Only after the currency market exploded five times did I know the only secret to playing with contracts.

1. I just saw a piece of data. In the contract market, 20 billion positions were liquidated in the last month.

You said there is no money in the currency market? Who believes it? Tens of billions of liquidated positions are only the funds in the contract. What the currency financial market lacks is not funds, but synergy, especially the rising synergy that currency people long for.

Why liquidation? Small funds are fighting, and big funds are also fighting. Some people say that big funds pursue stability, and only small funds who want to accumulate wealth quickly will open high leverage and high positions.

It's a joke at first glance. People who pursue skyrocketing wealth never care about the size of their funds. Let’s make an assumption that all 1 million people have entered the contract market, and 20 billion is equivalent to 20,000 liquidation funds for each person. This is the calculation when all people participate in the contract and all contracts are liquidated. Recently, more than 90% of long positions have been liquidated. If all positions are liquidated, who is short?

It can be inferred from this that not all those who have liquidated their positions are scumbag currency traders.

The tens of billions of liquidations indicate at least one problem: 5x, 20x, and 100x leverage operators are ready to be liquidated at any time, regardless of the size of their funds.

two,

Yesterday, my article wrote that the currency market has fallen one after another. Why do you still dare not buy?

I carefully read a lot of comments. Some veterans have very clear understandings, but more people say this:

①, There are no bullets left.

②. If it falls, will it still fall?

③. I am afraid of losing but want to win, so I have to chase the rise and kill the fall.

④. While waiting and watching, the opportunity slipped away quietly.

⑤, no courage and courage.

If you don’t dare to grab cheaper chips, you probably have these five mentalities.

In fact, these mentality are too normal and have always been my mentality. I guess this is also the reason why people in the currency circle call themselves leeks.

The first four reasons above are all cognitive factors in contract investment, and the fifth reason is the fear of difficulty caused by lack of cognition. With enough knowledge, courage and courage will naturally come out.

Yesterday, I talked about two reasons why I didn’t dare to buy after the currency market plummeted: human fear instinct and the understanding of contract speculation. That is to say, in addition to psychological reasons, the most important thing is that there is no own contract operating system.

Therefore, the key to achieving the investment state of "I am greedy when others are fearful" is to establish your own set of contract practice systems.

three,

The famous investment philosopher Van Tharp once said: "What you trade is not the market, but the idea of ​​the market."

This philosophy is your investing operating system. However, how difficult is it to establish a practical contract system?

Before establishing an investment system, you must have your own investment philosophy and a clearer understanding of yourself, such as interests, hobbies, goals, knowledge and experience, skills, ability boundaries, etc.

And your own investment strategy, when to buy, when to buy, what to buy, how to buy, how to arrange funds, what is the investment ratio, etc.

Finally, you need to have an error correction strategy. What should you do if you make a mistake? This is not about jumping off a building or slitting your wrists.

When you see a lot of questions, I guarantee you are a first-rate person. OMG, investing is too difficult to learn. There are so many rules and regulations and knowledge theories. Even if you learn it, you may not make money!

Excellent investment masters say that to establish your own investment operating system, you must go through at least two bull and bear cycles: the first bull and bear cycle establishes the operating system, and the second bull and bear cycle verifies and corrects your operating system.

A bull-bear cycle in the stock market lasts for 6 to 10 years, while in the currency market, the currently recognized bull-bear cycle is 4 years. If you think about it mentally, it will take at least 8 years to establish your own operating system? At this rate, you might have starved to death.

Indeed, it is still possible to consciously establish your own investment operating system. Some retail investors have never established an investment operating system in their entire lives.

Four,

In fact, I have built many investment operating systems.

Currency valuation system, buying system, selling system, currency selection system, holding time system, etc. The only difference is that I used to operate the stock market and foreign exchange, but now I operate the currency market.

Due to human nature, it is really not easy to establish a complete investment system, and there is no guarantee that it will work.

Coincidentally, in the past six months, I successfully achieved 4 contract liquidations in currency market contract operations. This is simply a miracle of my life.

Every time after the liquidation, various reasons and reasons are found, and they also imitate the complaints of the majority of Leek currency investors: Who allowed it to repeatedly insert pins and waterfalls into the door?

One day, I had a sudden enlightenment and thought, "To hell with the operating system, it's too complicated." I only need one trick to ensure that from now on, I will see the green hills, make money until my hands are weak, and my position will never be liquidated.

This is my only secret to playing futures. It only has one sentence: rigorous position management.

five,

There are two reasons for a contract liquidation: the leverage is high and the position is full.

Benchmarks and positions are two aspects of position management: if you want high leverage, your positions should be extremely low; and conversely, if you want low leverage, you can increase your positions.

However, there is no need to complain that the market has reached its limit, or that the market has risen or fallen too fiercely. The outside world has nothing to do with us. We only need to be optimistic about our own funds and make absolutely safe arrangements.

The market will always rise and fall sharply at a certain point in time. The safest strategy is to put yourself in a safe. You can occasionally open the safe to breathe fresh air, but do not expose yourself to the fire of the short side or the long side.

Therefore, extremely demanding position management is the core of contract trading.

For example, if EOS is currently 3U, if you keep the liquidation price of your contract at 1.5U, your position will naturally not be liquidated.

Isn’t there a saying that goes, “If you keep the green hills, you won’t have to worry about running out of firewood”? If you don’t blow up your position, you will be strong if you have the guts.

There is an old man in the currency circle who has maintained half-positionism or dynamic half-positionism for many years. This is true for spot trading, not to mention our contracts? Therefore, this old man is the real master, and his operation is the highest level of investment.

Even people like Buffett, who are leaders in the world's investment community, retain US$128 billion in cash. Why don't we who play futures do strict position management?

Therefore, after dying 4 times in the contract battlefield, I realized that the only secret to playing contracts is position management.