Analysis of field trading


Edward Weston

May 24, 2021

1.Self-analysis in the trading.

A person's personality, attitude, advantages and disadvantages, ways to deal with problems, and even a period of health, mental state will all affect a person's trading process. In every transaction process, these subjective factors will have impacts, such as the indecisive people may not be able to execute in ending the loss, and the decisive people may stop loss in time, but may also stop profit too early. By analyzing yourself and your personality constantly, making the best use of your advantages, and bypassing the disadvantages, you will have your own trading style.

2.Make every transaction seriously.

Don't just think it over only after you suffered losses. When you make profits, you should also think about the reasons for that. Consider the possibility of each situation that could happen, and actively verify it.

3.Pay attention to the review of the historical data.

Because of the repeatability of history, observing the historical data repeatedly can improve the sense of trading. Especially in recent years, although there is no guarantee that the trend will coincide with history experiences for 100%, similar market trends are always happening. People who used to specialize in futures would print out the historical data of the past years for research, which is a large amount of work. But nowadays, there are lots of software that can provide historical data.

4. Improve capital management.

The adjustment of margin is the freedom given to investors by the futures market. The free choice of this authority will bring in the most direct and full exposure of human nature. People always have the strong inclination to use the entire margin, but this undoubtedly increases their risk. Using a high proportion of the margin will cause huge fluctuations for making profits or losses in the investment. It might cause capital bursts and the possibility of rapid destruction. Therefore, perfect capital management is essential. Controlling the risk strictly is the starting point of rational trading and the core and essence of trading activities. Survive before you are qualified to talk about development. The top-notch investing master Buffett told us some investment skills. The first is: do not lose money, and the second is: stick to the first one! Moreover, the master is paying so much attention to the risk, let alone ordinary people. For novice of futures, small amount and light deal is a simple and effective way to increase the "vitality" of futures. Reduce the impact of market fluctuations on the heart, and enhance the confidence of holding positions.

5. The results of digital trading.

Quantify the transactions over a period of time, whether it is a simulative one or a practical one. Show it in a digital way as long as it is a transaction, abandon the subjective cognition and false memory, and make evaluation and diagnosis of one's trading behavior effectively and objectively, including trading habits, trading period, trading preference, risk control and so on. On the one hand, you can have an intuitive understanding of your current trading ability; on the other hand, it can provide a reference for futures transactions and thoroughly improve the trading situation.


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