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In foreign exchange investment trading, whether intraday trading has long-term value is a rather complex issue.
Some long-term foreign exchange investors may engage in intraday trading under specific circumstances, such as when the market shows a clear trend or is at a key turning point, taking this as an opportunity to obtain quick profits. In this case, if the market trend is strong, whether it is at a historical high or low, conducting short-term trading and exiting in a timely manner after making a profit is a relatively wise decision. However, if there is a loss in trading, it can be considered to be included in the category of long-term investment for retention.
Under certain market conditions, intraday trading may be profitable, especially when there are large fluctuations in the market. However, most successful traders tend to prefer medium- and long-term investments and focus on fundamental analysis. For small amounts of capital, under the condition of low cost, intraday trading may be a relatively appropriate choice, especially when the trading time is shorter.
However, intraday trading is not without risk. High leverage, heavy position operations, frequent trading, and trading strategies that rely on intuition are very likely to lead to rapid financial losses. In contrast, using low leverage, conducting reasonable position management, conducting longer-term trading, reducing trading frequency, and adopting strategy-based trading methods are more likely to achieve stable profits.
Individuals' views on intraday trading may change over time and with the accumulation of experience. Some people may initially think that intraday trading has promising prospects, but as they conduct in-depth research on the market, they may change their views. It is crucial that every trader should formulate a trading strategy that suits them according to their own situation and market conditions.
In the field of foreign exchange investment and trading, the performance of professional traders directly affects their wealth status. Exquisite skills can bring substantial returns, while mistakes may lead to setbacks. Some traders may choose to change careers to seek balance and finally move forward in continuous growth.
In the fierce competition of the foreign exchange investment and trading financial market, the fates of foreign exchange investment traders present diversified development paths. On the one hand, traders with excellent trading skills and in-depth market understanding can achieve wealth accumulation and become leaders in the market. They not only master the art and technology of trading but also show maturity and charm beyond ordinary people, and can be regarded as successful models. On the other hand, due to market fluctuations and personal decision-making mistakes, foreign exchange investment traders may face the risk of losses or even bankruptcy. In this case, they may choose to leave the market, look for a new way of life, or repay debts through other channels. In addition, some traders, after experiencing market fluctuations, realize that trading is not a long-term career choice, so they exit this field and turn to pursue achievements in other fields.
Eventually, foreign exchange investment traders may pursue a balanced living state, whether it is to achieve financial freedom through trading or to achieve stability and inner peace in life through other means. In this process, they may experience emotions such as loneliness, solitude, and sadness, but they may also reach the realm of unity of knowledge and action through reflection and growth and live in harmony with their own trading systems. Some foreign exchange investment traders can even transform their trading skills into broader social influence, such as becoming policy makers or leaders and playing a role in a wider field.
In short, the career of a foreign exchange investment trader is a process of continuous learning and adaptation. The outcome depends on personal choices, efforts, and market changes. Importantly, no matter what the result is, one should draw experience from it and continuously grow and progress.
The key to determining the timing of foreign exchange investment and trading lies in accurately identifying cyclical patterns.
A shorter time frame can be used to identify breakout points for trading operations, while a longer time frame is mainly used to look for pullback opportunities. Within a shorter time frame, such as in a 1-hour chart, the closer the intervals on the candlestick chart, the more significant its indicative meaning is usually. In an ideal situation, a position with an interval of 1 to 2 1-hour candlesticks should be selected to carry out trading operations.
For a longer time frame, such as a daily chart, it can be used to identify pullback points. In foreign exchange investment trading strategies, using support and resistance levels is a relatively common practice, but this may also mean that challenges brought by false breakouts need to be addressed. Short-term trading is usually implemented at breakout points, while long-term foreign exchange investment trading is carried out at pullback points.
It is worth noting that shorter time periods are often accompanied by more market noise, which may interfere with trading decisions and have an impact on profitability. Relatively speaking, longer time periods show stronger market trends, and thus can provide more reliable profit opportunities.
The effectiveness of foreign exchange trading strategies is affected by many factors, including capital scale, mentality, technology, time frame, personality matching, internal mental method and personalized adjustment.
First of all, there are differences in capital scale. Some strategies may be designed for large-scale capital, and small investors may not achieve the same effect when adopting them.
Secondly, the coordination between mentality and strategy is crucial. Some strategies require investors to have patience and calmness. If individuals tend to make quick decisions, it may lead to poor strategy effects.
Furthermore, there are differences in technical execution. Different strategies have different requirements for technical execution. If technical execution ability does not match the strategy, the expected effect may not be achieved.
In addition, the matching degree of investment time frame will also affect the effectiveness of the strategy. There are differences in operation logic and time management between long-term strategies and short-term transactions. Mismatching may cause the strategy to fail.
At the same time, the fit between personal character and strategy cannot be ignored. The successful implementation of a strategy requires a fit with personal character, otherwise it is difficult to adhere to it for a long time.
In addition, the lack of internal mental methods may lead to ineffective strategy implementation. Experts usually have an internal trading philosophy.
Finally, personalized adjustment of strategies is essential. Successful trading requires continuous adjustment of strategies based on personal character and experience to form a trading system suitable for oneself.
In foreign exchange and gold trading, whether to adopt a short-term strategy or a long-term strategy mainly depends on factors such as the scale of capital, position size, and personal personality characteristics.
Long-term trading is not easily adhered to by ordinary people. It is not that most people do not want to conduct long-term trading subjectively, but rather that it is often difficult to hold in actual operations. Short-term trading faces greater pressure. Most people choose short-term trading usually due to limitations of their own conditions. This is closely related to an individual's capital position status, trading habits, and psychological construction level. Long-term trading has its unique advantages, and short-term trading also has corresponding benefits. As for which one is better between the two, there is currently no unified standard. The United Kingdom is the birthplace of margin foreign exchange trading. According to statistical data, about 75% of British foreign exchange traders are short-term traders, and long-term and swing traders account for about 25%. Trading itself is uncertain. Short-term trading is more uncertain compared to long-term trading. From a theoretical perspective, long-term trading has more advantages.
In the field of foreign exchange investment trading, achieving continuous growth of profits is a common demand.
However, for intraday traders in foreign exchange investment trading, reaching this goal is often extremely challenging. There are mainly two reasons: First, intraday price fluctuations are usually relatively limited; second, about 80% of trading days show choppy market conditions. In this case, if one tries to expect a significant increase in profits by holding positions for a long time without setting profit targets, it will often lead to the re-loss of the originally obtained profits. This is because about 80% of the intraday market is in a choppy market condition with relatively large volatility, and there are less than 20% of days with a unilateral trend.
In the field of foreign exchange investment trading, there is no need to feel ashamed when suffering significant losses.
Losses in foreign exchange investment trading are actually a test of an investor's stress resistance ability and also a process of accumulating experience. The greater the challenges faced in foreign exchange investment trading, the stronger the ability to withstand pressure. Just as a military leader will not entrust the task of commanding a major battle to a young officer who has never been on the battlefield, but will choose an experienced general. Only traders who have experienced large-scale fund operations and loss tests in foreign exchange investment trading are capable of managing tens of millions of funds.
Do not easily believe traders who claim to have never suffered losses in foreign exchange investment trading. They are likely to have not truly experienced the severe tests of the foreign exchange investment trading market. Foreign exchange investment traders who have truly seen big scenes and operated large amounts of funds can distinguish in their hearts which foreign exchange investment trading suggestions are valuable and which are false. Human nature is universal and interlinked. In essence, foreign exchange investment trading is a process of learning from failures. Those who can draw lessons from failures in foreign exchange investment trading will eventually achieve success. For traders with small amounts of funds in foreign exchange investment trading, if they have experienced a forced liquidation, it usually means that not only do they have limited funds, but they may also not have used leverage reasonably.
In the foreign exchange investment and trading industry, the incidence probability of depression is relatively high, which may be related to the psychological pressure endured by foreign exchange investment traders.
Anxiety usually arises from the gap between expectations and reality. If the trader's goal is not just limited to pursuing profits but focuses more on long-term strategies and stable operations, then the anxiety they feel may be reduced. Lowering expectations and making expectations more in line with the actual situation is one of the effective ways to relieve anxiety.
Frequent attention to the dynamics of the foreign exchange investment and trading market may increase pressure. In fact, most individual foreign exchange investment traders and institutional traders face the risk of losses, which undoubtedly increases the psychological burden of foreign exchange investment traders. Long-term exposure to capital fluctuations, anxiety, and excessive attention to trading may all exacerbate psychological pressure. If foreign exchange investment trading is the main source of personal income, this pressure may be further increased. In addition, doubts and criticisms from family and friends as well as financial losses may further aggravate depressive emotions.
In the field of foreign exchange investment and trading, the threshold for making profits is relatively high. High expectations are often accompanied by greater risk of disappointment. For those who fail to achieve expected returns in foreign exchange investment trading, feeling frustrated is a relatively common situation. However, successful foreign exchange investment traders usually show traits of thoughtfulness and calmness rather than just depression. Frequent trading behavior is in some conflict with human nature. Excessive trading activities may lead to mental stress, which is a realistic situation that foreign exchange investment traders need to face up to.
Even for a seasoned foreign exchange investment trader, there is still a possibility of suffering significant losses when engaging in short-term trading.
Essentially, trading is dealing with uncertainties. Compared with long-term foreign exchange investment, short-term foreign exchange trading involves more complex uncertainties. Analyzed from the perspective of probability theory, the difficulty of short-term foreign exchange trading is usually higher than that of long-term foreign exchange investment. In fact, most of the capital losses in foreign exchange investment occur in short-term trading. During the months of volatility in foreign exchange investment trading assets, the losses of short-term traders may exceed the losses caused by missing a major market trend. Short-term traders in foreign exchange investment trading are sometimes regarded as liquidity providers or atmosphere creators in the foreign exchange investment market. Although intraday foreign exchange investment trading may achieve profits in the short term, in the long run, losses in foreign exchange investment trading are almost inevitable. The annual volatility of mainstream currencies in the foreign exchange investment trading market usually does not exceed 20%, which is much lower than that of the stock and futures markets. Foreign exchange trading is considered to have a relatively high risk mainly due to its high leverage characteristics. Due to the relatively low volatility, it is difficult to quickly cover the opening cost. If the stop-loss is set too narrowly, it is easily triggered. Without leverage, the risk of foreign exchange trading may actually be lower than that of the stock market.
The buying and selling power in the foreign exchange market can appropriately draw on the trading rules of stocks to assist in judging the actual situation of foreign exchange transactions.
In stock trading, if all participants choose to sell and there is no one buying, the stock price may touch the limit down. Conversely, if all participants are buying and there is no one selling, the stock price may touch the limit up. When the selling power is greater than the buying power, the stock price usually falls; and when the buying power is stronger than the selling power, the stock price may have the possibility of rising. If there is no buyer to take over the seller's order, the stock price may continue to fall until a buyer buys at a lower price. In the state of limit down, the stock price will stop falling until a buyer intervenes. Only when the buyer is willing to accept the seller's price can the transaction be completed. If there is no buyer participation, a large number of sell orders may cause the stock price to fall sharply until it reaches the limit down. Under normal circumstances, there are both buyers and sellers at each price level, and the order size will determine the equilibrium position of the market.
The trading volume in the foreign exchange market is difficult to count, and people often easily overlook the real situation behind it: if everyone in the foreign exchange market buys a certain currency pair, then the price will tend to be stationary. To ensure market liquidity, market makers usually enter in the opposite direction. This not only provides liquidity to the market but also may obtain substantial returns. At the same time, batch stop-loss of retail positions with too narrow stop-loss settings forms a driving force consistent with market makers, making the trend more intense and allowing market makers, investment banks, and sovereign institutions to earn more.
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