At the request of some friends, I would like to write about how futures novices can grow from a small capital of tens of thousands to a large capital, and how to earn their first million.
I have been trading futures for 15 years, and I lost money in the first 6 years. I am a person who is slow to awaken. I basically made mistakes in all the mistakes and pitfalls in trading. I made many detours and wasted a lot of time. From the initial dozens of back-and-forth transactions a day, to now 1 or 2 trading opportunities in 1 or 2 months, and an average of 10 signals a year, mainly in the trend band, I have gradually found a method that suits my personality.
My view on futures is that if you want to make a profit, you must have the following three points. The same is true for the cryptocurrency trading market. #BTC #ETH
First, you need a trading system that suits you
I personally recommend following the trend and the band route. Because many novices, at the beginning, do not learn the concepts and methods well, and the rules of futures trading at any time, T+0, and cheap handling fees have led many people to trade frequently, thinking that they can make hundreds or thousands of dollars a day, and in the long run, they think it is incredible.
However, the results prove that frequent short-term trading can make stable profits in this market for only 1% of the market for several years. I believe that students who are already doing this will have this experience. Why? This is like running a business. If your company makes decisions every day, the more decisions you make, the more mistakes you will make. This is human nature and cannot be avoided.
Don't think that you are gifted, smart, and have better control over human nature than others. This 1% of people will be you. At the beginning, I also thought that I would be in the 1%. As a result, I took a detour of losses for 6 years. The last word is that everyone's IQ is actually about the same. We must choose things with a high winning rate and easy success, and try to be pragmatic and objective in looking at the problem.
The system I am currently using is biased toward trends. The complete system includes the following points:
1. Determine the style you are good at, whether it is band, arbitrage, programmatic, or something else?
2. What is your entry signal? When will you open a position? What is the period of the K-line?
3. Fund management, how many positions are required to open a position for the first time, and do you need to add a position midway?
4. If there is a loss, what is the daily loss amount and the maximum loss amount?
5. How to leave the market if you make a profit?
6. The maximum drawdown of funds needs to be reasonable.
2. Plan your fund management plan
When you have the correct trading concepts and methods, it's like fighting a war. Strategically, we are correct and 70% of the matter has been successful. The rest is to formulate tactics! !
The formulation of tactics, when applied to futures, is your fund management. Funds are your troops and you are the commander. Therefore, you must pay special attention to your troops and do not fight casually. In other words, do not trade casually if you are not sure. The principle remains the same.
Let’s talk about how to accumulate funds. This is the plan to decide how to earn 1 million. Many people have a misunderstanding. They think that they have less starting capital and less capital, so they should trade more and accumulate less to make more. As a result, their mentality becomes anxious and leads to about 70% The losses are all unnecessary signals from outside the system.
When I entered the trading industry in 2005, I only lost tens of thousands with a capital of 1 million. In the end, I made back 1 million. When I re-entered the market with a small capital, I remember one trade for which I had been waiting for three months.
My personal opinion is:
1. When you have less money, and your futures funds are less than 100,000, you should reduce the number of transactions, be patient, and take a heavier position. It's like a war. When we have fewer troops, we should focus on our advantages and focus on opportunities to take a heavy position! Otherwise, it's difficult to accumulate profits. With 50,000, a 20% profit per year is only 10,000. The time cost is too high. When the funds exceed 1 million, you can operate appropriately and steadily. The heavy position and risk here are not contradictory, and it depends on the accuracy of our entry signal! !
2. When you have little money, you can appropriately shorten the cycle to 60 minutes to enter the market. If you want to enter the market based on the daily K-line chart, sometimes the signal may only come once every 1 or 2 months, and many people may not be able to wait. The method is the same as the daily K-line chart, so you can think more about this.
There are several big trends in the futures market every year. I believe that anyone who has seen the big trends has a personal experience, that is, if I catch this wave, I will make a fortune. Yes, if we can seize it, optimize how to hold a profitable order, and place an order, we will be able to make a profit of 1 million very quickly.
three. Simple things, done over and over again!
Afterwards, if you feel pretty good and have made a profit, then please be more patient. You have already found a method. At this time, don’t add new things, don’t learn complex technologies, and don’t be fooled by others. Who are the big guys in futures? If we learn more advanced theories, we will make more money, etc. We must learn our own tricks. The rest is to use time to constantly verify our system and polish ourselves. Patience, philosophy, and structure. These are my personal thoughts.
Profitable order patterns are repeated without making additional transactions. In fact, the philosophy of doing things in all walks of life is the same. The same skills are repeated, practice makes perfect, and you become better and better. As time goes by, you will find that you are the winner! !
My understanding is that trading is a long-lasting marathon. Take one year as a unit and make a good profit and loss summary, enlarge the cycle, and make good capital rules. You will find that it is easy to make a profit in futures, and trading is also very fun. matter!
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