Self-cultivation of futures investors

In futures investment trading, each individual's trading methods and logic vary. However, successful investors share a common trait: they have grasped the essence of futures trading. Yet, this trading essence is not easily mastered and requires a certain level of self-cultivation.

Today, let's discuss the self-cultivation of a successful futures investor.

"Self-Cultivation of Futures Investors"

Futures novices: Usually, they set learning aside and only resort to "last-minute cramming" when faced with difficulties.

Mature futures investors: I'm familiar with this situation; the books have mentioned how to handle it.

Investment guru Warren Buffett regards lifelong reading and learning as a lifelong habit and self-cultivation.

Charlie Munger once commented:

"In my life, I have encountered smart people from all walks of life, and none of them does not read every day—none, not a single one. Warren's reading volume might surprise you; he is a book with two legs."Warren Buffett, who oversees the world's largest investment company, still insists on spending a lot of time reading various news, financial reports, and books every day, even at the age of 84.

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Why do investment masters like Buffett place such an emphasis on learning? Because they know that cognition determines the profit boundary of investors, and by continuously learning, investors can expand their boundaries and increase profits.

Therefore, if futures investors want to survive in the market for a long time, they must maintain the habit of learning. Learning can provide investors with new insights, help them master investment rules, and better grasp the market. In a sense, the results of trading are a reflection of a person's learning ability in futures operations.

Futures novice: What should I do when encountering a "black swan" event?

Mature futures investor: Do not be afraid when encountering issues, and persist in operating according to the trading plan.

Although futures investment has always emphasized the need to establish a viable trading system, a good trading system will ultimately be implemented by the user of the system—the investor. Therefore, a calm and composed, strong inner self that can adhere to rules is the most important factor in determining the success or failure of trading. Especially, the futures market always has some unexpected events, and in the face of those sudden changes, it is necessary to learn to control one's emotions, remain calm, and resolutely execute the trading plan.

Mature futures investors are well aware of the huge destructiveness of impulsive trading, which can seriously threaten the safety of investors' funds. Therefore, they will avoid trading when they are emotionally unstable. Even when they are emotionally stable, they will also operate according to the trading plan, trading strategy, and risk control. They only engage in trades within the trading plan, seize their own profits at the fastest speed, and avoid being affected by emotions and impulsive trading.

Futures novice: Why is it not as I expected? I cannot lose my principal, and I will never cut my losses.

Mature futures investor: When reaching the stop-loss line, quickly admit the mistake and do not let the error expand.Everyone aspires to be a master who wins every battle, yet the number of those who can achieve this is minuscule. A seasoned futures investor understands that to survive long-term in the futures market and achieve consistent profits, one must abandon perfectionism and be willing to admit mistakes.

Whether a trade is profitable is determined by the market, and what a futures investor can do is to set their own loss limit before trading. Once the price reaches the stop-loss level, they should immediately cut their losses. Even if we often misjudge the market, as long as we dare to admit our mistakes to the market and keep the losses within a safe and controllable range, we won't be crippled by a single trade. Controlling the stop-loss, managing funds well, and maintaining a favorable win-loss ratio are the trading strategies and skills in futures investment.

Futures novices: Must not miss every opportunity, even if it means working like 007.

Seasoned futures investors: Health is the capital of revolution, and it's important to balance work and rest.

Balancing work and rest is essential in any endeavor, and futures investment is no exception.

Soros once said, "Rest is actually a part of work. Only by distancing oneself from the market can one see through it more clearly. Those who are glued to the market every day will eventually be swayed by every minor fluctuation, losing their direction and being deceived by the market."

A seasoned futures investor does not spend 100% of their time on trading. They manage their time wisely, entering trades only when they see good opportunities and setting exit and stop-loss points. They spend more time on resting and enhancing their trading profitability.

In the investment market, a person's cultivation dictates their actions. Every buy and sell in market transactions implies the investor's cultivation and reflects the speculator's values and views on money. Therefore, the ultimate fate of a futures investor in the futures market is fundamentally determined by the investor's self-cultivation.

The above information is for reference only and should not be considered as advice for entering the market.

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