Category: Money Tips Date: 2005-12-19
Why is a loss of
Futures market is a very attractive market, which is a common, under recognized rules of the game, their own decisions, to determine a market transactions are carried out. Its broad bond system to give many opportunities for small. enabling people to reap huge profits, indeed, futures can make a person rich. people to join the pre-market can only see this point, the original futures trading so simple, it's gained bought, fell to sell, you can make big money, get the highest price and the lowest count what to do if your position will be full of how much money, and then make their own calculated the number of infections excited, excited exceptions, as simple as that, and then confidently into the market Bosha.
This time people do not know the financial markets is not a chart on the screen in his eyes so simple I do not know access to financial markets need to know what kind of knowledge, have eyes only for buying and selling start point might be to try the sweetness of the natural confidence that initial victory Zeng, full warehouse into a full position, and gradually he found this time how the old market with their own are trying to sell on the up, bought on the down, and the reverse entry point and the timing are good, the market seems to reverse the momentum backward in his is their own deal a few hands. That is the magic of the futures market, big money and even a row is very easy to make big money on several occasions, but to keep the profit for a long time to keep the difficulty of extreme profits. Each futures who have had the experience of making money , many people have had a continuous period of time the experience of several big money, but the ability to keep profits has few, and the final result does tend to let them down, the result is that the market only a few people can learn by benefits, and even profits.
In the commodity spot market, if buyers and sellers deal, the general is "win - win" type of win-win results, while in the futures market, trading of futures contracts is "win - negative"-type results, therefore, under any circumstances there must be some investors will be at a loss in the passive situation. futures market if investors want to become a long-term, stable winners, it must be established in line with market conditions, investment principles.
Market transactions are many ways, with a little variety is not an exaggeration to describe the various ways in trading profit potential, which is futures lies its charm. This charm has attracted many investors to participate in futures trading, everyone think that they can succeed, however, precisely because the diversity of trading methods, resulting in difficult to find investors to suit their way of trade because the market in different stages of transactions to their corresponding way in profits, which makes investment are an illusion: the market opportunity is everywhere and every day there are people making money may be why there are always investors also fail to seize it is easy to get lost in this illusion, this kind of illusion is that investors have missed the root causes of any chance are very sorry, will self-blame, because he thinks he is capable of this opportunity to grasp the market inclusive, often lead investors to no way to determine the root causes of their own transactions, but the actual operation, the more close to the market more vulnerable to a variety of other factors, such as market sentiment, the major access to the news shocks, and the prices run the see-saw, can make a trader could not bear the psychological pressure of making the wrong judgments, and this is the root of a loss .
A city of traders entering the period is likely to be an intuitive trader, they often rely on their own intuition to go on the market transactions, because of his understanding of the market and practical experience is limited, they are such intuition is often an illusion. For example said that in the rising trend, a novice to see certain commodity will be impatient to want to go straight rose short, even quilt the Opening, which in their daily lives the concept of buy low and sell high on, and some Traders saw the former K-line appears in some bullish patterns, then commodity prices did rise, and it appears that this pattern will be bullish. In fact, his view is generated by the previous system, a kind of cognitive dependent. But history is not simply repeat, "this time" is not equivalent to "the last time", past experience can not be judged based on the present.
For the novice entering the period of the city, the greatest misfortune was his intuition often led to his mistake. At last year's bull market in copper, a look in the right direction Quemo investors make money, why is it that he is Copper has always been held more than a single, but the copper one up, he always considered the price rose too fast, too fast to be adjusted, so the first level of the warehouse would like to buy such prices down, I did not realize the price of copper rose to a did not turn back, always rose to 30000 points, angry investors crying in the corner who regret not cope.
Currently engaged in futures trading of domestic investors have different backgrounds, has done industry, there are to do spot trading and so forth. Many people, if on the date of management, trade negotiations, inviting guests and public relations, in order to expand the market can be said that first-class They are already familiar with the deal at the mall. However, investment in various futures, it is to deal with the futures market, and the market is always right to follow the market need for professional knowledge and technology, and these knowledge and technology is the vast majority of investors do not , and nor is it can be learned in a short time, so that the majority of investors, but relies on intuition and knowledge to operate the spot trading futures, the results also is self-evident.
On what basis to make money
I am in the futures market has experienced its ups and downs, the finally selected the mechanical trading system as the primary basis for investment decisions.
What is the system
The concept comes from the human system, long-term social practice, the simple point of view: is to write a set of sophisticated trading methods into a program and then into the computer. With the directives issued by the computer to guide us to complete every transaction. The system is that the people from the Recognizing the link between local matter as a whole of a scientific concept. systematization that is, on the understanding of this awareness, in an orderly way of visual performance and the implementation of it out.
Financial markets are complex, the more complicated things that more needs to be such a systematic approach to interpret and deal with. Investment is also a cumbersome and complex activities, a loss of transactions, in addition to price fluctuations because of the complexity of the factors themselves created, there is a variety from the investor's own instability. to long-term survival in the financial markets and to maintain a stable profit, we must fully understand the basis of the market to establish an effective system oriented measures as a way to help rule out the prices and sentiment on a variety of interfering factors arising from transactions, to ensure that each transaction is low risk and high returns.
Trading system's concept is a long-term traders in the market, tempering explored and summed up is that the law side of the market and overall understanding of the formation of the transaction system.
Trading System principle: the price rapidly changing, with the complex to describe the complex and counter-productive and detrimental to investors in real-time to make rapid and effective response. Using mechanical, principled, all data must be quantifiable principles. Accurate and efficient trading system to describe the market can not be the market's surface blinded by a large number of random factors.
(1) trading system is complete and objective, we must go through a long-term statistics and practice, to prove its ability to stabilize profitability. The system of transaction is of a scientific-based method of investment transactions.
(2) The trading system is a complete system of trading rules. It must be right investment decisions made by the various events associated with the specific requirements. Such provisions must be objective, the only, and does not allow any different interpretation.
(3) The trading system is characterized by its integrity. Not only a complete transaction cycle, the various decision points, including the entry point, exit point, and then approach point, and then exit points, and other conditions are clear and specific provisions, which to form a complete decision-making chain.
(4) a transaction does not wait and avoid the system is not a perfect trading system. A good trading system, no restrictions on profit, only to rein in losses. System Trading emphasize long-term stability of the overall revenue, rather than emphasizing 1:01 to gains and losses.
