News summary
Futures market veteran Hu Wensheng emphasizedbingoshowdownfreetickets2022, Losses for novices are unavoidable, so it is recommended to avoid large capital operations and excessive leverage. He advocated using a combination of fundamentals and technical aspects for medium and long-term trend trading, and emphasized the importance of capital management and reasonable income expectations.
Newsletter text
[Loss becomes the rule for novices in the futures market. Professional trader Hu Wensheng shares his experience] Hu Wensheng, an experienced futures market trader, issued early warning to novice investors. He pointed out that in the futures market, it is almost normal for novices to lose money, so when starting trading, it is recommended not to invest a large amount of money and avoid using leverage or borrowing to invest. The size of funds is not the most important factor in a transaction. Correct market judgment and tight trading orders are the key. [In the long-term journey of the futures market, patience and tenacity are the keys to success.] Hu Wensheng emphasized that the trading industry requires long-term training, and achieving stable profits usually takes more than ten years of arduous process, during which the psychological pressure is extremely great. He mentioned that even after a large profit, the principal should be withdrawn in a timely manner rather than increasing the size of the capital. After the scale of fund management is expanded, expected returns should be reduced and the holding cycle should be extended to control retractions and achieve steady growth in the funding curve. [Change in trading strategy, from short-term to medium and long-term trend trading] Hu Wensheng revealed the change in his trading strategy, from early short-term trading to medium and long-term trend trading, adopting multiple hedging methods, focusing on the general direction, and ignoring small retractions. He pointed out that as long as the general direction is correct, profits will emerge over time. At the same time, he pointed out that frequent transactions are not feasible and technical analysis cannot solve all problems. [In the face of market fluctuations, how to choose the right trading varieties] In terms of investment choices in the futures market, Hu Wensheng tends to choose varieties with strong trend for investment and decentralize allocation to protect the capital curve. He suggested that when selecting trading varieties in different periods, decisions should be made based on fundamental changes and market trends. [Futures market risk management, stop-loss and profit-taking strategies] In terms of risk management, Hu Wensheng proposed his own method. When a loss occurs, he will decide whether to reduce or close his position based on changes in fundamentals. For profit orders, he recommends holding them for a long time and determining the timing of taking profit based on supply and demand fundamentals. [Future Outlook, Fund Management and Investment Planning] Looking to the future, Hu Wensheng believes that as the scale of fund management increases, it is necessary to reduce expected returns and adjust total positions and single variety positions. He emphasized that the controlled retreat and steady growth of the funding curve are healthy manifestations, and hinted that subjective transactions have greater potential in terms of capital capacity and management. [Investment reminder, the futures market is not the only option] Hu Wensheng reminded investors that futures are just a tool, not the purpose of life. He advocated that investors should comprehensively develop technology, remain cautious in the futures market, and exit the market at an appropriate time to find new investment opportunities or directions.
