1: Position management in contract trading: the art of light and heavy positions
In the world of contract trading, position management has always been a controversial topic. Some people advocate light position trading in order to maintain a stable mentality and peaceful operation; others tend to trade heavy positions, hoping to make a comeback when the opportunity comes. But is this really the case?
2. The controversy between light and heavy positions
Supporters of light position trading believe that this method can keep the account funds stable and avoid psychological pressure and imbalance caused by fluctuations in profits and losses. They are against heavy position trading, fearing that they will face huge losses if they make a mistake in judgment.
However, supporters of heavy position trading believe that only heavy position trading can quickly accumulate wealth when opportunities come. They criticize light position trading for being inefficient and believe that light position trading cannot bring considerable returns in the face of excellent opportunities.
3: Combination of light and heavy positions
So, is there a way to combine the advantages of both while avoiding their disadvantages? The answer is yes.
In contract trading, the best situation is to use a combination of light positions and heavy positions. Light positions can be used for daily trading to explore the market rhythm and find opportunities; while heavy positions are used to seize those high-probability opportunities and achieve quick profits.
IV: Practice of Position Management
Specifically, 95% of the trading orders can be set as light positions, with the position controlled within 10%. This way, you can keep your account stable while constantly testing the market. The remaining 5% of the trading orders can be set as heavy positions, with the position ranging from 20% to 50%, waiting for the perfect opportunity to strike.
Of course, heavy positions are not used casually. Heavy positions should only be considered when the odds of winning are extremely high. At the same time, a stop loss point should be set for each transaction to prevent huge losses caused by small probability events.
Five: The secret to becoming a contract master
Want to stand out in contract trading and become a real master? Then learning position management will be a key step. You need to learn to flexibly switch between light and heavy positions, and adjust your positions according to market changes and your chances of winning. Only in this way can you go further and further on the road of contract trading.
In short, position management in contract trading is an art. Only by mastering this art can you remain invincible in the fierce market competition.
