Why is it so important to prevent pinning?
1. Set a stop-loss defense line
The first strategy is to set a clear stop-loss point. This can limit losses in time when the market changes unfavorably and prevent losses from expanding indefinitely. The setting of stop-loss points needs to be flexibly adjusted according to personal risk tolerance and market volatility.
2. Beware of the trap of low-multiple contracts
Although low-multiple contracts seem safe in most cases, dealers often tamper with high-multiple leverage, and low-multiple contracts become a trap of boiling frogs in warm water. Once the market fluctuates violently, low-multiple contracts may also suffer heavy losses. Therefore, it is also necessary to be vigilant when dealing with low-multiple contracts and avoid blindly following the trend.
3. Build multi-level position management
Whether you choose full position or position-by-position trading, you should establish multi-level position management. By dispersing positions, you can reduce the risk exposure of a single contract and improve the overall risk resistance. It is recommended to maintain at least 2-3 layers of position configuration to cope with market uncertainties.
4. Make good use of stop-loss and stop-profit tools
Using stop-loss and stop-profit tools to open positions, you can set the trigger price and transaction price to effectively avoid pinning risks. For example, when the market is in a pin market, the trigger price can be set at a safer price to avoid direct transactions at extreme prices. At the same time, a certain distance should be maintained between the transaction price and the trigger price to cope with market fluctuations. In addition, the trigger price and the transaction price should avoid being set in a chip-intensive area to prevent accidental opening of positions during the process of pulling the pin up and down.
5. Set the stop-profit and stop-loss of high-multiple contracts
When opening a position, you can set a 5%-10% position stop-profit and stop-loss high-multiple contract as part of risk management. The trigger price and transaction price of this contract should be set at a relatively safe price to cope with extreme market conditions. At the same time, the transaction price should not be too close to the trigger price to prevent it from being easily triggered during fluctuations.
