How to accurately judge the futures market?
Before entering the market, we should understand the fundamentals of futures: the basis of futures is spot, and the trend factors of spot will eventually determine the long-term trend of futures market. Therefore, before participating in the futures trading of a certain variety, we must first understand the factors that affect the market trend of this variety. Technical analysis plays an important role in market judgment: the former mainly analyzes the supply and demand factors that affect the market trend, and the conclusion can reflect the changes in the medium and long term market. The disadvantage of this method is that it is slow to respond and cannot accurately grasp the short-term fluctuations of the market. How to choose appropriate trading indicators: Different analytical tools can be used, such as morphological analysis, wave theory, Dow theory, etc. In addition, there are a number of auxiliary technical indicators. These indicators reveal the law of futures price operation from different angles, but sometimes due to different analysis angles, the early warning signals given by these indicators will be different or even completely opposite. Therefore, as a trader in the futures market, it is enough to choose one or two analytical tools according to his trading habits. Judging the trend is the key: the market can be divided into long-term trends and short-term trends. The long-term trend mainly reflects the market changes in two or three months and one to two weeks, while the short-term trend mainly reflects the market changes in the past one or two trading days or even one day. In futures trading, we must follow the principle that short-term trading conforms to the medium and long-term trend, because only in this way will there be more opportunities for profit and lower risks for traders. After fundamental and technical analysis, we must be convinced of the conclusion. So after market analysis, we should keep a certain distance from the market. Paying too much attention to the short-term market trend is likely to disrupt the correct analysis of the medium and long-term market. Stop loss plays an important role in futures trading: after determining the one-way direction, even if the accuracy of past prediction is higher, stop loss price must be set to control the loss within a certain range.