Core Insights - The article emphasizes the importance of timing and price in stock index futures trading, comparing it to playing a musical instrument where both basic and advanced skills are necessary for success Group 1: Trading Techniques - Timing is crucial for stock index futures trading, with recommendations to avoid high volatility periods such as the market opening and to prepare for potential movements during the closing period [1] - Market orders are suitable for quick transactions during sudden market changes, while limit orders are recommended for specific target prices to avoid impulsive decisions [1] - The distinction between main and secondary contracts is highlighted, with a preference for main contracts due to their higher liquidity and lower transaction costs [1][2] Group 2: Day Trading Strategies - Day trading is suitable for investors sensitive to short-term fluctuations, with strategies to capitalize on small price movements [4] - Strict stop-loss measures are advised, limiting losses to no more than 3% of the margin and restricting daily trades to 3-5 to prevent overtrading [5] Group 3: Overnight Holding Strategies - Overnight positions carry risks from external news, suitable for clear trends or hedging against overnight risks [6] - A recommendation to reserve at least 50% of total funds as margin for overnight positions to manage unexpected volatility [6] Group 4: Simulation Trading - Simulation trading serves as a practice ground for beginners, allowing them to familiarize themselves with the trading process and test strategies [7] - A duration of 1-2 months of simulation trading is suggested before transitioning to real trading, ensuring consistent profitability [7] Group 5: Common Mistakes to Avoid - New traders often make three common mistakes: not setting stop-losses, over-leveraging, and trading against market trends [8] - A structured trading plan is recommended to mitigate these errors, akin to a student reviewing notes before an exam [8] Group 6: Capital Management Principles - The core principle of capital management is the "three-thirds rule," dividing total capital into three parts for trading, reserves, and emergencies [9] - Adjustments to positions should be made based on performance, with a cap on increasing positions after profits and a strategy to pause trading after consecutive losses [9]