Lessons from a Futures-trading Veteran for Lifelong Benefit

WikiFX Strategies (19 Mar.) - The following are lessons summarized by a futures veteran for your reference.

1. If the market has been gaining for four days in a row, dont long your position anymore as there is less room for further upside.

2. Stay simple in both tools and ideas when trading futures.

3. Principle of trading trend: find support in an uptrend and look for resistance in a downtrend.

4. Its time to exit the market when the reason you bought it disappears.

5. Never get over-optimistic when a bull market runs, and vice versa.

6. Target only at tradings with a profit ratio greater than 70%. One trading per month may bring you enough earnings sometimes

7. Buy what you know well, and sit on the fence if the market is unreadable. Adopt a wait-and-see attitude is also a strategy.

8. There is no need for daily futures trading, but a necessity for everyday analysis.

9. Go long on long positions and go short on short positions. Try to sell high and buy low in a small size if there are corrections, but only operate so in the short term.

10. People who do not analyze the price charts earn the most.

11. Most of the profitable futures traders rely on the technical band operation.

12. Intervene only at two timing: buy low when the momentum behind the selling disappears and go long when that behind the buying emerges.

13. Three treasures in futures trading: mentality, tactic, and capital management.

14. Averages work better than K-lines. While the latter is helpful for capturing reversals, the former tells trends. Combine them two, and you will read the market more clearly.

15. Building up your own operation model do cost your time, but will bring you a lifelong benefit

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