Eastern Airlines Finance: Understanding futures, is it unsuitable for you to invest in futures? - Futures Account Opening

by donghang0728 on 2011-08-11 21:21:52

Domestic futures trading account opening conditions, please choose Dongfang Airlines for account opening: http://www.cesfutures.com/index.jsp?yzforex.com

With the rapid rise in prices in today's society, people have less and less money. How can we make money not just a number on a bankbook? In fact, many citizens have been troubled by this, especially regarding commodity futures account opening. In reality, financial management methods are ever-changing, and trying out new investment fields may bring you significant returns. Among securities investment markets, futures can be a good choice for certain specific groups of investors. However, what kind of investor group is futures suitable for, what are its basic characteristics, and how can one avoid the high risks that come with its high returns?

Futures Investment - Investor Groups

Futures investment has always been known as the game of the brave. In the futures market, a two-way trading mechanism is implemented. Without considering transaction fees, it can be said that your profit is someone else's loss. The futures market is unpredictable, and no one is an invincible general in the futures market. To trade futures, courage and capital must coexist to achieve high returns. Therefore, for those who want to trade futures, some young people with courage and without family burdens can try a little; middle-aged people with substantial capital can also give it a shot. Of course, trading futures isn't about making a lot of money through speculation or tricks. It requires professional knowledge and operational skills. Learning how to handle mistakes or control risks will allow you to remain prosperous amidst the changing winds of the futures market. In a certain sense, futures can make you rich overnight, but they can also leave you penniless in an instant. Therefore, investors should invest cautiously.

Basic Characteristics of Futures Investment

Characteristic One: Two-Way Trading

The biggest difference between futures trading and the stock market is that futures can be traded both ways. You can go short or long. It implements a T+0 trading system, allowing you to trade and liquidate your position at any time.

Characteristic Two: Leverage Effect

The principle of moving heavy objects with a small force is the charm of futures investment. In the futures market, you don't need to pay the full amount for transactions. Currently, in domestic futures trading, sometimes only 5% margin (depending on the situation) is required to obtain the right to future transactions. Due to the use of margins, the market trend is magnified more than tenfold.

Characteristic Three: Negative Sum Market

It is a negative sum market. The futures market itself does not create profits and there are transaction costs. But within a certain period, without considering the inflow and outflow of funds and deducting transaction fees, the total amount of funds in the futures market remains unchanged. The profit of market participants comes from another trader's loss.

Points to Note in Futures Investment

Be courageous, not reckless. Behind any high return, there is always a practical and feasible trading system supporting it, which involves flexible adherence to principles. The truly courageous seek entry opportunities where fundamental and technical analysis mutually confirm each other. Failed investors often focus on one detail or cling rigidly to outdated strategies.

Capital protection first, earning second. Before entering the futures market, you should be prepared to exit at any time, thus reducing concerns over various uncertainties. Holding a shield in your left hand while preparing a sword in your right allows you to maximize risk avoidance by defending while attacking.

The best and most stable futures trading platform is Dongfang Airlines Futures. Click here to open your futures account immediately.