Let’s talk about varieties first: There are more and more types of contracts in the futures market. Which varieties should be traded? At present, there are 69 varieties of main futures contracts, which can be selected according to one's own personal conditions.
1. Look at risk tolerance
If the risk tolerance is low, it is recommended to only trade soybeans, soybean meal, corn, ale, and indica;
If the risk tolerance is medium, it is recommended to add sugar, plastic, PTA, soybean oil, palm oil, rapeseed oil, and rebar on the basis of the above;
If the risk tolerance is high, then including copper, zinc, rubber, cotton and other large varieties, can be traded.
Second, look at the amount of funds
Less than 20,000, trading varieties: rebar, soybeans, soybean meal, corn, strong wheat, indica rice;
Less than 50,000, trading varieties: sugar, plastic, PTA, soybean oil, palm oil, rapeseed oil, rebar, soybean, soybean meal, corn, strong wheat, indica rice;
50,000—100,000, trading varieties: zinc, white sugar, plastic, PTA, soybean oil, palm oil, rapeseed oil, rebar, soybean, soybean meal, corn, strong wheat, indica rice;
More than 100,000, trading varieties: copper, rubber, cotton, zinc, sugar, plastics, PTA, soybean oil, palm oil, rapeseed oil, rebar, beans, soybean meal, corn, ale, indica rice.
3. Selection of volatility range of futures varieties
People who like to play big fluctuations, trading varieties: copper, rubber, cotton, zinc, sugar, PTA;
Those who like small fluctuations and control risks, trading varieties: rebar, soybeans, soybean meal, corn, strong wheat, indica rice.
4. Selection of futures varieties related to external market
Highly correlated with the London Metal Market LME: Copper, Zinc;
Highly related to CBOT in the Chicago market in the United States: soybeans, soybean meal, soybean oil;
Highly independent varieties: sugar, thread, corn, ale, indica. (Since the white sugar bull market, the correlation between white sugar and American sugar has become stronger.)
Second, which futures company is better?
When choosing a futures company, the main considerations are:
1. Choose a regular futures company. Many counterfeit goods companies on the market are all fake orders. If you deposit money, you will not be able to withdraw money. Everyone must be careful. The best way to check whether it is a regular futures company is to check the list of futures companies on the official website of the China Securities Regulatory Commission or China Futures Association. There are currently 149 regular futures companies. As long as they are on the list of 149 companies, they are all formal and legal platforms.
2. The handling fee and deposit should be low. In order to make money, futures companies basically default to 2-4 times the handling fee, specifically to trick novices. In addition, they are afraid that customers will blow up their positions and they will post money. For their own safety, the margin for customers is also very high, generally between 1.5 times and 2 times. The handling fee and margin can be negotiated with the business personnel of the futures company (I don’t know if it can be negotiated in foreign exchange). The lowest is the standard handling fee and margin of the exchange. You can refer to the above picture. If it is higher than the picture, you can ask to lower it. If they're not willing to tune down, consider another company. There are many futures companies, which are found to have high commissions and are unwilling to lower them for customers. This is too much, and there is really no need to continue to use them, and contribute to them in vain.
Attach a picture of the margin and handling fee of futures varieties. The handling fee and margin in this picture are the minimum standards of the exchange
In the era of global economic growth, there are many kinds of investment products. Whether you choose the foreign exchange market or the futures market, the purpose is the same, for wealth growth. But there is a 28-20 rule in this market, 20% of the money is made, and 80% is a mixed bag. Therefore, in order to become the second of the 28th rule in the investment market, investors must have their own investment plan, trading philosophy, and strict execution, and maintain an independent idea. In addition, investment is risky, so you should choose a risk level that matches your own. I wish everyone can achieve financial freedom as soon as possible, whether in the foreign exchange market or the futures market (including me, haha)
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