I finally made some profit I lost in Nikkei futures market after several mistakes and cut losses few weeks ago. As my initial plan was to do a short in Nikkei, I hold on to my plan and further selling as the market came down few days ago. Till I think I had made enough, I closed all the positions and happy that I've made few hundred points within 3 days.
After more than 2 years in futures market, I realized it's not too hard to make money, yet it's too easy to lose money. Specially when you are not disclipine in cutting lose and too hurry to take profit when see some small profits, I guess that's human nature.
Specially as a broker, I always see clients stubbornly holding unrealized losses positions and refused to cut loss. When it's too tired and ready to cut loss, the damage is too big. This happen to everyone.
To sum up a few important notes in futures trading, I think it is very important to:
1. To have a plan before enter any markets. Know the entry level and exit level, which includes the cut loss or profit taking level. Always know whether it is a long term or short term trading
2. When it's wrong, must be disclipline enough to cut loss. Don't make the wrong term into long term and let the damages grow bigger and bigger
3. Always follow trend. Don't hold a wrong term buy in a bearish market and don't hold a wrong term short in a bull market. In a volatile market, always know the cut loss point and realized the money when it's in the money
Well, saying is easy and action is difficult, specially when you are trading with emotions!
Always prepare for the worse and hope for the best. Happy trading!
After more than 2 years in futures market, I realized it's not too hard to make money, yet it's too easy to lose money. Specially when you are not disclipine in cutting lose and too hurry to take profit when see some small profits, I guess that's human nature.
Specially as a broker, I always see clients stubbornly holding unrealized losses positions and refused to cut loss. When it's too tired and ready to cut loss, the damage is too big. This happen to everyone.
To sum up a few important notes in futures trading, I think it is very important to:
1. To have a plan before enter any markets. Know the entry level and exit level, which includes the cut loss or profit taking level. Always know whether it is a long term or short term trading
2. When it's wrong, must be disclipline enough to cut loss. Don't make the wrong term into long term and let the damages grow bigger and bigger
3. Always follow trend. Don't hold a wrong term buy in a bearish market and don't hold a wrong term short in a bull market. In a volatile market, always know the cut loss point and realized the money when it's in the money
Well, saying is easy and action is difficult, specially when you are trading with emotions!
Always prepare for the worse and hope for the best. Happy trading!
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