Heavy positions will kill you. I don't mean to die once, but to die frequently. There is a simple reason. Being a futures trader for a long time will inevitably lead to some extreme situations. An extreme market or emergency may cause you to lose more than half of your principal or even explode your position. If you walk too much at night, you will meet a ghost sooner or later. In the case of strictly controlling the stop loss during the day, it may be acceptable to occasionally heavy positions, but overnight heavy positions are definitely self-destructive.

Rule 2: Stop loss strictly. Be sure to establish a stop loss point when placing an order. When you reach the stop loss position, you must stop the loss unconditionally.

Large losses, or heavy positions, or hesitant stop loss. Anything can happen in the futures market. I often feel confident when I place an order. But after placing the order, it began to lose money, and then the more it lost, the more it lost. When I reached the stop loss point, I felt that I had lost too much and was unwilling to accept it. So give up the stop loss. As a result, the losses are getting bigger and bigger. From small losses to big losses. I put a finger in and refused to cut it off. Then I put my hand in and refused to cut it off. Then I put an arm in it, which made it harder to do it. Finally, I put my head in. The dead shoulder may be untied, but if it is not untied, it is death. Losses are part of the transaction. If you often have the habit of not wanting to stop loss, you will explode as long as you encounter a market that is gone forever. Again, in terms of probability, you will inevitably encounter a market that will never return. Therefore, not strictly stopping loss is also a kind of suicide.

At the same time, determine an unchangeable stop loss point when placing an order. At the stop loss point, stop loss unconditionally. Whether it is set well is a technical problem, and whether to set a stop loss point is a matter of life and death.

Rule 3: Go with the flow (go against the trend)

In the futures market, if someone is willing to buy at a higher price, it will rise, and if someone buys at a lower price, it will fall. In the spot market, when a steamed bread costs 50 cents, in the futures market, if there are many people competing to buy it, it is possible that steamed bread may rise to 5 yuan or 50 yuan. When 5 yuan bought the steamed bread, you thought it was too expensive, so you sold it. But I'm sorry, steamed bread continues to rise, and you're losing money. If you refuse to stop loss, you may go all the way up to 20 yuan or 30 yuan until you explode. After you burst, the price of steamed bread will always fall to 3 yuan, 1 yuan, or even to 1 minute. When steamed bread fell to 30 cents, you thought it was too cheap, so you bought it. As a result, it fell to 2 cents, 1 cent, and you were out of position again. Then the price of steamed bread began to rise again. In the futures market, such things are repeated every day. In 2008, copper was as low as 25,000 tons and dropped to 30,000 tons. Is it very cheap? Is it far below the cost? That's right. However, if you bought it at that time and dropped another 5,000 yuan, you still broke the position.

After the megatrend is formed, it always moves towards an extremely unreasonable price. Look at commodities such as soybeans before the financial crisis in 2008. Look at these goods after the crisis. You will find that after a big trend is opened, it always goes to an extremely unreasonable price. 10 years and 1 1 year to see cotton. The current soybean meal is also very likely to rise to a completely outrageous price level.

The skyrocketing market of a commodity often starts slowly, fluctuates, then goes crazy, and finally goes crazy. It's the same when you fall.