See the direction clearly. Like other futures, it is best to follow the trend when the market trend goes up and short when the market trend goes down. However, the main trend of the futures market can generally last for a long time, ranging from 2-3 years to 10-20 years. If we can follow the market direction, we can greatly increase the profit opportunities. When investing in the gold market, we must pay close attention to the international market. The dollar exchange rate is the primary factor affecting the price of gold. In the next few years, it is inevitable that the dollar will fall and the price of gold will rise. For investors, it is very important to gain the initiative in the gold market and recognize this trend.
Use probability to stop loss in time. In a risky market, it is impossible to make every investment right. No matter how high the level of investors is, mistakes will inevitably occur. At this time, the most important thing is to stop loss in time to avoid greater losses. The basis here is that according to probability theory, as long as you win more and lose less, there is still hope to win the general ledger.
For example, after buying a bullish futures contract, the bulls hope that the price of gold will rise, but at the same time they assume that the price of gold is contrary to the original expectation, so they will stop. The specific method is to close all long positions when the price of gold falls beyond a certain range to avoid further losses in the price of gold. The key point is to resolutely implement it once it reaches the stop loss position, even if it is later found to be wrong, don't regret it. Because if you don't stop loss, you may suffer more losses, and it will be too late to regret it.
Allocate funds correctly. In venture capital, it is very important to allocate funds correctly. First of all, when investing, don't invest all the money at once, but invest in stages. For example, divide all the funds into three parts, and then invest the second part after the first part is invested and profitable. If you make a mistake, stop the loss in time to avoid excessive losses. Futures trading should also leave enough margin. Because if the direction is reversed, the amount of extra margin generated by the loss will be too large. It is likely to lead to forced liquidation, which is the most dangerous. Especially in the futures market, big money owners tend to pull up in one direction, forcing their opponents to close their positions and crowd out their opponents. To avoid this situation, one is not to Man Cang, and the other is to stop the loss in time.