Forex multi account manager | Use your trading account operating, investing, trading | Assist in self management of family office investment
In China, the act of managing others' investment accounts currently has some uncertainties in terms of legal provisions. In countries with more mature financial markets such as Europe and the United States, such behavior is legal and strictly regulated.
In these countries, agency custody, investment and trading services for foreign exchange accounts are common financial activities. In financially developed European and American countries, foreign exchange banks and investment platforms generally adopt the external manager model, that is, allowing professional fund managers to provide account management services for others. This service has different designations in different countries. For example, in Europe, it may be called MAM (Multi Account Manager) or PAMM (Percentage Allocation Management Module). In the United States, the well-known Interactive Brokers (IB) platform calls it a family office.
It is understood that although not all investment platforms in the United States have been used personally, it can be determined that in the United States, the practice of managing investment accounts through external managers is feasible. Although financial supervision in the United States is relatively strict, it is not without flexibility. For example, Interactive Brokers may have applied for and obtained corresponding licenses on its own due to its extensive popularity and influence, while smaller platforms may be unable to apply due to qualification restrictions.
Under this management model, there are mainly two profit-making methods: one is to obtain management fees by managing asset scale. This method has relatively stable returns but a relatively low growth rate; the other is to profit from capital appreciation. This method may have less returns but a higher growth rate. The former usually involves using other people's funds for investment, while the latter is mostly using personal funds. The advantage of investing with other people's funds is that even if there is a loss in investment, the manager can still stably collect management fees; while investing with personal funds completely depends on capital appreciation and at the same time needs to bear the corresponding loss risk.
Substitute investment and substitute trading of foreign exchange accounts usually adopt the co-managed account model.
Under this model, investment managers have the authority to execute transactions and are responsible for daily trading operations and management. At the same time, investment managers have no right to transfer customer funds to ensure the security of funds. Customers play the role of supervisors and can monitor the investment activities of accounts, but usually do not have the right to directly conduct transactions. This arrangement aims to enable investment managers to focus on the execution of trading strategies and customers to be responsible for risk control through clear division of labor and cooperation, so as to maximize the interests of both parties. Only after the customer decides to terminate the principal-agent relationship can the customer regain full control over his own account and conduct independent trading operations. This setting of co-managed accounts aims to achieve the dual goals of risk management and capital appreciation through clear division of responsibilities.
In the foreign exchange market, the investment journey is an important stage that every trader will inevitably experience.
On this development path, traders gradually move from facing many challenges to proficiently mastering various skills, and from complex and cumbersome analysis to simple and efficient decision-making. This is the natural development path for investor growth. Investors usually study various technical indicators and chart patterns in depth, but in the end they often find that the most effective strategies are often based on the most basic tools, such as naked candlestick charts and moving averages. This transformation from complexity to simplicity is an inevitable process that investors must go through in the field of technical analysis. The growth process is often cyclical, and every step we go through is extremely valuable. These experiences jointly shape our investment strategies and enable us to more accurately grasp market dynamics. Therefore, every step we take is an indispensable and important part of moving towards success.
In foreign exchange investment trading, the essence of watching the market lies in monitoring the kinetic energy of candlestick.
For breakthrough entry, it is appropriate to use a small cycle for judgment because the small cycle can reflect market dynamics more sensitively. In the case of entry on pullback, a large cycle is more appropriate because it can provide more stable market trend information.
When seeking market breakthroughs, a shorter time period can be used as an effective reference because it has a stronger ability to perceive market dynamics. In contrast, when the trading strategy is based on price pullback, a longer time period can provide more stable trend information.
The cycle resonance theory points out that a longer time period is gradually accumulated from shorter time periods. This means that changes in the short cycle will eventually have an impact on the long cycle. Therefore, changes in market trends often first appear in shorter time periods.
When conducting market-watching operations, in fact, it is monitoring the price kinetic energy displayed by the candlestick chart. Through market watching, traders can perceive the speed and strength of price changes, which is crucial for capturing short-term trading opportunities. Especially in periods when the market shows a strong trend, short-term trading can provide opportunities for quick profits.
Although some people may regard foreign exchange investment trading as a form of gambling, this view is somewhat inaccurate.
Admittedly, gambling mainly depends on luck, while investment trading pays more attention to technology and strategy. In the field of investment, technical analysis plays a crucial role. It can help investors understand market dynamics and make wiser decisions.
Indeed, technical analysis is not invincible, but it is undoubtedly one of the key elements for investment success. Investment decisions lacking technical support are like sailing without a map, with extremely high risks. Casinos may not worry about individual gamblers winning some money because in the long run, casinos always have the upper hand. Similarly, the investment market is not afraid of investors making profits, but for those investors who lack the necessary knowledge and skills, the market may become extremely cruel.
Diligence and continuous learning are important factors for investment success. Through continuous learning and practice, investors can improve their technical abilities and thus achieve better performance in the market.
In the field of foreign exchange investment and trading, one of the main challenges faced by wealth management on behalf of clients is that there is a certain degree of difficulty in obtaining capital. In comparison, managing trading accounts on behalf of investment clients is relatively easy because this process does not involve direct contact with funds.
Foreign exchange traders who can provide stable and considerable returns usually attract a large amount of capital to seek cooperation. In the initial stage of cooperation, investors often require capital preservation, that is, traders need to pay a certain margin to obtain account management rights. This is a relatively common operating mode among foreign exchange traders in China. If they can make continuous profits, traders will gradually obtain more funds that do not require capital preservation. Many fund managers have developed step by step starting from this. Of course, there are also some investors who do not require capital preservation, but this is usually based on a high degree of trust.
However, there is a paradox here: If traders perform well, why do they need external funds? Conversely, if they perform poorly, what's the point of attracting funds? After all, it is impossible to achieve profitability.
In China, foreign exchange investment and trading is still a relatively niche field that is not widely known to the public. The number of people who truly understand this industry is limited, and there are even fewer people who are proficient in investment and trading. Therefore, I have never considered looking for clients with entrusted accounts in China. In addition, Chinese people generally have a suspicious mentality, and sometimes there may be cases of dishonesty. For foreign exchange investors with large amounts of capital, there is no need to ask for trouble and unnecessary disputes should be avoided.
Account custody services like MAM (Multi-Account Manager) and PAMM (Percentage Allocation Management Module) are similar to Alipay in China. Through mechanism design, they effectively avoid the risks of testing human nature and defaulting. But unfortunately, these custody mechanisms are abused by some people in China and become tools for brushing orders, thus damaging their reputations.
In short, once any excellent foreign exchange management mechanism or tool is flooded or used by a large number of Chinese investors, the reputation and healthy development of this industry will face a huge crisis.
In the foreign exchange investment trading market, the price chart (candlestick chart) is regarded as a collection covering all relevant information.
However, the candlestick chart cannot directly present the speed of price changes within a specific time period, which requires investors to analyze and supplement. In addition, a single candlestick change may cause interference to long-term traders and weaken their confidence in making entry decisions. This is one of the limitations of the candlestick chart.
In the process of foreign exchange investment trading, there is no fixed and unchanging standard because this is not a process of precise measurement. When it is observed that the candlestick on the candlestick chart gradually shorten and the solid part becomes smaller, it usually means that the market momentum is weakening. Although the candlestick chart can be used as a reference for entering trades, for long-term holdings and realizing profits, analyzing the trend of the entire wave band is more crucial. Reading the candlestick chart alone has certain significance for determining the entry timing, but its help in long-term holding and profit prediction is relatively limited.
In the field of foreign exchange investment and trading, when price momentum shows an insufficient trend, the market will exhibit unique operating characteristics.
First of all, the market enters a state of stillness or equilibrium. Price fluctuations tend to converge. There is neither an obvious upward trend nor a clear downward driving force, thus forming a sideways pattern. Secondly, a shrinking trading volume becomes the norm. The forces of buyers and sellers approach balance. Market activity is significantly reduced, and most participants adopt a wait-and-see attitude. Moreover, due to the exhaustion of momentum, when prices reach key levels, they are more likely to be counteracted by resistance or support, thereby increasing the possibility of market reversal. In addition, traders' assessment of the profit potential of the current price trend becomes unclear, resulting in a reduction in exploratory trading. The market enters an ambiguous state waiting for the injection of new momentum.
From the perspective of candlestick pattern analysis, a large solid positive or negative line directly reflects that the market has strong momentum, while a small entity reveals a signal of insufficient momentum. Observing the slope is also of crucial importance. A steep candlestick slope means that the market is accelerating, while a gentle slope implies a weakening of momentum. Subtle changes in trends, such as a shift from linear movement to slanted fluctuations, may be a precursor to momentum conversion. At the same time, identifying key breakouts and pullbacks is the key to grasping momentum changes. A strong breakout is often accompanied by a large candlestick entity, and the pullback process is accompanied by the gradual dissipation of momentum. In particular, it should be noted that the formation of trading ranges and N-shaped structures is an important signal for the start of market trends. At this time, changes in momentum play a decisive role in predicting market trends.
In the field of trading, indicators are regarded as tools with an auxiliary nature.
It should be made clear that indicators are not the key factors directly determining the success or failure of trading. Their main role is to provide traders with a specific perspective so that traders can understand the market from different dimensions.
Price fluctuations, as the core element of the market, indicators are tools processed by specific algorithms based on data such as price, trading volume, and time period. Such tools reflect the perspective of the indicator creators and their understanding of the market. The purpose is to reveal market patterns and make them easier to be recognized and interpreted.
The value of indicators is reflected in their ability to reveal market laws. When these laws are in line with the actual operation of the market, indicators can play their due roles. A profound understanding of the nature of technical indicators is extremely important: they are an expression based on price definitions by indicator creators, reflecting the will and personalized perspective of the creators. Therefore, the success of trading ultimately depends on the trader's logic and skills rather than simply relying on indicators.
Effective indicators are those tools that can match market laws. They can be regarded as an auxiliary to trading logic and psychological comfort, but by no means decisive factors. Just like the role of traffic lights and road signs when crossing the road, they only provide guidance, and the final safety depends on personal behavior and judgment. In trading, the key lies in being able to identify and deal with risks rather than blindly relying on indicators. Even in the absence of indicators, traders can make decisions through their own analysis and judgment. Importantly, regardless of the indicator situation, traders should remain highly vigilant and respond to market changes in a timely manner to ensure trading success.
In conclusion, technical indicators are auxiliary tools for traders to understand and operate the market, providing traders with a perspective and a means of pattern recognition. However, the success of trading depends more on the trader's logic, skills, and adaptability to market changes. Indicators can be used as references, but should not be the only basis for decision-making.
In short-term trading, being in a locked-in position can result in a floating loss. In long-term investment, however, it must lead to a floating profit.
During the process of short-term trading, being locked in means that in most trading periods, the investment value is lower than the purchase cost, thus generating a floating loss.
In long-term investment, being locked in might imply that during most of the holding period, the investment value is higher than the purchase cost, thereby achieving a floating profit. Choosing the correct currency pair for trading is of utmost importance because even when locked in, a high-quality currency pair may bring substantial returns if held for the long term. Conversely, choosing an improper currency pair may lead to significant losses.
Forced holding of a locked-in currency pair is not true long-term investment. Firstly, this forced holding will occupy funds, reducing the liquidity and usage efficiency of funds, while increasing the time cost and possibly missing other profit opportunities. Secondly, holding a locked-in currency pair is accompanied by high risks, including continuous floating losses and the possible accumulation of a large overnight interest spread, which are costs that investors must face. Finally, this state may also have a negative impact on the psychological state of investors, leading to emotional fluctuations and subsequently affecting other investment decisions.
For short-term trading, losses may be temporary, while medium- and long-term investment pays more attention to the extension of trends. Long-term investment focuses more on fundamental analysis, while short-term trading focuses more on the interpretation of market concepts, the grasp of sentiment, and the control of trading rhythms. Therefore, when facing a locked-in situation, investors should flexibly adjust according to investment strategies and market conditions to reduce losses and seek the best investment opportunities.
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+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou
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