Not only futures trading, but actually every kind of investment should be controlled well. Because capital leverage can amplify risks and benefits at the same time, capital management is particularly important in operation, as important as judging trends. Many times, our judgment on the market trend of the market outlook is correct and the result is a loss. This is the problem of fund management.
The so-called fund management is to strictly control positions. If the position is not strictly controlled, once the position is too heavy after opening or Man Cang operation, the futures price will fluctuate randomly, which may lead to insufficient margin, unexpected stop loss or short position, which will have a very bad influence on the trading mentality in the future. Therefore, strictly controlling positions is the most important part of trader's fund management, and it is also a discipline that must be strictly observed.
In addition, the correct and effective control of positions is conducive to adjusting the trader's trading mentality and position mentality, and can effectively avoid the excessive psychological burden caused by the violent fluctuation of account margin.