of choosing the opportunity to enter the site, special attention should be paid to the application of technical analysis methods Under normal circumstances, investors should follow the trading direction of the medium-term trend and buy when they fall in the upward trend; In the downward trend, sell every rise. If the market reverses after entering the market, different methods can be adopted to minimize the loss. There are many ways to screw things up, but for a novice speculator, most of them are quickly caught, which needs to be overcome. These failed methods include: 1, insufficient trading funds, which leads to the failure of correct prediction; 2. Trading at a slight price change, and the account is eaten up by the handling fee; 3. Trading beyond the ability of speculators, or trading varieties that they don't understand; 4. eager to make a profit, put off the stop loss until it hurts badly.
Behind these behaviors, there are four weaknesses: lack of strong character to challenge the market; Admit your mistakes and leave the market with great cowardice; Lack of hard-working spirit and greed.
Futures speculation is not a smooth road to get rich quickly, it is a difficult and rugged road full of thorns. It is a way to combine money, work and skills to get more returns than general interests, which is the foundation of investment. In short, futures trading is a game that requires wisdom, diligence and self-discipline. Investors must cultivate mature trading psychology in order to be invincible in futures trading.