There are various trading systems in the market, such as where to enter and exit, K line, moving average or macd. Each system is different, each trader is different, and position management is also different. You can refer to other articles for analysis. Here I will talk about the system construction from the side to help retail friends improve the system.
No matter what kind of system is established, several key problems must be solved, otherwise it will become a mystery to the system and will be mistaken by the system.
1. How to deal with misjudgment
No system is 100% accurate. Novices are often superstitious about systems. Once the system gives the wrong signal, one doubts the system and the other doubts life. Actually, it's totally unnecessary. If you make a mistake, you must stop the loss or clear the position immediately. Because according to human nature, traders will make a second mistake under the influence of the first mistake.
2. How to set a stop loss
Novices are often very excited because they seize the opportunity, only look at the profit space, but ignore the risk control, and often regret it after losing money. Therefore, before each transaction, first of all, according to their own amount of funds and psychological endurance, set a good stop loss. Risk control first, profit second.
3. How to add positions
Many initial traders have been waiting after opening positions, not knowing when to take profits, or not knowing whether to continue holding at key nodes. In order to appropriately increase or decrease positions, we should attach great importance to basic skills. Traders should master it flexibly according to their own analysis system and long-term experience and lessons. To put it bluntly, every trader's position is different.
4. How to deal with risk events
Entering the futures market, there will be a lot of uncertainties, and many people are not used to it at first, but this is also the most attractive place in the futures market. How to deal with it? Do not move, only strictly stop loss. This is the disadvantage of all retail investors, even some large institutions are no exception. For example, in recent years, Soros's quantum fund suffered a huge retreat because of an unconventional speech by the chairman of the Federal Reserve!
5. How to adjust the trading strategy
Things are always developing. Many traders often rely on the trading system and know that the market trend has quietly changed. If not adjusted in time, profits will often turn into losses. Therefore, after the price changes, it is necessary to re-study the trading varieties and make new trading plans.