Importance of fund management

Stop loss strategy: Stop loss is an important part of fund management. It should not be established based on the market trend chart, but on fund management.

Floating loss tolerance: In the long run, the stronger the ability to bear floating losses, the greater the possibility of making money. This is the natural advantage of large funds and light positions.

Trading mentality

First consider the safety of the principal: The first thing to consider when trading is the safety of the principal, and then the profit.

Avoid quick success: The problem of many traders is that they are too eager for quick success, lack patience and long-term planning.

Reasonable expectations: Traders need to clarify their profit expectations and formulate trading strategies based on this expectation.

Challenges of contract trading

The difficulty of making quick money and huge profits: The difficulty in contracts is to make quick money and huge profits, which often leads to many people being doomed.

Capital scale: Contracts, especially medium and long-term transactions, require a certain scale of funds to ensure the safety of positions and the freedom of advance and retreat.

Trading strategy volatility management: The secret to profitable margin trading is to be able to withstand fluctuations. The advantage of large funds is that they can withstand large fluctuations with light positions without large capital withdrawals.

Profit process: Traders need to have a very clear understanding of their expected profit process and formulate and execute trading strategies based on this process.

Differences between retail investors and large institutions Advantages of large institutions: Most of the money earned by large institutions and large funds comes from retail investors' stop losses, which reflects the shortcomings of retail investors in fund management, stop loss strategies and trading mentality.

Conclusion

Contract trading is an industry that requires long-term planning, patient execution and a good mentality. Traders should pay attention to fund management, clarify their profit expectations, and avoid being eager for quick success and excessive pursuit of huge profits. Only in this way can they be invincible in the fierce market competition.