Practical Skills For Stock Index Futures: You Must Learn T+0 And Turning Point Theory For Speculation

Many friends encountered stock index futures for the first time. Looking at the red and green colors on the market, they actually felt quite unsure.

Especially the first-hand contract corresponds to a large amount of capital change. If the direction is reversed, it will be really uncomfortable.

I myself also gradually came through this stage, paid money as tuition, and also summed up some practical and meaningful experiences.

Today I will tell you about some operational details that I think are particularly critical in actual combat, hoping to help friends who have just stepped into the threshold to experience less twists and turns.

Only when you look at the general direction can you have confidence in your heart

When doing stock index futures, the first thing is not to rush to place an order, but to see the general direction clearly.

It is not such a direction. It does not mean to go long just because there is a rise this morning, nor does it mean to go short when there is a downward trend in the afternoon. Instead, we must consider the overall daily trend and the overall weekly trend together.

For another example, the CSI 300 Index is running above the key support level, and the moving average system shows a bullish sorting trend. In this way, the general direction is likely to be upward.

At this time, the operating idea should be mainly to go long on dips, rather than always thinking about reaching the top.

On the other hand, if the general trend is downward, then each rebound may be a better opportunity to sell short.

If the general direction is determined, it is like having a navigation mark in the vast sea. This will make you feel more at ease and will not cause chaos due to slight fluctuations in the market.

Distinguish between speculation and hedging, the playing methods are very different

Before you start the actual battle, you must first think clearly about what you are using the money for.

Is it the purpose of large funds to hedge the risks of spot stocks in their hands, or is it just to gain price difference income?

The operating logic of the two is completely different.

For most friends who participate in day trading, it is a typical short term speculation .

This kind of play has relatively high technical requirements and cannot be covered for a long time like stock trading.

Even if it is a case of short-term speculation, it must be done according to the rules that should be followed in the short-term. You must enter as soon as possible, exit as soon as possible, and strictly set proper profit and stop losses.

However, hedging is more often used by large institutions to lock in profits or avoid risks. For these large institutions, their positions may be held for longer periods of time and their strategies are more complex.

For ordinary people to participate, they must first position themselves as that type of speculator, and their goal is to pursue the efficiency of capital utilization.

Pay close attention to the minute level, and be proficient in T+0

Stock index futures are T+0 transactions, which gives us a lot of flexibility.

However, to use this advantage properly, you must master some basic technical analysis, for example, such as turning point theory and cycle theory.

I pay special attention to the 1-minute K-line chart every day, and also pay special attention to the 3-minute K-line chart, and also pay great attention to the 5-minute K-line chart. These three K-line charts can help you find the high point of the day, and can also help you find the second high point, and can also help you find the low point, and can also help you find the second low point.

For example, if the price reaches new highs one after another on the 3-minute chart, but the MACD indicator fails to keep up and shows signs of top divergence, then it is most likely a short-term turning point.

In addition, the daily upper and lower tracks are also important and can be determined by drawing trend lines.

The level of T plus zero directly determines your income. A change in one point is three hundred yuan. If the direction is correct, you can go back and forth several times a day, and the income is quite considerable.

But if T+0 is not done well and stop loss is frequently swept, the loss will be quite fast.

Keep enough margin to avoid the long shadow trap

This is very critical, and it is also where many novices easily suffer.

You must leave enough margin in your account, and never operate with a full position.

There is a very common technique in stock index futures. This technique is to pull out a significantly long lower shadow line, or pull out a significantly long upper shadow line, so as to knock off the stop loss of the opposite market, and then the price returns to the original direction.

If your position is in a heavy position but the margin is not sufficient, it is possible that the price has not reached the stop loss level you set, but it is forced to close the position due to a sudden glitch in the market. That feeling is really extremely depressing.

In stock index futures, there are technical support and pressure levels, which have certain reference value. However, do not take them too rigidly. After all, the game between big funds may break through these positions instantly at any time.

Keeping enough margin is equivalent to leaving yourself a way out to withstand some unexpected fluctuations.

Just wait and see if it fluctuates within a narrow range, don’t force trades

It is not possible that there will always be a market trend on the market, and many times it will fall into a state of narrow oscillation, with the price swinging back and forth within a range of more than a dozen points for more than ten minutes or even half an hour.

At this time, my approach is to decisively close the position and wait and see, or not open a position at all.

Because the direction of this trend is unclear, and once a direction is chosen, it often breaks through quickly.

If you operate back and forth in the volatile range, not only will you not make money, but you will also easily consume handling fees.

Once the market breaks through, no matter whether the direction is up or down, the speed and strength are likely to appear quickly. If you go in the opposite direction, you may not have time to set the stop loss at all, and you will suffer huge losses in an instant.

Then, when you are in a situation where you cannot see clearly, you must control your hands and wait for the direction to be clear before entering the field. This habit can help you avoid many unnecessary losses.

The principle is to close the position on the same day, and the method is to stop the loss quickly and ruthlessly.

As far as short-term speculation is concerned, I have made a rule for myself, that is, in principle, positions must be closed on the same day and overnight positions cannot be left.

Although there are mid-line opportunities, this operation requires a very high level and an accurate grasp of the general trend. It does not fall within the scope of short-term speculation we usually discuss.

Performing position closing operations within the day can avoid the impact of overnight fluctuations in the external market and the impact of unexpected news, thereby making risks more controllable.

In terms of technique, you need to be quick, be cautious when opening a position, and wait patiently for the ideal position. However, you must be decisive and decisive when closing a position.

If you realize that your judgment is wrong, or the market does not develop in the expected direction, you must cut the position decisively as soon as possible. You must not be lucky and think that you can recover the losses and achieve a comeback by holding on for a while.

This kind of thinking is very dangerous in the futures market.

After closing the position, if you plan to open a reverse position, you must also clarify the direction of the transaction, because mistakes are not something to be taken lightly.

Observe the linkage effect and find the right vane

A habit must be developed, which is to pay attention to the guiding signs in the two cities that can have a decisive effect on the index.

For example, the performance of certain heavily weighted stocks, or the performance of some leading sectors, often precedes the performance of the index.

Once you notice that these indicators have weakened, but the index is still holding on tenaciously, then this is most likely a risk signal.

On the other hand, if the weather vane stabilizes and rebounds first, the index may also rebound accordingly.

Understanding this linkage effect will be of great help in determining the intraday trend of stock index futures.

After all, the index is constructed from constituent stocks, and the behavior of large amounts of funds in the spot market is often reflected in advance or simultaneously in the futures market.

In the actual operation of stock index futures, what is tested is more of mentality, discipline, and the ability to observe the market in detail.

Identify the general direction, clearly know whether you are speculating or arbitrage, practice the basic skills of T+0, set aside sufficient margin, control the situation in volatile market conditions, insist on closing positions on the same day, and then use some linkage effects to verify your judgment.

If these details are taken care of, in the long run, the probability of profit will naturally be greatly improved.

The market never lacks opportunities, but what it lacks is patience and the ability to wait for opportunities.

I hope these practical tips can give you some inspiration on the road.