The contract price has fallen below the previous low, reaching a minimum of 100.910 points. Many investors may enter short positions after the price breaks below the previous low. If I see the price stabilize after breaking below the previous low, I may also enter a short position.
☕
Note, it is crucial to set a stop-loss immediately after entering the market, as the market may not move according to our expectations. If it does not move as we expected, we need to exit promptly with a stop-loss.
As mentioned before, the costs of trading include commissions, spreads, and reasonable stop-losses. We must regard stop-losses as the most important part of trading; if we do not manage stop-losses well, it is equivalent to poor trading. If investors enter short positions in this market and hit their stop-loss, they should accept the failure and promptly adjust their mindset. When the price re-establishes above the previous low, we can use the fake-out strategy to enter long positions.