Why learn to lose money in the futures market first?

This sentence I often say is not a joke, although whenever I hear it, someone always laughs like a comic bag thrown by a crosstalk performer. Let me talk about the true meaning of this sentence from several aspects.

(1) Pay the money clearly.

At the beginning, many people who entered the market with insufficient psychological preparation lost all their money, that is, they lost all their money.

I once saw it with my own eyes when 1994 American coffee soared. A customer has an empty bill in Man Cang. He was so anxious that his finger computer acted as a broker and shouted, "Stop it!"

How to hold it? Soon, he was kicked out of the futures market in a few minutes. Is this wrong compensation?

This customer doesn't know how to set a stop loss or how to judge the situation. I don't know how to control the risk. Is it because I lost my money? This is also the customer's first order, and I have never seen this customer since. I think maybe he has no chance with futures from now on! Because in the end, he didn't understand what was going on. The future is just a memory of disaster and fear for him.

How can I make it clear?

It is to know the huge risks like the back of your hand, and then lose money according to your own plans, ideas and expectations.

This doesn't sound good. It looks like a joke, but it's not. I'm not asking you to take the initiative to find the meaning of losing money, not asking you to lose money.

The purpose is of course to make money. What I'm talking about is to have a specific plan every time: if the market goes against the market, at which price will we appear and how much will we lose when we leave. Admit defeat rationally. But that doesn't mean we lost the whole war. Don't worry, opportunities will follow. As long as we have the strength, we will win at any time.

What I mean by "clear compensation" also includes: you should know in advance what impact you will have on your overall operation after losing money, whether it has a significant impact, and what adjustments need to be made in strategy and tactics. It also includes the influence on the mentality.

(2) Compensation is meaningful.

Not every list that loses money in the market is a bad list, and not every list that makes money is a good list. The key to an excellent trader is reasonable compensation and good earnings.

What is reasonable compensation?

First of all, the ratio of income to risk should be reasonable, that is, how much risk to take and how much profit to seek.

For example, the market goes against the trend and is ready to pay 30 thousand to leave. If you go right, you can earn 3,000 yuan before reaching the next resistance level and support level. Is this a good reason to enter the market?

If the market goes against the trend and you really lose money and leave the market, then I think your loss is unreasonable, because you have taken the risk ten times greater than your desired profit, and it seems that you have completely forgotten the concept of "small and broad".

You are "nurturing the small with the big", even if you make profits for nine times in a row, it is not enough to pay the bill at one time.

But how confident are you that you will continue to make profits? Operating in this way of thinking, we have won the battle before entering the market.

Don't you think it's more meaningful if the income risk of the two is more than the reverse compensation?

Secondly, we should set an effective support level and the price of leaving after the resistance level, that is to say, we should set a threshold for you to leave, so that you can have a reason to rely on risks.

The gateway is the price that both sides compete fiercely, and here we can verify the overall development trend at a very small cost. In these fierce battles, the classic drama of the futures market is often staged.

Third, if it is a rapidly rising market and a sharply falling market, you should follow the trend, and the above two conditions have no reference value. What should we do?

1) The small volume will continue to progress in the expected direction as the market continues, and then gradually increase the position. The first consideration is to control risks.

2) If the momentum is slightly reversed or stagnated, you will leave immediately regardless of profit or loss. Remember, we dare to make any kind of market because we can decisively control risks.

(Some people say that you should be bold in making orders, while others say that you should be steady. In fact, they are all right, that is, overall stability and local boldness. Overall stability and personal boldness. Both are indispensable)