What are the futures investment strategies?
1, adopting trend tracking strategy, that is, making decisions according to the change of market price trend. According to the historical price trend, investors find the price development trend through technical analysis and formulate corresponding trading strategies. For example, when the market price breaks through the important resistance level, the trend tracking strategy will think that this is an upward trend and seize the opportunity to buy and open positions. The advantages of trend tracking strategy are easy to understand, but its risk is that it may not be able to accurately predict market trends, and misjudgment may bring greater losses.
2. Adopt arbitrage trading strategy, based on the price difference between different futures varieties, different contracts or different markets in the market. For example, when there is a price difference between the spot price of gold and the futures price of gold, investors can arbitrage through the price difference between the two markets. The advantage of arbitrage strategy is that it can reduce risks, but it requires investors to have rich investment experience and keen market sense.
How to control risks?
1, strict stop loss: stop loss refers to the automatic selling or buying operation when the market price reaches a preset level to reduce losses. In futures investment, it is very important to set a strict stop-loss point, which can effectively reduce the risk.
2. Diversified investment: Diversified investment is one of the effective ways to reduce risks. Investors can choose to invest in different kinds of futures contracts with different maturities to spread the risk of futures price fluctuations. Diversification can help investors reduce risks when the market fluctuates greatly.
3. Rational use of leverage: Futures is margin trading, which can not only increase investment returns, but also amplify investment risks. Therefore, investors need to control the leverage ratio reasonably, and do not overuse leverage to avoid short positions.