Guide:
There are two main ways to make profits in trading: holding a small position to catch a large swing increase, or holding a large position to earn a small price difference.
But please always remember another more important principle: keep the most profitable positions and clear the most profitable ones
The strategy of closing profitable positions early and clinging to losing ones is a very expensive strategy that will eventually lead to its own defeat. This is also a typical practice of losing traders. On the contrary, one of the "positive marks" of successful traders is that they have the ability and willingness to strictly observe discipline to close out losing positions while holding on to profitable positions.
Moreover, although profit-taking can satisfy personal face more than admitting losses and killing out, we must know that we are not here for face in this market.
We are here to make big money at reasonable risk. According to this principle, what we should care about is the overall profit-making operation, instead of trying to prove that we are right and the market is wrong.
From this it can be extrapolated to a strategy that has been proven to work by professional traders. This strategy is: in any market, or in two related markets, what you should be long is the product with the strongest trend, and what you should be short is the product with the weakest trend.
Doing so insures your "bet" that if the market goes up, your long position will outperform your short position, and if the market goes down, your short position will outperform your long position. good performance. Another advantage is that the margin required for a position can often be reduced, or in other words, with the same margin, you can operate a larger position.
A truth that is universally applicable in the futures market is: except for some occasional and short-lived abnormal periods, the market and price trends themselves are not good or bad, right or wrong. There is good and bad, or to be clear, it is the trader himself who is right and wrong.
The vast majority of operators played the wrong side and blamed the loss on the "crazy and unreasonable market", but the winners (those who have always followed the trend with strict discipline and an objective attitude) firmly believed that this market is really good Extremely. In the same market, people who eat the same rice have completely different views on whether the market is good or bad.
In fact, discipline and objectivity are more important than ever in these markets, which seem to be bouncing up and down without purpose. We have all had the experience of being wiped out by the market and leaving the market with a loss, but you must not be angered by the market or lose your mind.
When it comes to controlling and suppressing losses, many experienced operators like to compare operating strategies to several aspects of chess strategy. For example, one must be willing to sacrifice certain pieces in order to gain some tactical advantage, or to preserve other more valuable pieces.
What does this metaphor have to do with futures operations?
If you have a homeopathic position, which is equivalent to attacking first when playing chess, you are in an advantage, and you should adopt an aggressive strategy to win big. In this case, you just hold on tight and follow the main trend, and you don't have to rush to take profits and make small profits. But if you hold a counter-trend position (equivalent to the side that plays later when playing chess), you are on the defensive. If you can retreat without any loss, it will be a blessing.
If you don't believe in evil and insist on waiting for the trend to reverse, which will benefit you and make you a lot of money, it would be wishful thinking and unreasonable. If you can break even and break even then pack it up
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