Techniques and methods for making contracts #优质合约内容官#

1. Fund Management Aspect
1. Reasonable allocation of funds: Avoid full position trading; instead, divide your funds into several parts, such as three or four portions, using only one portion for each trade. For example, if the total account balance is 200,000, the maximum allowable loss is 20%, which is 40,000. You could adopt a loss allocation plan of 10,000 for the first trade, 10,000 for the second trade, and 20,000 for the third trade.
2 Control the risk of a single transaction: The amount of funds for each position should not exceed 5% of the total funds. At the same time, the amount for each stop loss should be clearly defined, ensuring that each stop loss does not exceed 5% of the total funds.
2. Market Analysis
1. Grasp the overall market trend: Identify the main trend and enter trades in the direction of the main trend. In an upward trend, you can choose to go long at pullback points; in a downward trend, choose to go short at rebound points.
2 Pay attention to key support and resistance levels: Support level is the price level where buying pressure increases when the price falls to a certain position, preventing the price from continuing to drop; Resistance level is the price level where selling pressure increases when the price rises to a certain position, preventing the price from continuing to rise. Consider going long near the support level and going short near the resistance level.
Position Control Aspect
1. Light Position Testing: When the market trend is uncertain, start by testing with a smaller position, such as 1% of the capital, and observe the market reaction.
2. Build positions in batches: If the market trend meets expectations, positions can be increased in batches. For those with ample time, a strategy of placing a 1% base order at 4445, adding 1% at 4440, and adding 2% at 4435 can be adopted; for those with limited time, a 3% base order can be placed directly, and an additional 3% can be added upon reaching the re-entry point.
Pyramid-style position scaling: In the case of trend trading where the profits on the account have proven the direction to be correct, pyramid-style technical scaling can be carried out, meaning that the position size for each additional entry gradually decreases.
Four Stop Loss and Take Profit Aspects
1. Set Stop Loss: Once the market trend is contrary to the position, decisively set a stop loss. The stop loss point can be set at key support levels, resistance levels, or determined based on technical indicators. For example, when going long, if the price breaks below the support level, a stop loss can be set.
2. Set Profit Taking: When the expected profit target is reached, it is essential to take profit in a timely manner. The take profit point can be determined based on profit targets, technical indicators, or market conditions. For conservative traders, a tiered selling approach of 60%-80%-100% can be adopted; aggressive traders may retain their base position and set a trailing stop.
Five Trading Discipline Aspects
1 Strictly execute the plan: Create a trading plan before trading, including entry points, stop-loss points, take-profit points, etc., and strictly adhere to the plan without arbitrary changes.
2. Avoid overtrading: Do not trade frequently to avoid increasing transaction costs and risks. Opt to trade when market trends are clear and volatility is high, and avoid blind operations during periods of low or uncertain market fluctuations.