There are currently two trading modes in the domestic popular system; one is traditional technical analysis, such as using indicators such as moving averages, Bollinger Bands, macd, etc. to assist traders in trading, but it is often affected by personal emotions. The other is the relatively intelligent quantitative program trading system that institutions have begun to adopt in recent years, which completely eliminates personal emotions, but lacks flexibility and is especially passive when encountering major geopolitical changes.

There are many kinds of trading systems on the market. Regarding where to enter and exit the market, look at the K-line, the moving average, or the macd. Each system is different, each trader is different, and the position management is also different. no the same. You can refer to other articles for analysis. Here I will talk about system construction from the side to help retail investors improve the system.

No matter what kind of system is established, several key issues must be solved, otherwise it will become a mystery to the system and be misunderstood by the system.

1. How to deal with errors in judgment

No system can be 100% accurate. Beginners are often superstitious about the system. Once the system gives an error signal, one will doubt the system. The second is to doubt life. In fact, it is completely unnecessary. If you make a mistake in judgment, you must stop the loss or clear the position immediately. Because according to human nature, traders will make the second mistake under the influence of the first mistake.

2. How to set stop loss

Beginners are often very excited about seizing opportunities. They only look at the profit potential, but ignore risk control. They often regret after losses. Therefore, before each transaction, you should set a stop loss level based on your own capital amount and psychological endurance. Risk control comes first, profit comes second.

3. How to add positions

Many initial traders have been waiting since opening a position, not knowing when to take profits, or not knowing whether to continue holding at a critical node. To properly increase or decrease positions, you must consider basic skills. Traders should handle it flexibly based on their own analysis system and long-term experience and lessons learned. To put it bluntly, every trader's position of adding or reducing a position is different.

4. How to deal with risk events

When entering the futures market, you will encounter various uncertain factors. Many people are not used to it, but this is also the most interesting factor in the futures market. Charming place. How to deal with it? There is no trick, only strict stop loss. This is the disadvantage of all retail investors, even some large institutions. For example, in recent years, Soros's Quantum Fund encountered a huge retracement due to an unconventional speech by the Chairman of the Federal Reserve!

5. How to adjust trading strategies

Things are always developing. Many traders tend to rely on the trading system and are unaware that the market trend has quietly changed. If they do not adjust in time, profits will often turn into losses. Therefore, after the price changes, you should re-study the trading varieties and then formulate a new trading plan.