20 classic questions and answers from more than 30 years of futures trading career, worth collecting!

When I give lectures to new traders, I like to speak more based on my own experience. This way, you can always leave a deeper impression. I think a lot of books on futures theory have been published, but most of them lack vividness and intuition.

Based on my own practical experience, I would like to share my views on the following issues with you.

1. Why is it said that we must first learn to lose money in the futures market?

This sentence I often say is not a joke, although whenever I hear such words, there are always people who laugh like a joke thrown by a crosstalk actor.

Let me talk about the true meaning of this sentence from several aspects.

(1) The money must be lost clearly. Initially, many people who enter the market are ignorant and ill-prepared, and many people lose all their money in a confused way, even if they lose money unclearly.

I saw it with my own eyes during the coffee surge in the United States in 1994. A customer holding a full position and a short order was so anxious that he pointed his finger at the computer and yelled at the broker, "Stop it!" What to do? live? Soon, he was kicked out of the futures market within a few minutes.

Is this an unjust compensation? This customer does not know how to set a stop loss, nor does he know how to assess the situation and take the loss to exit the market. I don’t know how to control risks. Is it unclear how much money I will lose? This was also the first order this customer placed, and I never saw this customer again.

I think maybe he will never be interested in futures again! Because in the end he didn't understand how this could happen, and futures were just a memory of disaster and fear for him. How can we make compensation clear? It means being fully aware of the huge risks, and then losing money according to your own plan, your own ideas, and your own expectations.

These words may seem unpleasant and seem like a joke, but they are not. I'm not asking you to proactively look for ways to lose money, or for the purpose of losing money. The purpose is of course to make money. What I am saying is that we should have a specific plan every time: if the market goes against the market at which price we will exit the market, and how much we will lose when we leave the market.

Admit losing a battle very sensibly. But that doesn't mean we lost the entire war. Don't worry, opportunities will come one after another. As long as we still retain our strength, we will win at any time.

What I mean by clear compensation also includes: You should understand in advance what impact it will have on your overall operation after you lose this money, whether it will have a major impact, and what strategic and tactical needs will be Adjustment. Also includes the impact on mentality.

(2) Compensation should be reasonable. Not every money-losing order in the market is a bad order, and not every money-making order is a good order.

The key to a good trader is to make reasonable losses and make profits in a systematic way. What does it mean to make reasonable compensation? First of all, the profit-risk ratio must be reasonable - it is a matter of how much risk you take to get how much profit.

For example: If the market goes against you, be prepared to take a loss of 30,000 yuan and leave the market. If you go right, you can make 3,000 yuan before reaching the next resistance and support level. Is this a good reason to enter the market? If the market goes against you and you really lose money and leave the market, then I think your loss is unreasonable, because you took a risk that is ten times greater than the profit you sought, and it seems that you have completely forgotten the concept of using small to gain big.

You are "using big money to win small money". Even if you win nine times in a row, it is not enough to lose once. But how sure are you of making continuous profits? If you operate with this idea, you will know the outcome before entering the market.

If the profit-risk ratio between the two is reversed, don’t you think the loss would be more reasonable? Secondly, the price at which you take the loss and leave the market should be set behind an effective support and resistance level. In other words, you should identify a point at which you take the loss and exit the market, so that you have a reason to stick to the risk.

The pass is the price where long and short competition is fierce. Here we can verify the overall development trend at a very small cost. At these fiercely competitive junctures, the futures market often performs the classic drama of using small and large things.

Third, if it is a rapid upward trend or a violent downward trend, you have to follow the trend, and the above two conditions have no reference value. what to do? 1) Follow up with small orders and gradually add positions as the market continues to progress in the expected direction. The first thing to consider is to control risks.

2) If the momentum reverses or stagnates slightly, decisively leave the market immediately regardless of profit or loss.

Remember, we dare to do anything in any market because we can decisively control risks. (Some people say that you should be bold when placing orders, while others say that you should be cautious. In fact, they are both correct. It is the overall stability and the local boldness. The overall stability and the individual boldness. Both are indispensable).

2. Why is it said that unilateral action is irreversible?

In theory, unilateral market trends are a great opportunity to make money, but people are used to the ups and downs of the market, and now they are shocked by this seemingly irrational market trend. For example, as for the unilateral rising market, I think it has risen very high and will fall sooner or later, right?

Let’s go short at a relatively high price! Speaking from my experience, in a unilateral market, there are many people who are severely damaged by the market and even kicked out of the market because the market reverses and there is no stop loss. Furthermore, it is extremely difficult to persuade people to go long with the market in a unilateral trend. From then until now, I always emphasize not to do the opposite. Why?

First of all, we often talk about "taking orders with the trend and irreversing the market", but who really understands this sentence? What is momentum? What is the general trend? The unilateral market is the biggest trend! Can you still find a bigger trend? But you did the opposite. This is a more stupid thing than giving up the opportunity! ?

It was a good opportunity that turned into a disaster for you! It's really hard to find a vivid metaphor to describe this kind of stupidity in real life. If this is not called going against the market, what else can be called going against the market? !

Secondly, you may think that the rising or falling market has exhausted its strength, so you might as well make an order against the trend. That being said, it's theoretically true. But in actual operation, you use Lu Gu - a kind of tulle to block a strong bow and crossbow.

Nine times out of ten, he will still be shot. Because it is difficult to grasp where the end is and the exact point you should stand on. Of course, nothing is absolute. If you do see an extremely effective historical resistance level, it is not unreasonable to try shorting, but you should set a stop loss. In the futures market, only resolute stop loss and strict discipline are absolutely necessary...

3. How do you explain that you will never lose big money?

Using small to make big gains is the essence of futures. In principle, we always gain huge profits at a very small cost in the futures market.

(1) Each minimal cost should be predicted in advance and strictly implemented during the development of the market. The result of such strict enforcement of discipline is that you will never lose a lot of money. We can plan in advance and control the price we have to pay every time the market goes wrong.

If we do not take the initiative to plan beforehand and control during the event, then there is only one thing left and we have to passively accept it, and that is - "regret afterwards".

(2) Never losing big money is not only reflected in the resolute execution of each market trend, but also should be implemented in the overall thinking of the operation. For example, when formulating an overall profit plan, the overall risk taken should be a small portion of the total capital. I usually limit it to 20%.

Then consider how to make full use of these 20% consumable "ammunition" to win victory. If you resolutely implement the principle of not losing big money, you will achieve half of the goal of using a small amount to make a big difference, that is, "using a small amount to make a big difference". If you cannot do this, there is no way to talk about "using a small amount to make a big difference".

You can only "use the big to benefit the big" or even "use the big to benefit the small". Like war, you must first protect yourself to effectively destroy the enemy.

Protecting yourself does not mean not making sacrifices, but minimizing sacrifices, or maximizing the ratio of victory to cost. If you can really execute according to the pre-plan, you can control the losses to a minimum each time. Then you have a greater macro win rate.

Why do you say that?

(1) In the case of continuous errors in judgment, or when our judgment lacks accuracy, the smaller our losses after each failed order, the longer we will survive in the market. , the more opportunities we have to come back to life.

(2) In the case of mixed judgments, if the loss is less than the profit every time, then there must be a surplus on our books. We are on the winning side. And the smaller the average loss each time, the greater the profit.

The greater the ratio of average profit and loss each time, the more profit will be

(3) When the judgment is more right than wrong, if the loss every time is less than the profit, then we must have made a big gain. The victory bowl is full.

4. What proportion should the idle funds in the account usually account for, and what is its overall significance?

Under normal circumstances, the funds I use for each transaction must be less than one-third of the total funds. In other words, there are always available funds on the account accounting for more than two-thirds of the total funds. But I don't think these can be called idle funds, because they are equally important to my futures operations.

First, this part of the funds is also in my overall thinking. For example: in a wave of market conditions, if I buy a forward contract of 30,000 in an account with a total amount of 100,000, then generally, based on the same overall idea, I will buy in an account with a total of 200,000. Sixty thousand forward contract.

The remaining 70,000 and 140,000 funds in the two accounts respectively were also included in my overall thinking. They are also integral participants.

Second, they are still the main force in the battle and the large force is our strength reserve for patiently waiting for the decisive battle. A good general will never put the main army into an embarrassing situation where they are exhausted.

On the contrary, let them spend more time in a state of rest and preparation, waiting to play a decisive role in the decisive battle at any time. The larger the corps fighting, the more strategic the general is. The combat time of its army will not be more than the non-combat time. Instead of directly participating in the battle, it spends more time recharging its energy and strength, and spends more time in a state of planning, waiting, and making choices.

Third, I always use these funds in several key market situations to make the account close to full or even 100% full. Without the use of these funds, I would not have been able to achieve great results. My goal of doubling the total amount of funds not only includes them in the "total amount", but also requires their "help" in the key market decisive battle.

5. Why never make small money?

A friend once told me excitedly that he made nine consecutive orders and all made profits. I asked how much was the profit? He said it was closer to 10%.

I warned him: Your profit is 1% every time, but how much risk do you take? He was stunned by my question, and it was obvious that he had never considered this question.

Because I am a friend, I will continue to say: How many times you make profits in the futures market does not mean much, and making small amounts of money does not mean much. You must not take big risks to win small profits, and you must not One loss cannot make up for multiple profits.

On the contrary, you should take small risks to win big profits. Each profit should be enough to make up for multiple losses. You must see profits several times the risk each time before entering the market. Friends were unimpressed. A few days later, the market reversed, causing him to exit the position.

I wonder if he had some understanding when he left. There is another meaning that I did not say: His placing this order also shows that he does not have firm confidence in winning big profits in the general trend. Among the nine profits, there must be a lucky rebound against the market, and there must be a situation where the profit is not exhausted and the sesame is picked up but the watermelon is lost.

Doing this will naturally lead to a sneak attack concept, thus fundamentally giving up strategic macro-thinking and overall thinking. In fact, it is very easy for you to have more profit orders than loss orders in the market, because even orders that go against the general trend often have the opportunity to make a profit in the shock (if you have more profit orders than loss orders, you pursuit).

Even making profits several times in a row is not more difficult than playing the banker continuously in mahjong. But one thing we should not ignore is that the ratio of profit and loss in the mahjong game is roughly 1:1.

Therefore, the final profit and loss is closely related to the number of "Tie" cards you play. The number of "Tie" cards is the decisive factor in the final profit and loss and the amount of profit and loss. It turns out that the futures market provides us with a place with a greater winning rate than the mahjong table.

As long as we control the loss-loss ratio according to our own wishes, we can still make money when the number of wins is less than the number of losses. Unfortunately, many of us, like the protagonists in black humor novels, control this ratio inversely, causing us to lose all our money even though the number of profits is much greater than the number of losses.

In this case, if you finally leave all the orders for a farmer friend who knows nothing about futures to see, maybe he will say, "Why are you so stingy every time you make money and so stingy every time you lose money?" Generous! ”

Of course, I can often find orders that make a small amount of money, but this is by no means subjective and intentional, but due to changes in my understanding of the market or due to the general trend. Just leaving hastily.

In fact, each of us will make small money from time to time whether we are willing or not. What I mean by not making small money is that you should never run overall deployment and market operations with the purpose of making small money.

6. Why must profits be liberalized?

The ultimate goal of using a small and broad approach is to make big money in the market. "Running away when you see a profit" not only violates the principle of "being broad", but it also does not reduce the risks you take at all. Although for each time, the risk this time disappears with this settlement, you immediately get into another risk.

If the market goes reverse, can the profits from the last time be made up? Are you taking more risks? But you are taking risks just for small profits, and you are trying to catch sesame seeds from the tiger's mouth. You have the courage to enter the tiger's den, but you are just picking up small advantages every time. You are not a hero, just a fool.

If Yang Zirong risked his life and broke into a bandit's lair just to have a feast of a hundred chickens, would he still be an admirable hero? Only those who seize valuable treasures from the tiger's mouth according to a careful plan are wise and brave.

7. What profit target should be set?

From the overall perspective, I think the profit target should be set at 100% of the total margin - only when you can withdraw your principal will you be considered a winner. Then, we should treat every fight as a decisive battle or it may become a decisive battle at any time as the situation develops. The goal is to achieve overall victory or lay the foundation for overall victory.

Of course, it also includes minimizing losses in case of defeat so that it does not affect the overall situation, let alone annihilate the whole army at once. Of course, we cannot hold out hope and stubbornly wait for the market to develop toward our goal. However, when making profits, we should not always end it hastily, just like picking up a wallet for nothing and fearing that the owner will recover it.

Every profit we make is not a free one. We pay the price of risk and are willing to take the risk of being hurt by a tiger. With this understanding, we should use our patience and wisdom to win the maximum profit while ensuring safety (already having a certain surplus).

8. Why is it said that winning 100% is considered a win?

Of course, this is not absolute, this is just my more personal way of thinking. The first thing I saw was the ubiquitous risks in the futures market. In fact, even if you make a 200% profit without leaving the market, it will only be temporary. The reason why we say 100% is because:

(1) At this time, you can withdraw the principal and return to the original investment state. In this case, the principal There is no longer a risk in gold, only the profit part is fighting, which is already an amazing victory.

(2) I always set a goal in advance to make 100% profit for my clients and then call it a day. The risks in the futures market are unlimited. Your profits can only explain the present and today, but cannot explain the future and tomorrow, although you are constantly making profits and have excellent momentum.

So I always set a profit target in advance and use it to settle accounts with clients. There are two reasons here:

(1) I think setting a profit target is better than a time target as well.

(2) Not everyone can stay in good condition forever. At this point, futures are like sports competitions, which are industries that require full concentration. Your psychological and physiological conditions are not only cyclical but also fluctuate with your emotions.

In the case of huge profits, the mentality is easy to change, no one is immune, and the most important thing for traders is to have a calm and peaceful mentality. Therefore, it is extremely necessary to adjust the mentality after reaching a certain profit target. After settling the past, it will be a new beginning. We must start from scratch, forget the past, and meet new challenges.

9. Why should the profit target of each market wave be 80% of the current market?

I said "80% profit target for each market wave". Some people ask why it is not 100%? Of course, everyone wants to make things more perfect, buy at the lowest and sell at the highest.

But which points are the highest and the lowest?

We cannot know before the market is over. During the market development process, we can only estimate whether a certain point is the highest and the lowest. By chance, the estimate may be correct. This chance does not exceed a few percent. . If we take profits out of the market based on this possible contingency.

I don’t know how often I miss out on big market trends. If I calculate from the highest point during a big uptrend, the market will reverse 20% and then I will make a profit. It seems that the profit is 20% less in theory (just in theory), but how far will the market go in a strong period before there is a decent correction?

You often have the unrestrained mentality of "giving up" 20% of the profits at any time and win yourself a huge profit space. In the overall calculation, it is definitely "not worth the loss".

Looking back, how many traders who sold at the "high point" that just appeared at that time and missed the big market are now regretting it and beating their chests? Although new highs continue to appear in a round of rising prices, we cannot determine which is the highest point.

But during the pullback, we can count whether the last high point has been pulled back to 20%, and whether it is time for us to leave the market and ship. This is exactly what we can see and can operate. . So why choose 20% instead of 10% or 30%? This is not absolute, just a rule of thumb.

However, the following two points should be met when choosing the ratio:

(1) The market will always vibrate. Don’t be frightened by slight vibrations and jump out of the car to run away and miss out on making big money. Good opportunity. To do this, you must be mentally prepared to give up a few percentage points. This percentage obviously cannot be too small.

(2) Make sure that most of the profit is not lost in vain. To do this, the ratio obviously cannot be too large. Of course, you have to pay full attention, continue to increase the exit price during the callback as the high point increases, and pay close attention to the callback ratio and momentum during the callback, so that you can do better and more reasonably.

10. Why is it said that making money for three consecutive days in the futures market depends on luck and can everyone do it?

I mean, there's nothing mysterious about making money in the futures market. Because the market has only two directions, up or down, there is a 50% chance that an order will go in the right direction. If you make one order every day and make profits for three consecutive days, it is not too difficult. It’s not more difficult than playing mahjong and sitting in three villages in a row. It’s just that you can’t do this in every village, you have to be lucky.

11. Why is it said that making money in the futures market for three months depends on wisdom?

According to my experience, newcomers who have just entered the market always face more adaptation problems. It is very rare to be able to last for a month without breaking a muscle when entering the market in such a fierce battle. In the market, if you can still make profits for three consecutive months, it is already extraordinary.

I'm sure you must have something unique and unique. Maybe it’s a keen intuition and accurate judgment, maybe it’s a more reasonable allocation of funds. In short, you are not fighting the market in a daze or relying on instinct. You must have thought and used some rational wisdom.

12. Why is wisdom alone not enough?

Because of year-round hard work, we still need to rely on trading techniques. Trading techniques include: the law of increase and decrease in single volume as the market changes, and the regular and traceable profit and loss ratio set in advance for each wave of market conditions. According to a certain Fund allocation methods that follow certain rules in proportion, etc.

Because these are not only a test of our wisdom, but also a test of our firm confidence and strict discipline in strictly implementing the rational conclusions crystallized by these wisdoms. So I call it technique.

If you are still making profits for more than a year, then you must have good trading techniques - strict discipline, flexible and rational trading techniques to back you up consistently. Because the wisdom of each of us is limited, and there is no infinite wisdom.

Moreover, this limited wisdom is also affected by variables such as our physiological conditions, psychological conditions, and biological cycles. We cannot be like a machine or a market that always operates efficiently without exposing our weaknesses from beginning to end.

But we can use our rationality to formulate for ourselves effective techniques to be used in the market and rules that must be followed, so that we can make fewer mistakes and show more rationality in the market.

I cannot guarantee that your rationality will definitely allow you to make money, but if you have been fighting in the market for a year, you will still make a profit. Then I can guarantee that you already have certain reasonable operating techniques and relatively strict market discipline. Don't be proud, continue to improve, there is a lot to do.

13. Why do we say that there are many market trends that we cannot understand?

But that doesn’t mean we shouldn’t do it? Kant said that what we know is only the appearance of the world, only the phenomenal world. As the essence of things, that is, "things in themselves", we cannot recognize them. What interests me is that he very seriously and calmly makes us aware of the limitations of human understanding.

This kind of awareness is very accurate when applied to the futures market and helps us think. For example, do we really know whether the market will rise or fall every time? Do you really know what factors ultimately determine each rise and fall?

Is it market supply and demand or arbitrary speculation by big players? Market supply and demand are determined by several reasons? Is there another unknown factor? Which big companies are controlled by the combination of Zonglianheng and Zonglianheng? Is it because a group of funds on the opposite side defected at the last moment that one side won by chance?

Because the development trend of too many major events is determined by accidental small things, even if we have extraordinary logical thinking and rational thinking capabilities, even if we are as wise as Einstein, we will definitely be able to analyze and recognize these accidental events. And general trends determined by these contingencies? The answer is obviously no.

Based on this understanding, we should not be like Zhuge Liang in the drama who always 100% trusts his own judgment (it’s just that the real Zhuge Liang in the drama is much mediocre) and stubbornly refuses to do anything Second hand preparation. It must be made clear that we actually cannot understand many market conditions.

But why can we do most of the market trends? First, we can consider doing it if we are 70% sure. Because we can win seven out of ten times by doing this, and we win based on probability. Second, it can also be done if the ratio of profit and loss is above 3:1.

Because you won’t lose money three times to one time. Of course, it would be more ideal to have both. We should also try our best to find such opportunities to improve our winning rate. Third, you can follow the general trend. If it goes against the trend, you can immediately get out and wait and see. This is also in line with the principle of reasonable arrangement of risk-profit ratio.

14. Why is it said that market analysis and judging whether the rise or fall is right or wrong may not ultimately determine the outcome?

More people are constantly asking me how I view the current market trend, but few people ask me about my preparations for this wave of market conditions and what my two lines of thought are. "A simple judgment of right or wrong may not ultimately determine the outcome." This is what I said in response to the above situation.

First of all, if the outcome is determined solely by the judgment of the rise or fall, then the outcome of our random orders by tossing a coin is already around 50%. There are obviously other factors that influence winning or losing in the futures market. For example, what are the handling methods after you decide whether you are right or wrong? What is the increase or decrease in the order volume each time you enter the market?

15. Why can’t you place short orders near the daily limit and long orders near the lower limit?

If the price of the day is close to the daily limit, it means that the rise of the day is strong. Wouldn’t counter-selling a short order be against the market trend? Even if the general trend is bearish in the long run, it is not advisable to go against the short-term trend. If the general trend is also bearish, then you are doubly operating against the market.

Going against the trend is tantamount to committing suicide? The most important thing is that there is a danger of being caught off guard at any time near the daily limit and being buckled into the limit! On the contrary, the same is true near the lower limit.

Even if you have good reason to be bearish, you should place a short order at a price far away from the daily limit or do it the next day, otherwise you are risking being pushed back to the limit without warning? Then, your stop-loss strategy and your small-to-big-big idea will instantly become a laughing stock on paper! It is easy to understand that it is not short at the upper limit and long at the lower limit, using a vivid metaphor, because it is simply hitting the muzzle of the gun.

So, what about going short "near" the daily limit and long "near" the lower limit? That is teasing the enemy within the effective range of the enemy's gun! It's a walk in a jungle covered with nets!

16. What do you think about going short on the upper limit and long on the lower limit?

As for some people going short on the daily limit and long on the lower limit, that is the most stupid thing in the futures market! What does daily limit mean? To use the analogy of spot goods, all the goods on sale that day were sold out, and there was an endless shopping queue behind them.

They have to wait until tomorrow to try it at a higher price. And at this time, you took out the only inventory at home and sold it at a price that no one was willing to sell on that day. I really don’t know whether you were out of kind-hearted charity or because your brain was flooded.

The lower limit means that no one is willing to buy at the lowest price allowed for trading in the market that day, and the crowds of sellers who want to sell at a lower price can only wait until tomorrow according to regulations.

At this price, people think about things like garbage but can no longer throw them away, but you just entered the market and bought them at a price that no one was willing to pay. Do you have the unique insight to see that treasures can be extracted from garbage?

Even so, you can definitely buy it at a lower price the next day! Do you know that you are lucky that the person who threw the garbage to you is also laughing behind your back that you are a fool? Of course, there are cases where you accidentally buy at the lower limit, and then the market reverses the next day and you make money.

But what percentage can this account for? Is it worth emulating? A small gain can make a big difference in probability! We should use high probability to win small probability. Just imagine if we hold a sell order ten times every time on the daily limit board, how many times will we make a profit? How many times will it take 100 times without losing money?

17. If someone made a profit by shorting at the daily limit, what would you think of him?

The profitable orders I mentioned earlier are not necessarily good orders. Is this the best negative teaching material? This is the most stinky profit order in the market, with huge dangers lurking behind it. If you are a customer and you are lucky, this is the first order your broker makes for you (the second order may cause you to be kicked out of the market) ) Then I advise you: replace him immediately and get rid of him. Because he is the one who goes to the market to make money in vain!

18. Have you ever said that you can make money by doing long or short positions according to the heads and tails of a coin toss?

I have said it before, but don’t take it as a frivolous statement. Let me start from the beginning: I first came into contact with futures in 1993.

The earliest set of books I bought was a five-volume set. My earliest futures knowledge came from this set of books. This is a very common set of books that introduces the basic knowledge of futures. There is a story in it that left a very deep impression on me.

Suppose an American makes long and short orders in the futures market every day according to the heads and tails of the coin tossed. After a year, not only does he not lose money, but he also makes a profit. People call him Mr. Magic.

The shadow of Mr. Magic has always been lingering in my mind. But it was two years later that I really understood the secret. In fact, as long as the method is correct, everyone can be Mr. Magic. What kind of method? First of all, Mr. Magic does not need to enter the market immediately after tossing the coin, but first finds an effective support and resistance level. After entering the order, he can stop the loss and leave the market as soon as the position is broken as soon as the order goes reverse.

If you do it right, let go of profits so that each profit can make up for at least two losses. Secondly, you can also use the different weight of each position to improve the overall winning rate.

Third, this will protect you from external interference. The pair rate is basically stable at 50%, which is already higher than those who chase the rise and kill the drop and the pair rate is lower than 50%. Our judgment is always influenced by our own biology and psychology.

When the state is good, it may be OK, but when the state is bad, it is actually not as accurate as the coin judgment. Recalling some of the orders that have just been made, someone often expresses emotion because his pairings are far less than 50%.

Fourth, the most important thing is that placing orders is not the most important, but the method of handling orders is the key to determining victory or defeat. I think that Mr. Magic must be an expert in order processing. A person with high skills is bold and can enter the market with a casual attitude that looks cool to outsiders. Others couldn't understand the key points and laughed at him.

In fact, he understands the connotation of futures more deeply than those who ridicule him!

19. How do you understand that futures are like football and war?

The futures market is very unique. In my opinion, only football and war are remotely similar to it. Let’s first talk about how it’s like war! First of all, futures is the most fierce money battlefield in the world. Every time it is like a war, it is a fierce hand-to-hand encounter.

Secondly, every time is a new challenge and a new beginning. Previous excellent results cannot help you in the slightest. You must go all out to accept new challenges, and previous failures do not determine that you will not win this time.

Third, the victory of the entire war is composed of countless large and small battles. We can win wars, but we can never win all battles, and there are even battles that we must voluntarily give up.

Fourth, the truly decisive battle may be one or two. Even if victory cannot be achieved in one or two times, we must not stubbornly fight to the death and cause the entire army to be annihilated. (The premise is that victory is based on 100% profit.) Besides, like football, miracles can happen at any time, and disasters can happen at any time.

For each specific situation, no matter how strong a strong team is, it may fail, and no matter how weak a weak team may be, it may win. Failure is inevitable, and the final winner just wins more and loses less, or wins the key games.

20. Why is it better to judge the level from the money-losing orders?

Just as we can better understand a person’s character from the mistakes he makes, can we better understand a person’s level from the money-losing orders? Why?

First of all, the first important thing about futures is to control risks. From the money-losing orders, we can see how his risks are controlled. Is it like letting go of gambling? Is it steady and calm? Or is it a hard-working and passionate one? Is it an overall strategy? Or a desperate street fighting style?

Secondly, it can be seen from the list at which part of the market he lost money. Is it a market worth taking a chance on? Is it going with the trend or against the trend? Should we take the initiative and resolutely stop the loss and exit the market, should our passive funds no longer be able to support it, or should we have a psychological breakdown in the violent market fluctuations and exit in a hurry?