Because the stock index futures trading adopts margin trading, which has amplification effect, some investors mistakenly think that Man Cang operation can make a lot of money. As we all know, if investors open positions in the market as much as possible, leaving no room, then when the market changes in the opposite direction, resulting in negative available funds, the margin leverage effect also amplifies the losses.
Man Cang's operation not only has its shortcomings, but also has its advantages. Courage is the secret for traders to defeat the enemy in futures trading, and it is also the most difficult advantage to cultivate. Man Cang's operation can effectively cultivate the courage of traders. Man Cang is brave only when he is rational. In other cases, he is not only brave, but also stupid.
Extended data:
In general, "Man Cang operation" refers to long-term investment, that is, buying stocks and holding them. However, due to the characteristics of the A-share market, it is often ineffective to simply use this method for "Man Cang operation".
Because the Man Cang operation is very risky for money, the editor suggested not to take risks at inaccurate moments. Conditions for trying "Man Cang Operation":
1, with its own capital investment, no time limit and no use pressure;
2. When the market and individual stocks have fallen sharply in a row, the valuation center of gravity obviously deviates from the normal range after most varieties are seriously oversold, and the operation opportunity of Man Cang is rare;
3. After years of market tempering, investors have skilled operation technology, good investment mentality and strong risk control ability.
4. The expected profit of "Man Cang Operation" depends on the variety selection of "Man Cang Operation". If the variety selection is correct, even if the market falls after Man Cang, there will often be good returns; If the variety is not properly selected, it is likely to significantly underperform the index, and even in the case of continuous market strength, it will fall into an embarrassing situation of not rising but falling and losing money against the market.
5. Flexible control of "bring in and bring out" From the operational practice, the accuracy of rhythm control will directly affect the final result of "bring in and bring out" and even "Man Cang operation". In general, "Man Cang operation" refers to long-term investment, that is, buying stocks and holding them. However, due to the characteristics of the A-share market, it is often ineffective to simply use this method for "Man Cang operation". If short-term trading can be properly interspersed with "Man Cang Operation", the yield of "Man Cang Operation" can be improved, but the key is rhythm control.
The end of Man Cang.
If you want to gain extra income through band entry and exit at the same time of "Man Cang operation", the key is to correctly grasp and control the rhythm of band entry and exit: First, when the market is running in the downward channel, the bottom has not been fixed, or the upward trend is unknown, you can use stock funds to buy more and more until Man Cang, but it is not appropriate to add positions, that is, "only Man Cang, no capital increase"; The second is to carry out more high-throwing and low-sucking, and less stock exchange operations.