This issue is crucial, yet it is overlooked by the vast majority because futures trading is an industry with a low entry barrier. Adults with capital can simply open a futures account and start trading. However, starting easily often leads to losses just as easily, and in the end, they may not even understand how they lost.

In reality, to excel in futures trading, a lot of preparation is necessary, such as professional trading knowledge, sufficient understanding, and trading psychology. When entering the market, one can remain calm and in control, mastering the rhythm.

Thus, today's article is written for those who are just starting or have been in a continuous state of loss. It will guide them on how to learn, what to learn, and what the steps are. This way, everyone will have a clear direction and a sense of certainty on their learning journey.

Step 1: Learn the basic knowledge of futures.

While the basic knowledge of futures is not difficult, it is extensive, including the trading rules of the futures market, such as the times for halting and opening the market, the rules for long and short trading, the classification of trading varieties, etc.

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Knowledge of futures contracts, like contract units, product English abbreviations, quotation units, the smallest price fluctuation, the limit of price movement, the margin ratio, etc.

The usage of futures trading software, such as how to place orders, how to set stop-loss and take-profit levels, how to adjust time frames, etc.

All these things are quite simple; one just needs to remember them. However, many people overlook them and start blindly, resulting in trading losses due to a lack of basic knowledge, which is really unjustified.

Step 2: Learn some trading technical knowledge.

Because the futures market is quite flexible, with T+0 transactions and the ability to trade in both long and short directions, technical analysis is very suitable. If you want to do technical analysis, you must learn some related knowledge, such as:1: The most fundamental candlestick theory, as the charts are composed of candlesticks, it is essential to learn about them.

2: Basic concepts of trends, such as Dow Theory, Elliott Wave Theory, and theories of support and resistance, etc.

3: Technical indicators, focusing on learning the basic principles and methods of using these indicators, such as the 8 major rules of moving averages, divergence in MACD, and the support and pressure of Bollinger Bands, etc.

Let me elaborate a bit more on learning indicators: You don't need to learn a vast number of indicators, but it is crucial to delve deeply into a few, understanding their strengths and weaknesses. This will allow you to leverage their advantages and avoid their pitfalls when building your trading system later on, and prevent failure due to an excessive pursuit of a perfect trading system.

Step 3: Construct and test the trading system.

Constructing a trading system requires two parts.

First, the basic framework of the trading system, which includes confirming the direction, selecting entry points, setting stop-loss and take-profit levels, and managing capital.

Second, use the indicators learned above, following their usage methods, and integrate them into the basic framework of the trading system to form a foundational trading system.

After the basic trading system is assembled, backtest it and then optimize and refine it. For example, profit data, trading frequency, and the number of consecutive stop losses can all be tested and improved through backtesting.

The process of refining the trading system is lengthy and energy-consuming, but if you want to achieve a profitable strategy, this step is absolutely indispensable.In the stage of perfecting the trading system, it is also the fastest growing phase for us traders. This is because reviewing the market requires going through decades of various market trends. When the market unfolds linearly before you, you will gain a deeper understanding of the entire financial market landscape. Unlike during regular trading when you might only care about a single or two points, you won't be fragmented, nor will you be overly eager for quick success.

During this process, you can enhance your overall perspective on trading, deeply understand the unpredictability of market trends, the effectiveness of indicators, the long-term profitability cycle of the trading system, and the underlying logic that profits and losses come from the same source. This is extremely important for making profits in trading.

Step 4: Simulated trading—Small amount of live trading—Normal trading.

After establishing and testing a trading system, it is best to start with simulated trading.

Virtually every trading software has a simulated trading feature, where you can put your trading system into a simulated account for a period of testing. One thing to note here is to set the amount to the same as what you would normally trade in live trading. This way, you can directly experience the rhythm of the entire trading process, the effectiveness of your trading system, and test your execution ability on a 1:1 basis.

If, after a period of simulated trading, you can execute your trading system 100% and achieve good results, it will strengthen your confidence in your trading system, which will be very helpful when you actually enter the real battlefield.

After the simulated trading, we can start with a small amount of live trading. The pressure in our trading mainly comes from the changes in profits and losses caused by market fluctuations. If our capital is small, the psychological pressure is also small, which is more conducive to the execution of trading.

I prefer to establish a "psychological account" for testing my own limits. Start with a small amount to test your limits, and once muscle memory is formed, gradually increase your position. After testing for stability and gradually increasing, when you feel uncomfortable with a certain position, step back one level.

The process of making profits is gradual. First, ensure no losses, then move to small profits, and then to moderate profits.

The above points are the experiences I have gone through in my own trading, and I also share these insights with you. In the financial market, slow is fast, so do not be overly eager for quick success.