In-depth analysis of spot and contract strategies for #现货与合约策略 , pure dry goods sharing

In the investment field, spot and contract trading are two common methods, each with its unique strategies and risks. Today, let's discuss them in detail.

First, let's talk about spot trading. For beginners and investors with a lower risk tolerance, spot trading is a more friendly choice. One common strategy is trend following, using technical analysis tools like moving averages and MACD to determine trends. When the price breaks above the upward trend line, it's a good time to buy; when it breaks below the downward trend line, consider selling. Another practical strategy is moving average crossover, taking short-term moving averages (like the 5-day moving average) and long-term moving averages (like the 20-day moving average) as examples. When the short-term moving average crosses above the long-term moving average, it's often a buy signal, and vice versa for a sell signal. There's also the breakout strategy, which involves studying historical price data to identify key resistance and support levels. If the price breaks above the resistance level, you can buy; if it breaks below the support level, then sell.

Now let's talk about contract trading, which is more suitable for experienced investors who can bear higher risks. Contract trading allows for two-way operations and can use leverage, amplifying both returns and risks. When engaging in contract trading, it’s crucial to choose the leverage ratio wisely; one should never blindly pursue high leverage. Generally, beginners can start with around 5x low leverage and gradually adjust based on their market understanding and risk tolerance. At the same time, always set proper stop-loss and take-profit levels. A stop-loss helps control losses; for example, if the price fluctuates unfavorably by a certain margin, such as 5% - 10%, decisively close the position to avoid larger losses. Take-profit can lock in profits; when the returns reach the expected target, such as 20% - 30%, cash out in time. Additionally, always pay attention to market dynamics, such as the release of significant economic data or policy changes, as these can trigger significant market fluctuations.

Whether it’s spot or contract trading, risk management cannot be overlooked. In terms of capital management, do not invest all funds into a single asset or trade; instead, diversify investments. Control the proportion of funds invested in each trade, for instance, not exceeding 20% of the total capital. The mindset is also crucial; encountering losses is inevitable in investing, and one must not be swayed by emotions, avoiding chasing prices up or down.