Foreign exchange futures risk management must read: execute transactions as planned; keep a record of your trading results; limit your losses, constantly work hard for patience, perseverance, determination and rational behavior, and never enter the market because you can’t wait.
30 must-reads for foreign exchange futures risk management:
- Make a plan for your transaction; execute the transaction according to your plan.
- Anticipation and fear are the two greatest enemies of speculators.
- Keep a record of your trading results.
- No matter how much you lose, keep a positive attitude in the diversity plot.
- Don't be overconfident-it will become your greatest enemy.
- Constantly set higher trading goals.
- Setting stop loss is the key to the success of many traders-limit your losses!
- The most successful traders are those who do long-term trading.
- Successful traders buy when bad news and sell when good news.
- Successful traders are not afraid to buy at highs and sell at lows.
- Successful traders effectively plan time to conduct market research.
- Successful traders set profit goals for every trade they make.
- Don't ask for opinions everywhere before entering the transaction-facts are infinitely valuable and opinions are worthless. Simply put, successful traders are not swayed by the opinions of others.
- Constantly strive for patience, perseverance, determination and rational behavior.
- Never exit the market because you lose patience, and never enter the market because you can’t wait.
- Don't enter and exit the market too frequently.
- The best way to profit is to follow the trend.
- Unless you have a good reason, don't change your position in the market. Every time you make a trade, you must have a rationale or a clear plan; after that, unless there are clear signs of a trend change, do not withdraw.
- Losing money can't make a profit, but it can make speculators study carefully. Seize every opportunity to lose money and improve your understanding of market behavior.
- The hardest task in speculation is not forecasting, but self-control. A successful transaction is a difficult and annoying transaction. In the equation of success, you are the most important factor.
- The basic element of price changes is human emotion. Panic, fear, greed, insecurity, worry, pressure and indecision are the main sources of short-term price changes.
- Typically, when the market is at the top, the most people are unanimously bullish; when the market is at the top, few people hold a bull market view.
- Pay attention to long and short sets. In other words, if the deficit is shrinking, don't look too much.
- Remember, a one-month bear market can make you lose what you have gained in a three-month bull market.
- Find the "decisive factor" in each commodity futures. As the situation changes, we are ready to re-determine a factor at any time.
- Expand your source of market information; limit your source of market opinions.
- Never let a big win turn into a loser. If the market makes your profit fall by 20% from the highest point, stop the loss and exit the market.
- No one can know everything. Engaging in futures trading always faces danger.
- Trading requires four elements to succeed: knowledge, courage to control properly, money, and the energy to properly combine these three.
- Foreseeing that there will be a loss, Grace accepts the loss generously. Those who meditate on losses always lose their next opportunity, and the next opportunity is likely to be a profitable opportunity.