Futures risk education

How investors control risks

As investors in the futures market, especially newcomers to the futures market, when conducting futures trading, the most important aspects should be paid attention to:

1. Strictly abide by all risk management systems of futures exchanges and futures brokerage companies. If you violate these systems, you will be in a very passive position.

2. The capital and scale of investment must be proper and appropriate. If there is a problem with the funding channel, once tightened, it will inevitably affect the transaction; However, if the transaction scale is inappropriate, you will face huge risks of exceeding your own financial resources and capabilities if you place orders blindly or excessively. Remember that the futures market is a venture capital market, not a casino. Don't downgrade yourself to a gambler.

3. There should be a good investment strategy. According to your own conditions (capital, time, health, etc.), cultivate good psychological quality, constantly enrich yourself, and gradually form your own investment strategy.

4. Pay attention to information, analyze the situation, and pay attention to every link of futures market risk. The futures market is a place full of news. We should gradually develop our analytical ability and fully grasp valuable information. At the same time, always pay attention to the changes in the market and improve the sensitivity of your response. Remember, the market is always right.

Market risk is unpredictable, but it can be prevented through analysis. In this regard, investors need to do a lot of work. The most important thing is that when investing in the market, they should first start from the familiar varieties, do a good job in the basic work, start from the fundamental analysis, supplemented by technical analysis, and start from hedging futures. We must not go against the trend. We must set a "stop loss point" at the initial stage to prevent losses from expanding and making it difficult to retreat.