Techniques and methods for contract trading #优质合约内容官#

1 Fund Management
1. Reasonable allocation of funds: Do not operate with a full position; you can divide your funds into several parts, such as three or four parts, and only use one part for trading each time. For example, if the total account funds are 200,000, the maximum allowable loss is 20%, which is 40,000. You can use a loss plan of 10,000 for the first time, 10,000 for the second time, and 20,000 for the third time.
2. Control the risk of a single transaction: The amount of funds used for each position should not exceed 5% of the total funds. At the same time, it is important to clearly define the amount for each stop loss, ensuring that each stop loss does not exceed 5% of the total funds.
2. Market Analysis
1. Grasp the overall market trend: Identify the main trend and enter trades in the direction of the main trend. In an uptrend, you can choose to go long at pullback points; in a downtrend, choose to go short at rebound points.
2 Pay attention to key support and resistance levels: A support level is the price point where buying pressure increases when the price falls to a certain level, preventing further declines; a resistance level is the price point where selling pressure increases when the price rises to a certain level, preventing further increases. Consider going long near the support level and going short near the resistance level.
Three Position Control Aspect
1. Light Position Testing: When the market trend is uncertain, start with a smaller position, such as 1% of your capital, to test the waters and observe the market response.
2. Incremental Position Building: If the market trend meets expectations, positions can be increased in increments. For those with ample time, a strategy of placing a 1% base position at 4445, adding 1% at 4440, and 2% at 4435 can be used; for those with limited time, a 3% base position can be placed directly, and an additional 3% can be added upon reaching the replenishment level.
Pyramid-style averaging: In the case of trend trading where the paper profits have proven the direction to be correct, pyramid-style technical averaging can be performed, meaning that the position size for each subsequent addition decreases gradually.
Four: Stop Loss and Take Profit
1. Set Stop Loss: Once the market trend is contrary to your position, decisively set a stop loss. The stop loss point can be set at key support levels, resistance levels, or determined based on technical indicators. For example, when going long, if the price falls below the support level, a stop loss can be set.
2. Set Take Profit: When the expected profit target is reached, it is important to take profit in a timely manner. The take profit level can be determined based on the profit target, technical indicators, or market conditions. For conservative traders, a tiered selling approach of 60%-80%-100% can be used; aggressive traders may retain their base position and set a trailing take profit.
Five Trading Discipline Aspects
1. Strictly execute the plan: Develop a trading plan before trading, including entry points, stop-loss points, take-profit points, etc., and strictly follow the plan without arbitrary changes.
2. Avoid Overtrading: Do not trade frequently to avoid increasing transaction costs and risks. Choose to trade when market trends are clear and volatility is high, and avoid blind operations when market volatility is low or uncertain.