Many fans are curious about how I operate contracts, so today I'll share with everyone my opening position strategy.
First, let's talk about the first step: initially buy 20% of the position. This is like sending a small troop to scout the battlefield, to see how the market reacts.
If the purchase is wrong and the market doesn't move as we expected, resulting in a 10% loss, don't hesitate at this point; immediately cut losses. When calculated, this loss would only account for 2% of the total position, which is manageable and won't cause significant harm.
If the purchase is correct and the market moves in our direction, resulting in a 10% profit, then we need to be decisive and immediately increase the position by 20%. If it continues to rise by another 10%, we add another 20%. When the right opportunity arises, we increase the position by 40% in one go, thereby amplifying our gains. After that, as long as we haven't lost 10%, we hold steady. However, if the market reverses and drops by 10%, we shouldn't hesitate; quickly close the entire position to protect the profits we've made.
That's the general idea; the core is to minimize risk, somewhat similar to the trading philosophy of the king of speculation, Livermore. However, this is just a general framework; in actual operation, there will definitely be various uncertainties, as the market is ever-changing, and no one can predict what will happen in the next second.
When I trade, I also follow this thought process, and so far, the results have been quite good. But we must understand that this is not a guaranteed profit method; it only helps to reduce risks and slightly increase profitability. In contract trading, it is essential to have a method; otherwise, one can only be a victim in the market, getting cut down time and again.
