If a detailed action plan is not made before the transaction is implemented, then traders have no clear and specific understanding of when and where to quit the transaction, how much they can lose or how much they can earn. This kind of transaction plays with the heartbeat, can only follow the feeling, and often leads to complete failure. A tutor once gave me the following investment motto: "All fools know how to enter the market, but only the real wise know how to exit the market."
2. Improper selection of trading varieties or improper fund management.
You don't need huge investment to succeed in the futures market. The sharp fluctuation of several months has prompted major futures exchanges to raise trading margins one after another. Mini futures contracts have become one of the most popular contracts for large and small traders in recent years because of their low margin requirements. The data shows that traders with capital accounts below $5,000 are more likely to succeed in futures trading, but customers with capital accounts above $50,000 are most likely to fail in desperate trading. Part of the reason for the success of the transaction can be attributed to proper fund management, rather than concentrating all chips on risky "family" transactions.
3. Expect too much and act too quickly
If traders expect to get rid of the basic work in the initial stage and fly to the sky by a few very successful transactions, usually the cruel reality will crush their wishes. Just like doctors, lawyers or company bosses, traders without years of training can't be successful traders. In all research fields, success requires hard work, extraordinary perseverance and talent, and futures trading is no exception. Investing in futures is not easy. The so-called futures trading is a shortcut to get rich overnight, but it is a beautiful lie woven by people with ulterior motives. Before becoming a successful full-time trader in your dream, you should try to become a successful part-time trader.
4. No stop loss measures were taken.
The use of stop-loss measures in futures trading can ensure that investors can clearly control the risk limit of funds in specific transactions and confirm the loss of transactions. Protective stop loss is a good trading tool, but it is not perfect. The price fluctuation limit may just exceed the protective stop loss point. The large fluctuation of commodity market highlights the importance of using protective stop-loss measures. Price fluctuation is a fact that all futures traders must face and consider. All investors must understand that not every protective stop loss action is correct, and plans should be made in the opposite direction accordingly. Remember, there is no perfect way to trade futures.
5. Lack of patience and principle
Failed transactions often have the same characteristics, and the importance of patience and principle to successful transactions has almost become a cliche in futures trading. A typical trend trader will trade according to the trend and observe the market patiently to see if it will last. They often have unexpectedly huge profits. Don't trade for the sake of trading, and don't trade for the sake of change-wait patiently for an excellent trading opportunity, then act cautiously and seize the opportunity to make a profit-the market is the market, which can't be replaced by anyone, and no one can force it.
6. Go against the trend or try to be the ultimate.
Human nature likes to buy low and sell high or sell high and buy low. Unfortunately, the futures market has proved that this is not a means of profit at all. Investors trying to find the top and bottom often go against the trend, making buying high and selling low a harmful habit. In the rebound of 20 10 precious metal market, the prices of gold futures and silver futures hit a record high in the past 30 years, which is a good proof that although the prices are in the stratosphere, the market still keeps rising. Investors who think they are safe at the top have encountered unprecedented waterloo in the 20 10 precious metal market.
7. Stubborn, against the market
Most successful traders don't stay in the loss position for long and spend too much money. They will set a strict protective stop loss, once they touch that point, they will immediately cut the meat (the loss is usually small at this time), and then transfer the funds to another transaction that may be profitable. Investors who stay in the loss position for a long time and hope to turn losses into profits in an instant are often doomed to failure. Usually, people like to average the expected annualized income or cost and increase their positions when the price falls (for a long time). Market experience has proved that this is a bad idea and very dangerous.
8. The transaction frequency is too high
It is also wrong to conduct multiple transactions at the same time, especially when there is a large-scale loss. If trading losses accumulate, it's time to clear the position, even if you think that doing other new transactions can make up for the losses caused by previous transactions. Being a successful futures trader requires concentration and sensitivity. It is absolutely wrong to do too many things at the same time.
9. Don't blame yourself, blame others.
Don't blame your broker or others when you make a loss-making transaction or keep losing money. You are the one who decides whether your transaction is successful or not. If you feel that you can't strictly control your own transactions, find out the reasons for this feeling. You should change immediately and strictly control the fate of your transaction.
10. Incomplete market analysis
You can know the short-term trend of the market through the daily chart, whether it is technical or fundamental, but the long-term weekly chart and monthly chart of the same market can provide completely different observation angles. When planning a transaction, we need to carefully get a more comprehensive perspective from the long-term trend chart. Fundamentally speaking, observing long-term trends can also ensure that you have a more comprehensive understanding of what is happening in the market. Failure to understand and track the key basic knowledge and information in the market will lead investors to become frogs in the well.