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How to make profits in the futures market: ups and downs Author: Shen Liang Huang Xiaoming
Futures is a kitchen knife. It's up to you to use it as a kitchen tool or a murder weapon.
One day, I chatted with a friend who has worked in the futures industry for more than ten years, during which I discussed a viewpoint that "whether futures are a kitchen knife, whether it is used as a kitchen tool or a murder weapon depends entirely on the user". I think it's very lively and interesting.
Many people think that futures are risky because they only see the destructive side of futures and ignore its constructive side. But futures is like a kitchen knife, put in the kitchen, it is just a tool for cutting vegetables, harmless and useful, and can even help us make delicious food every day; And if you use it to chop people, it is a murder weapon, which is extremely lethal. If you don't get it, you will throw yourself into prison or even lose your life.
In fact, futures are just an investment tool. As a tool, it will have its due role. At the same time, its function is a variable, which can be large or small. The size of its function is accompanied by the size of potential risks. Investors can make adjustments according to their own needs when using its functions.
Whether futures are used as "kitchen utensils" or "murder weapons" depends entirely on investors themselves.
Futures is a car with a throttle and brakes.
Many people like futures because they have the leverage of amplifying funds 10 times, and many people are afraid of futures because of the leverage of futures (10% does not rise or fall, and the principal is completely lost).
We should treat the leverage of futures rationally and choose the leverage ratio according to our own trading level and risk tolerance. If the futures operation technology is mature and the risk tolerance is high, you can use leverage of 5 times, 8 times or even 10 times (Man Cang operation refers to 10 times); But if you are new to futures, you haven't got a deeper understanding. ...