But when countless people enter this market with the idea of getting rich overnight, it is difficult for them to consider the eternal theme of market risk. They are like soldiers with their bare hands. They went to the battlefield without any risk warning and investor education, and the result can be imagined. For this reason, veterans of the futures market usually call new entrants "meat". Only when fresh "meat" enters the market can veterans make money.
Five years ago, I entered the gold futures market. I am honored to have almost entered the ranks of "meat". Veterans often say that it is terrible for beginners to start making money when they first enter the market, because it will make them get carried away, and once you get carried away, bad luck will follow. That's what I am! In 2006, it was the end of the first bull market of commodities. After I entered the market, I started to make more rubber and earned 50% in just one week. Such a high rate of return did not alert me, but made me more greedy. So the position began to increase, and I have already planned how to spend it after doubling my assets. ...
At the end of May 2006, the price of Hujiao peaked and then began to plummet. Faced with this situation, I lacked basic knowledge of risk control. I didn't choose to make a profit and close my position, but started to increase my position against the market. So the profits gradually retreated, and then the principal lost. By the time I reduced my position, I had lost more than half of my principal.
Only then did I really realize how ignorant I was in the face of this market. The futures company that just started to open an account did not explain the huge risks I was about to face before I entered the market. I deeply feel that this futures company is unreliable. After a period of silence, I closed my account and found a large futures company with a good reputation in China to get engaged again.
The newly opened futures company is relatively responsible. When opening an account, the system will prompt the risk. At the same time, it also provides a lot of futures information for reference. At the same time, it will also provide learning advice to help investors grow.
It was also at this time that I began to systematically learn about futures trading. At that time, China Financial Futures Exchange had just been established, and made many useful attempts in investor education, especially recommending many books that were very helpful to investors. One of the books, "One Dream in Ten Years-Confessions of a Futures Trader", is particularly helpful to me. After studying this book carefully, I got a deeper understanding of the risks in the futures market and began to form my own investment philosophy.
The follow-up process was not smooth sailing. Even after a lot of study and knowledge reserve, when you enter the market and start trading, the red, green and green K-line will still affect your mentality, or you will involuntarily chase up and down and trade at will. Of course, in this process, the account funds are shrinking.
Until 2009, after a long period of study and reserve, I seemed to find a stable profit model, and the capital curve began to climb steadily.
Investing in the futures market is a long process. Some people joke that if an investor can stay in this market for more than four or five years without being eliminated, then he has a chance to start making profits. In this process, investor education is particularly important. Looking back on the five-year investment process, I am especially grateful to the second futures company that opened an account. It is because of their patient and meticulous counseling that I really began to understand this market. For investors who have just entered the market, investor education is indeed an indispensable part. From this perspective, investor education can be described as a great contribution.