Does futures trading make people progress faster than stock trading?

Whenever we talk about itfuturesCompared to stocks, most people will say many differences between the two. For example, different trading rules, trading systems, and trading times. At the same time, many people will give the kindest advice: never do futures, futures risks are too high! Although this advice is full of goodwill, it is also extremely intimidating, to the extent that it has long influenced and prevented groups of people who are interested in learning about futures or participating in futures trading. However, the fact is not what they believe. In the eyes of people who have years of experience in stock and futures trading, futures are not only not as scary as people say, but also have one of the greatest treasures of futures, which is that futures trading makes people progress much faster than stock trading.

So, what progress can futures bring to people?


　　Firstly, futures will give you a deep foundation in analytical theory, thus possessing your own expertise.


In stock trading, almost few people think of identifying and handling noise (small pullbacks during rising or falling processes) during price trends, as well as buying on dips during upward trends and selling on highs during downward trends. For the vast majority of stock traders, at best, all they need to do is listen to comments, read company financial reports, browse the news, and take a lookKLines and indicators to follow the market. In futures trading,Because futures is an extremely special industry, and the market price is unpredictable, it is often necessary to make an instant choice. Under such circumstances, it is absolutely impossible to make profits without your own ideas and experience.To form one's own opinions, it is necessary to pay attention to various analysis systems and understand the connotation of each analysis method, especially the mastery of trends, resistance lines, and support lines. The mastery of these skills can only be based on learning and understanding all basic analysis, technical analysis, and psychoanalytic theories.In this process of learning and perception, you naturally have a solid theoretical foundation in analysis and possess knowledge and skills. In this way, you are likely to be at the forefront of China or the world in the field of trading, and thus live with self-esteem, self-love, and confidence.


Secondly, futures will give you a correct understanding of risk.


Whether it's stock or futures trading, their essence is to make judgments about the future and make current buying and selling decisions. Since making a decision about uncertain facts that have not yet occurred in the future, risk management becomes particularly important. Because in all judgments, no one can be 100% correct, and every time you make a judgment, there is a possibility of errors. In order to reduce and avoid this risk, we need to acknowledge and manage trading risks, that is, use exploratory psychological small funds to intervene, and at the same time prepare exit strategies before each transaction begins.


However, due to the full trading system of stocks, as long as the purchased company stock is not delisted, the trader's funds can never be lost to zero, and the trader will not owe money to the securities company in their account due to this transaction. As a result, this seemingly safe situation makes too many traders neither know how to use exploratory small funds to intervene in the stock trading process based on their feelings and advice from others, Not knowing how to use stop loss to protect this trading fund. So much so that after each wave of the market, too many people are trapped in it, not only losing their capital, but also missing out on other investment opportunities, even without knowing the reasons, and only blaming others. In futures trading, you will never be allowed to let yourself go. If you don't know how to allocate trading funds and stop losses, the market will sweep you out in a short period of time or even a few days. On the surface, this may seem cruel, but it is precisely this harsh lesson that ultimately gave you a risk mindset, allowing you to survive in the market for a longer time and achieve ultimate success.



　Thirdly, futures will help you understand the truth and overcome difficulties as soon as possible.


Whether it's stocks or futures, many traders initially started trading with a mentality of becoming wealthy and making stable profits, especially stock traders. Because their intervention is at the peak or even peak of a bull market, in their view, stocks are a place where people can make money, and others can make money, so I can also make money. However, they do not know that the greatest charm of stocks is that they can give people a wealth on paper, but whether this wealth on paper can be turned into real wealth depends on your trading knowledge and experience. For a person who lacks knowledge, experience, and the quality of success, obtaining this wealth is undoubtedly a foolish dream. Sadly, many stock traders, unable to recognize this, naturally do not work hard to learn and hone. They can only rely on infinite hope in the next wave of the market and repeat this story year after year. The charm of futures lies in its small, broad, and bidirectional trading. Due to frequent fluctuations in futures prices and margin trading, it is not acceptable for you to keep trading positions indefinitely. In this way, constantly facing decision-making and real trading results, traders will quickly think about the truth behind their success in this industry, and will also seriously consider whether they can achieve it and where to go in the future, So as to overcome the trading dilemma.


Fourthly, futures will allow you to act according to rules and plans.


　　To identify trading opportunities, prevent market chasing, and achieve successful trading, traders should have their own trading principles and plans before each transaction.However, due to the rare occurrence of market trends in the stock market, which are full of rumors and misleading information, few people think of formulating trading rules and plans in the few or even one trading session each year, and there are no more opportunities to apply and improve them. However, in futures, there are many trading opportunities, so without principles and plans, the market quickly makes you feel powerless and at a loss. At this point, people must consciously learn the correct trading rules and how to develop trading plans. Of course, this process is not overnight, but as long as there is a beginning, it will continue to progress and improve trading performance.


　　Fifth, futures trading can help you understand how having a healthy psychological quality is important for trading.


There are too many things in our lives that distract us, and too many details that we overlook. When you constantly face the beginning and end of the market, constantly need to analyze and make decisions, and constantly accept market baptism, you will truly understand why Rivermore said: speculation is the most completely magical game in the world. However, this game cannot be played by foolish people, those who are too lazy to use their brains, those with unsound minds, and adventurers who attempt to become wealthy overnight. If these people get involved recklessly, they will ultimately end up penniless. And of course, futures, rather than stocks, are the ones that can make you constantly and deeply reflect.


　　Sixth, futures will keep you humble and constantly learn.


I remember in the book that seniors always emphasized that learning and improving one's personality is a lifelong task. The meaning of this statement is naturally difficult for stock traders who only want to listen to others' opinions and are not eager to make progress. Because they believe that trading is at best value investing and trading according to the trend. Just look at the reports and learn from Buffett's book, there is nothing to delve into. However, when you personally study futures day after day, you will find that the trading process is meticulous and comprehensive, and the market is constantly changing. Even though human nature remains the same, people's expression and response methods are up-to-date. Additionally, people are full of inertia, and a slight indulgence and expansion can bring unparalleled harm to trading.


All of this requires traders to constantly pay attention and understand, requiring them to always persist in learning. In addition, as you delve into the market and trading year after year and day after day, you will feel that every sentence of the senior in the book is so philosophical and instructive. For example, everything has clues to explain, and to find those clues, one must look at all visible things, including all details; The purpose of analysis is to understand the evolution of behavior, without attempting to find patterns or templates from past data to explain current market behavior; Non rationality is an important part of the market, and seeing this level, profit opportunities will significantly increase; The truly stable way to make profits is usually through self-developed trading logic and strategies.More importantly, you will find that the principles of trading and life philosophy are so interconnected.For example, Rivermore repeatedly emphasized how important the time factor is in analyzing trend reversals. Think about which important reversal did not gradually form over time,such as03It is difficult to discern from which day the trend of the London copper market began to change. And the real changes in our lives are not achieved through gradual changes.


A very famous inspirational master from abroad once said:If you hope for intellectual growth, please go to a library, bookstore, or school; If you want to be healthier, please go to the gym, ride a bike, or exercise more; If you want your soul to grow, please go to church or find a quiet place to meditate or pray more; If you hope to increase your wealth, please go to a place where everyone wants to become rich and meet a group of friends who also want to become rich; If you want to expand your world, please go to places you have never been before and do things you never dared to do before.Although the author is not a master10What I want to say about my years of learning and trading experience in stocks and futures is:If you want to make progress in trading, morality, and personality, then please go and learn about futures. In self blame, self-improvement, confidence, self education, and self-awareness, you will truly improve your own pace of progress.