Fans often ask me how to open a position in contracts.
Today, I will summarize one of my basic frameworks for everyone:
First, buy 20%. If the purchase is wrong and you lose 10%, immediately stop loss, and the amount lost will be 2% of the total position.
If the purchase is correct and you gain 10%, immediately increase the position by 20%. If it rises another 10%, increase the position by another 20%. For the last time, increase by 40% directly to amplify the gains, and as long as there is no loss of 10%, hold the position. If it falls by 10%, immediately close the entire position.
The general idea is to minimize risk, similar to the king of speculation, Livermore. Of course, this is just a rough framework, and specific implementation will definitely encounter many uncertainties because the market is unpredictable. I often execute this method during trading, and overall, the results so far have been quite good, but it's not foolproof; it only reduces risk and increases the profit rate. When trading contracts, it's essential to have a method; otherwise, you can only become fodder.
Currently in a bull market, friends without direction should stay alert and not miss any market wave.