The futures market is highly risky. To achieve long-term stable profits, keep the following points in mind!
1. Core Trading Logic
Futures trading cannot rely solely on news and intuition. 20% of your effort should be on fundamental analysis to grasp the essence, and 80% should be on technical analysis to judge trends. But the most important factor is execution; a trading system validated by real combat is the key to profitability.
2. Moving Average Trading Principles
Whether you are a very short-term or medium to long-term investor, always remember this principle. Go long above the moving average and short below it. It is never too late to go long above the moving average; following the trend is the way to profit.
3. Two Major Trading Taboo
Trading against the trend and participating in choppy markets are major taboos! Never short during a rapid rise, and don’t go long during a rapid decline. When prices are fluctuating around the moving average, do not open a position; otherwise, your principal will be quickly consumed by frequent stop losses.
4. Follow Market Trends
Do not subjectively predict the market! Attempting to catch the bottom or top is a common mistake made by novices and can easily trigger stop losses, leading to significant losses. Following the actual market trend is the right choice for profitability.
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