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Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management

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In the two-way trading world of forex investment, successful forex traders generally agree that short-term trading is undesirable, and frequent, repetitive short-term trades should be avoided. This view isn't groundless; it's based on a deep understanding of the volatility and trading risks of the forex market.

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Price fluctuations in the forex market are highly uncertain and complex. In the short term, exchange rate fluctuations are often influenced by a variety of factors, including the release of macroeconomic data, geopolitical events, shifts in market sentiment, and short-term signals from technical analysis indicators. These intertwined factors make short-term price trends difficult to predict. Short-term traders attempt to capture these short-term fluctuations by rapidly buying and selling, but are often susceptible to market noise and random fluctuations. This trading approach not only requires extremely high market sensitivity and quick decision-making, but also carries significant risks. If market trends deviate from expectations, traders can suffer significant losses in a short period of time.
Furthermore, frequent trading incurs additional transaction costs. Each trade incurs fees, such as commissions and spreads. These costs can quickly accumulate with frequent trading, eroding investment returns. More importantly, frequent trading can lead investors to make irrational decisions driven by emotional fluctuations. When the market experiences short-term fluctuations, traders may blindly follow the herd or prematurely cut losses out of greed or fear, thus missing out on long-term investment opportunities.
Therefore, successful forex traders tend to adopt a long-term investment strategy. They develop a robust trading plan based on in-depth analysis of market trends and fundamental factors. This strategy not only helps investors better navigate market uncertainty but also reduces transaction costs and emotional interference. A long-term investment strategy emphasizes understanding market trends and choosing appropriate entry and exit points to achieve more stable returns. This strategy is more aligned with the nature of the forex market and is more adaptable to its long-term fluctuations.
In short, successful forex investing does not rely on frequent short-term trading; instead, it requires a deep understanding of the market and a robust trading strategy. By avoiding repetitive short-term trades, investors can better manage risk and achieve long-term, stable returns.

Forex traders employing short-term, heavy-weight trading strategies must strictly limit their position increases to "floating profits" and are strictly prohibited from increasing positions during "floating losses." Traders employing long-term, light-weight trading strategies, on the other hand, have greater flexibility in increasing their positions. They can increase their positions when their positions experience floating profits, or when their positions experience floating losses and the market trend aligns with the market trend.

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In the two-way trading world of forex investment, different trading strategies correspond to distinct logics for adding to positions. The most significant difference lies in the two mainstream strategies of short-term heavy trading and long-term light trading. For forex traders employing a short-term heavy trading strategy, adding to positions must be strictly limited to "floating profits" and is strictly prohibited during "floating losses." On the other hand, traders employing a long-term light trading strategy have greater flexibility in adding to positions. They can increase positions when positions experience floating profits or when positions experience floating losses and are in line with the trend. The difference between these two types of adding to positions is not arbitrary but is determined by the risk characteristics, timeframes, and trend adaptability of different strategies. This directly impacts account risk management and the realization of profit potential.
In two-way foreign exchange trading, the core contradiction of short-term, heavy-weight trading strategies lies in the interplay of time constraints and limited margin for error. Furthermore, the inherent randomness, chaos, and unpredictability of short-term trends make it difficult for traders to accurately predict short-term price movements. This fundamentally necessitates extreme caution in the rules for increasing positions. Short-term trading typically lasts only tens of minutes to several hours, and price fluctuations within a short period are significantly affected by random factors such as instantaneous capital flows and breaking news. Trends lack continuity, and if a misjudgment of direction is made, traders have very limited time to adjust, significantly compressing their margin for error. Against this backdrop, traders employing a short-term, heavy-weight strategy choose to "increase positions only when there is a floating profit." Essentially, this strategy uses "floating profits" as a signal to validate their earlier directional judgments. The presence of floating profits indicates that the current position is aligned with the short-term market trend. Adding positions at this time can expand profits based on this correct judgment, while also leveraging existing floating profits to mitigate the risks associated with short-term fluctuations and avoid the uncertainties associated with sudden reversals in direction due to short trading periods. Conversely, adding to a short-term, heavily weighted position when it experiences a floating loss directly amplifies risk exposure. Due to the random nature of short-term trends, floating losses often indicate a potential bias in prior market direction. Adding to a position at this point is like "increasing your bet in the wrong direction." If the market suddenly reverses, losses can multiply exponentially with the increased position size over a short period of time, easily triggering the pre-set stop-loss, leading to unnecessary account losses. If a stop-loss is not set to avoid it, holding a heavily weighted position can quickly accumulate significant losses when the trend reverses, potentially reaching the account's margin call threshold and exposing the trader to the risk of losing all their principal. Therefore, the "prohibition on adding to a position when experiencing a floating loss" rule within a short-term, heavily weighted strategy is essentially a reflection of the high-risk nature of short-term trading and serves as a key defense against extreme losses. In stark contrast to short-term, heavily weighted strategies, forex traders employing long-term, light-weight trading strategies base their adding to their positions on the principle of trend stability and manageable risk. The core of a long-term, light-weight strategy is to capitalize on medium- to long-term trends for returns. Holding periods typically span months or even years. During this period, price movements are driven more by long-term deterministic factors such as macroeconomic data and monetary policy guidance. This makes trends more sustainable and predictable, significantly reducing the impact of short-term fluctuations on the overall trend and significantly expanding the account's margin for error. This characteristic allows traders, after establishing a large number of light-weight positions along the trend, greater flexibility in adding to their positions. Adding to positions when a position experiences floating profits aligns with the trend's continuation, leveraging proven trends to further expand profits and allow profits to grow as the trend continues. Adding to positions when a position experiences floating losses, on the other hand, assumes the trend remains unchanged and is subject to short-term pullbacks. Pullbacks within a long-term trend are normal, and floating losses from light-weight positions are manageable. Adding to positions can reduce holding costs when the trend returns, increasing the flexibility of subsequent profits.
This flexible approach to increasing positions is also crucial for traders' mindset management. On the one hand, increasing positions during periods of floating profits avoids blindly expanding positions due to excessive greed, maintaining a manageable risk profile with a light position and preventing profit-taking due to sudden trend pullbacks. On the other hand, increasing positions during periods of floating losses requires a firm understanding of the core trend logic and the ability to withstand the psychological pressure of short-term drawdowns. This prevents traders from missing out on profitable opportunities after a trend reversal due to a fear of stop-loss orders, ultimately achieving the core goal of "letting profits run wild." It's important to note that the key prerequisite for increasing positions during floating losses within a long-term light position strategy is to "hold onto floating losses," not "ignore them." "Hold onto" here doesn't mean blindly holding onto positions, but rather relies on in-depth analysis of the trend, confirming that floating losses are short-term pullbacks rather than trend reversals, and that the overall position remains within the risk tolerance range after increasing positions. Under these conditions, increasing positions during periods of floating losses not only does not amplify risk, but can actually optimize the position structure, creating greater room for profit growth when the trend extends. This is the core advantage of a long-term light position strategy over a short-term heavy position strategy.

In two-way foreign exchange trading, small-capital short-term traders often face a difficult dilemma.

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On the one hand, while choosing a light position for long-term investment offers relatively low risk, the investment cycle is too long and difficult to sustain. Even if they manage to persevere and achieve stable profits, due to limited capital, such profits are unlikely to significantly improve their living conditions and therefore lack practical significance. On the other hand, while choosing a heavy position for short-term trading may yield substantial short-term gains, this trading method is extremely risky and difficult to sustain. A significant market reversal could result in significant losses, even depleting their principal. In extreme cases, they could even face a margin call, ultimately forcing them to exit the foreign exchange market.
Small-capital short-term traders make up the vast majority of the foreign exchange market. Due to limited capital, they often seek to quickly make large profits through heavy, short-term trading. However, short-term trends are highly random, chaotic, and irregular, making heavy short-term trading a risky endeavor. While traders typically set stop-loss orders to manage risk, they are often triggered. Without stop-loss orders, while holding onto a position might theoretically yield a profit, a significant market reversal could result in significant losses, potentially wiping out any previous small gains and potentially depleting the principal, leading to a margin call. In extreme cases, investors could be forced to permanently exit the forex market due to capital depletion.
By contrast, while light long-term investment is a more stable strategy, it presents a challenge for short-term traders with small capital to maintain. Even if they manage to achieve consistent profits, the relatively small amount of capital makes such gains unlikely to have a substantial impact on their livelihoods. For example, even a 10% annual return on a $10,000 investment would only yield $1,000—not enough to cover basic living expenses for a single person, let alone support a family. While light long-term investing is considered an excellent strategy by professional investors like funds, investment banks, and institutions, it's inadequate for small-capital short-term traders to meet their basic living needs.
Thus, small-capital short-term traders face a dilemma: light long-term investing takes too long and offers limited returns, making it unlikely to improve their current living conditions; while heavy short-term trading carries too high a risk and is difficult to sustain, but occasional success could significantly improve their living conditions in the short term. This dilemma leads many small-capital short-term traders to try heavy gambling-style trading. Although the probability of success is extremely low, if successful, it can at least alleviate their financial pressures in the short term.

In the two-way trading world of forex investment, the ability to effectively handle and manage floating losses is one of the key factors that distinguishes average traders from successful ones. All successful forex traders who have maintained a long-term presence in the market are masters of managing floating losses.

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Price fluctuations in the foreign exchange market are inherently uncertain. Even trading strategies based on rigorous analysis are inevitably subject to short-term adverse fluctuations during execution, resulting in floating losses. The key skill of successful traders isn't completely avoiding floating losses, but rather the ability to rationally understand the nature of floating losses. Through scientific position management, appropriate stop-loss settings, and a firm grasp of trends, they can keep floating losses within a manageable range and even leverage the continued development of trends to convert floating losses into actual profits. This ability is crucial for achieving stable profits in complex market environments.
In two-way foreign exchange trading, novice forex traders often misunderstand position returns: they generally believe that the ideal trading state is for position returns to remain positive. Once floating losses occur (i.e., returns turn negative), they must immediately "cut losses" and retain only positions with positive returns, allowing these profits to continue to grow. This perception stems from an excessive pursuit of risk aversion and a distorted understanding of the nature of trading. New traders often equate short-term floating losses with permanent losses, fearing that losses will erode their principal. Consequently, they tend to quickly stop losses to avoid negative balances. However, real forex trading is far more complex. This "zero tolerance for floating losses" approach not only fails to adapt to normal market fluctuations but can also lead to premature exits before the trend fully develops, missing out on subsequent profit opportunities. Frequent stop-loss orders can even create a vicious cycle of accumulated small losses.
In two-way forex trading, real-world scenarios often involve the regularity of floating losses: newly established positions are likely to experience a period of negative balances before a stable profit trend is established. This is because forex market trends are not linear but rather fluctuate gradually. Even if traders accurately identify and follow the broader trend and direction, when the trend enters a period of pullback, newly entered positions will experience a series of floating losses due to short-term price fluctuations. Faced with this situation, established and successful traders approach it very differently from novices. They neither fear normal trend pullbacks nor fret over short-term declines in the yield curve, nor do they panic over a series of negative balance sheets. In their view, as long as the core logic of the trend remains intact, these periodic floating losses and drawdowns are "healthy drawdowns": Trend pullbacks are a normal process for the market to digest short-term profits and accumulate subsequent momentum. A retracement in the yield curve is the inevitable reflection of a trend pullback in the account's performance. The appearance of negative balance sheets is essentially a transitional state as new positions adapt to market fluctuations and wait for the trend to continue. This deep understanding of market dynamics enables them to remain calm during trend pullbacks, avoiding irrational decisions driven by emotion and laying the foundation for seizing profitable opportunities presented by subsequent trend extensions.
Furthermore, established and successful traders' lack of fear of floating losses and trend drawdowns stems not from blind confidence but rather from absolute trust in their trading system and precise risk management. Before establishing a new position, they will use historical market backtesting and real-time market analysis to predict the possible retracement amplitude and duration of the trend in advance, and set a reasonable position size accordingly. They usually do not over-position in pursuit of short-term high returns, but rather use light positions or batch positions to reduce the impact of a single trend retracement on the account at the same time, they set dynamic stop-loss orders for their positions. These stops aren't based on the absolute value of short-term floating losses, but rather on key support or resistance levels. This ensures that stop-loss orders are only executed when the core trend logic is broken, avoiding the accidental loss of high-quality positions during normal pullbacks. It's this systematic approach of "forecasting, rational position control, and dynamic stop-loss orders" that allows them to maintain rationality in the face of negative book values ​​and trend pullbacks. Ultimately, with the continued extension of the trend, they can convert previous floating losses into substantial profits. This is the core logic behind their long-term success in the forex market.

In the two-way trading world of forex investment, a key turning point in achieving stable profits and even achieving success lies in breaking away from the short-sighted mindset of "making a quick buck and running." Once this impulsive mindset is broken, traders can gradually enter the ranks of profitability and move closer to success.

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The essence of profit in forex trading lies not in frequently capturing small, short-term price discrepancies, but rather in grasping medium- and long-term trends, allowing profits to grow continuously as they progress. A "profit-and-run" mindset causes traders to hastily close positions before the trend has fully developed, missing out on opportunities to maximize profits. Even if they correctly predict the market direction repeatedly, they ultimately struggle to accumulate substantial returns. Changing this mindset allows traders to more rationally view the relationship between profit and trends, learning to let profits run while controlling risk. This significantly improves the stability and scale of profits.
In two-way forex trading, the vast majority of small retail traders have limited capital. This "lack of capital" often fosters a deep-seated mindset—a "shortage mindset." This mindset is essentially a "poverty mindset," stemming not simply from a current cash shortage but rather from an overly cautious and fearful approach to returns shaped by long-term poverty. This mindset has become deeply ingrained in traders, almost ingrained in their very being. For them, the pain of "gaining and then losing" is far more intense than "losing something in one direction," and the psychological impact of the former can be ten times greater. Because in poverty, every bit of profit is considered a hard-earned "lifeline." Once gained and then lost, it not only means financial loss but also exacerbates anxiety and self-denial about the future. Driven by this mentality, even if they accurately judge and follow the market's general direction, they will rush to close their positions and lock in profits after a small profit, fearing that a subsequent market reversal will cause them to lose their gains. Even if the overall trend continues to extend, showing a sustained upward or downward trend, they cannot seize opportunities for further profit growth because the fear of losing has already dominated their trading decisions, causing them to miss out on the core profit opportunities presented by the trend.
A further analysis of the trading behavior of small retail investors and market realities reveals that the vast majority lack the patience and resources for long-term holding positions. They generally focus on short-term trading. However, a harsh truth in the world of forex investment and trading is that short-term trading can never achieve sustained profits, let alone help traders achieve financial freedom or even wealth freedom. Short-term trading relies on predicting short-term market fluctuations. However, short-term price movements in the foreign exchange market are significantly impacted by random factors, such as instantaneous capital flows and breaking news. These factors make it difficult to maintain a high and stable winning rate in short-term trading. Even if profits are occasionally achieved, they are easily lost in subsequent frequent trading due to factors such as transaction fees and misjudgment, or even lead to losses. More importantly, the profit margin in short-term trading is extremely limited. Even if every trade is profitable, the margin of profit per transaction is insufficient to support substantial growth in the size of the fund, preventing the trader from breaking the cycle of "being content with small profits." Financial freedom and wealth freedom require the accumulation of long-term, stable, and sizable returns, and the profit model of short-term trading is completely inadequate to meet this requirement. For small-capital retail investors, if they continue to fall into the trap of short-term trading, even if they devote considerable time and energy, they will find it difficult to break free from the dilemma of "frequent trading but little profit." This truth, while harsh, is a reality that traders must face.

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13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

z.x.n@139.com

Mr. Z-X-N

China · Guangzhou

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