In the futures market, many novice investors feel confused about various aspects of trading operations. Terms like opening a position, closing a position, transferring a position, and open interest may seem complicated, but mastering them is crucial for successful trading. This article will approach from a practical perspective to help you understand these core concepts and learn how to make correct trading decisions under different market conditions.
When should you enter and exit the market? Practical trading timing
Before explaining each trading concept, first understand when to enter (open a position) and exit (close a position).
Three major criteria for timing entry
Grasping the rhythm of the overall market is fundamental. First, confirm whether the weighted index is operating above the moving average system (monthly, quarterly) or in an upward structure (lower lows and higher highs). When the Taiwan stock market is in a bullish trend, the probability of profit from individual stock positions is relatively higher; conversely, in a bearish market, you should try to control the size of new positions.
The fundamentals of individual stocks must be solid.