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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 two-way forex trading, long-term forex traders often don't pay excessive attention to the lagging nature of moving averages.

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In fact, the lagging nature of moving averages can actually be advantageous in long-term trading. Entering the market slightly later can, to some extent, eliminate false trends in the market, thereby reducing the risk of misjudging trends. Long-term forex traders primarily use moving averages not for exiting positions, but as a reference for entering them. They typically employ a small position strategy, continuously accumulating positions through numerous entries and additions based on moving averages. This strategy may continue for several years until market conditions change, at which point they will consider exiting. Therefore, for long-term forex traders, the core value of moving averages lies in providing decision support for entry, not in determining exit timing.
In contrast, short-term forex traders may find the lagging nature of moving averages inconvenient. Whether entering or exiting a trade, the lagging nature of moving averages can cause traders to miss optimal entry and exit points. This is why experienced short-term traders prefer candlestick charts over moving averages. Candlestick charts more intuitively reflect short-term market fluctuations and price changes, helping short-term traders make faster decisions and better adapt to rapidly changing market environments.

In the two-way trading market of forex investment, "enlightenment" is a crucial turning point for traders, marking their transition from confusion to maturity and from losses to profits. This moment of brilliance is not a chance flash of inspiration, but rather a breakthrough in understanding the essence of trading after long-term practical experience. While the core content of this enlightenment may differ for traders with different trading timeframes (short-term and long-term), it ultimately points to a simplification of trading rules and a precise grasp of strategy adaptability, thereby fundamentally changing their trading behavior and results.

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For short-term forex traders, the arrival of this moment of enlightenment is often accompanied by a complete overturning of two core understandings: "opportunity screening" and "tool selection." Before achieving enlightenment, most short-term traders fall into the trap of "frequent trading" and "indicator dependence": on the one hand, they believe that "more trading means more profit," constantly monitoring the market to try and capture every short-term fluctuation opportunity. However, this results in accumulated transaction fees, increased decision-making errors, and continuous losses due to frequent entry. On the other hand, they over-rely on various technical indicators in the chart (such as MACD, RSI, KDJ, etc.), attempting to find the "perfect signal" by overlaying multiple indicators. However, contradictory signals or lag between indicators interfere with their true judgment of the market. When short-term traders experience their first enlightenment—realizing that "there are not excellent short-term entry opportunities every day"—their trading logic undergoes a fundamental shift: they begin to understand that the core of short-term trading is not "the quantity of opportunities captured," but "the quality of opportunities selected." They only enter the market when there is an entry signal that aligns with their strategy and demonstrates a clear bullish or bearish advantage (such as a breakout of key support or resistance levels, or confirmation of classic candlestick patterns). The rest of the time, they choose to observe. This cognitive shift directly reduces losses from ineffective trading, gradually freeing them from the predicament of "the more you trade, the more you lose."
The second epiphany for short-term traders is recognizing that "most forex trading indicators are useless, only candlestick charts have practical value." After repeated verification in long-term practical experience, they discovered that supplementary indicators are essentially a secondary processing of price movements; their signal generation often lags behind candlestick charts, and most indicators frequently issue false signals in volatile markets, not only failing to provide effective guidance but also increasing decision-making interference. Candlestick charts, on the other hand, as a tool directly reflecting price fluctuations, can present the opening price, closing price, highest price, and lowest price in real time within a unit of time. Through single candlestick patterns (such as hammer lines and shooting stars) or combination patterns (such as engulfing patterns and morning stars), they intuitively convey the result of the battle between bullish and bearish forces in the market, serving as the core basis for judging short-term trend reversals and continuations. When short-term traders completely abandon their reliance on redundant indicators and focus all their energy on candlestick chart analysis and opportunity screening, their decision-making efficiency and accuracy will significantly improve. The first epiphany allows them to "stop losing money" and escape the trap of frequent trading; the second epiphany leads them "to stable profits," establishing a short-term trading system centered on "high-quality opportunities + candlestick signals," achieving a cognitive leap from "passive following" to "active screening."
Unlike short-term traders, the epiphanies of long-term forex traders revolve more around "strategy safety" and "tool compatibility," with the core being a deep understanding of the "logic of long-term profitability." Before this epiphany, many long-term traders make mistakes in "position management" and "indicator selection": either attempting to pursue short-term windfalls through "heavy leverage," resulting in stop-loss triggers due to short-term market fluctuations, or being unable to adhere to long-term strategies due to excessive position pressure; or blindly applying short-term trading indicators such as MACD and RSI to judge long-term trends, leading to misjudgments of trend direction and missing genuine long-term opportunities. The first epiphany for long-term traders comes when they realize that "lightly leveraged long-term positions + carry trades" is the core strategy for long-term profitability. They discover that only by adopting a lightly leveraged approach, diversifying through numerous small positions (covering different currency pairs and trend phases), can they effectively mitigate the risks of short-term market fluctuations. Even if individual positions experience floating losses, it won't have a fatal impact on the overall account. Simultaneously, combining a lightly leveraged long-term strategy with a long-term carry trade strategy (utilizing interest rate differences between different currency pairs to earn interest income through long-term holding) not only amplifies profit potential through trend trading but also hedges some potential risks with carry trade income, forming a trading loop of "extremely low risk and high certainty of return." When this understanding is formed, long-term traders completely shed the fear of "heavily leveraged losses" and achieve the interim goal of "no more losses," because the combination of lightly leveraged positions and carry trades allows the account to largely avoid the possibility of significant losses during long-term holdings (usually several years), retaining only the "highly profitable" trend direction.
The second epiphany for long-term traders lies in the "extreme simplification of indicator tools"—recognizing that most indicators in the chart are useless, with only moving averages possessing value for judging long-term trends. Through long-term practical experience, they gradually discover that the design logic of most technical indicators is more suited to short-term market conditions and cannot reflect the stability of long-term trends: for example, MACD frequently shows repeated "golden crosses and death crosses" in long-term trends, and RSI remains in overbought or oversold states due to the continuation of long-term trends, losing its reference value; while moving averages, as a tool for smoothing price movements, can clearly show the direction of long-term trends (upward, downward, or oscillating). By observing the relative position of price and moving averages (such as price rising along the moving average, or rebounding after retracing to the moving average), the continuation and reversal signals of the trend can be accurately judged, serving as the core basis for long-term holding decisions. When long-term traders abandon the focus on redundant indicators and use moving averages as the sole tool for trend judgment, the consistency of their strategy execution improves significantly. The first epiphany helps them "avoid losses," establishing a safe position and strategy framework; the second epiphany allows them to "achieve stable profits," continuously generating returns in long-term trends through a combination of "moving averages guiding trends + light, diversified positioning + carry trades," completing a cognitive upgrade from "trend misjudgment" to "precise trend following."
Essentially, the moments of epiphany for both short-term and long-term traders follow a cognitive pattern of "from complexity to simplicity": short-term traders abandon "frequent trading" and "reliance on multiple indicators," focusing on "high-quality opportunities + candlestick charts"; long-term traders abandon "heavy-position gambling" and "short-term indicator interference," adhering to "light-position carry trades + moving average trends." This epiphany is not a denial of trading knowledge, but a "return to the essence of trading"—the core of forex trading has never been "mastering more tools" or "capturing more opportunities," but rather "finding a strategy that suits one's own timeframe" and "firmly executing it." The arrival of this epiphany is the sign that a trader has thoroughly understood this essence, and a crucial leap from "market follower" to "market conformist."

In the two-way trading system of forex investment, the activity of the Hong Kong forex market is closely related to the mainland forex trading community. When this important group of traders is lost, the Hong Kong forex trading sector gradually becomes increasingly quiet, especially in the forex margin trading sector, where this phenomenon is even more pronounced.

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A deeper analysis reveals that the "sluggishness" of Hong Kong's forex margin trading business is not accidental, but rather a natural consequence of the maturing regulatory system and the accelerated internationalization of the market. If the core influencing factors were summarized in one sentence, it could be: "Hong Kong's regulations are too strict, clients are too savvy, and there are too many overseas platforms." This statement accurately points to the key factors in the current market landscape.
From the perspectives of different participants, the impact of this change varies significantly. For regulators, strict regulatory measures effectively reduce various risks in market operations, ensuring the stability and order of the financial market, which aligns with the core objectives of financial regulation. For investors, with the increasing internationalization of the market and the emergence of overseas platforms, their choices have greatly expanded, allowing them to select more suitable investment channels and products based on their needs and risk preferences. However, for local forex brokers, the situation is less optimistic. Stricter regulations lead to increased operating costs, and increased investor choices intensify market competition. These multiple factors combined have significantly compressed brokers' profit margins, leaving many institutions facing the dilemma of unsustainable operation.
Further exploration of the relationship between Hong Kong's local forex margin trading business and mainland residents reveals complex regulatory policies and legal issues, primarily encompassing three levels: mainland China's foreign exchange management regulations, Hong Kong's financial regulatory system, and the gray area of ​​cross-border service regulation. According to relevant regulations, licensed forex margin trading companies in Hong Kong are generally prohibited from arbitrarily promoting, soliciting business, or providing related services to residents outside Hong Kong (including mainland China residents), unless their business model and operating procedures fully comply with the regulatory requirements of the client's jurisdiction. In mainland China, forex margin trading is a type of financial business explicitly prohibited to retail individuals, fundamentally limiting the possibility for mainland residents to participate in Hong Kong forex margin trading through formal channels.
In actual business operations, Hong Kong forex margin brokers are subject to strict legal constraints, prohibiting them from actively attracting mainland clients, and cross-border marketing activities are explicitly forbidden. Even if a broker holds a legal license in Hong Kong, they cannot circumvent legal restrictions and cannot proactively promote their business, assist with account opening, or conduct promotional activities to mainland residents. Under this regulatory environment, Hong Kong brokers are neither willing nor daring to proactively accept mainland clients, fearing severe regulatory penalties for illegal operations. Simultaneously, mainland investors face numerous restrictions and difficulties when remitting funds to Hong Kong brokers, further hindering the development of related business between the two regions.
Looking back at the development of Hong Kong's local forex margin trading business, for a considerable period, many brokers relied heavily on mainland clients for their main source of revenue, with the mainland market holding a crucial position in their business strategy. However, since 2016, a series of policy adjustments and market changes have had a disruptive impact on this landscape. On the one hand, the mainland strengthened its control over cross-border foreign exchange flows, strictly restricting illegal capital outflows, thus severely limiting the channels for mainland funds to enter the Hong Kong forex margin trading market. On the other hand, Hong Kong regulators imposed higher requirements on local securities firms, explicitly requiring them to cut off all non-compliant business channels and standardize business operation procedures, further compressing the space for brokers to connect with mainland clients.
Under the dual effects of internal and external policy adjustments, the number of major clients of Hong Kong local forex margin brokers has decreased sharply, and the scale of their business has shrunk significantly. Meanwhile, changes in the market environment have also driven a shift in the investment preferences of retail investors. Some investors have turned their attention to emerging investment areas such as crypto assets, while others have chosen to participate in forex trading directly through overseas platforms. This has further diverted client resources that originally flowed to local Hong Kong brokers. A sharp decline in client numbers, regulatory restrictions on trading leverage, and persistently high compliance operating costs have combined to ultimately lead to an increasingly sluggish development of the Hong Kong forex margin trading business, with no significant signs of improvement in the short term.

In the two-way trading system of forex investment, there are clear compliance boundaries for business promotion activities between Hong Kong forex margin brokers and mainland Chinese citizens. The core principle is that brokers may not promote forex margin trading to mainland citizens. This restriction is not a reflection of a single region's regulatory requirements, but rather a result of the coordinated action of relevant financial regulatory rules in mainland China and Hong Kong, and has a clear legal basis and regulatory direction.

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From the perspective of Chinese mainland regulations, relevant regulatory systems have long established clear constraints on the provision of foreign exchange margin trading services within and outside China. According to currently effective financial regulations in China, no institution may provide foreign exchange margin trading services to any client (including domestic individuals and institutions) without the approval of the regulatory authorities. This regulation cuts off the possibility for domestic institutions to conduct such business at the source of market access, and also sets a red line for overseas institutions to provide related services to domestic entities. Essentially, this is to maintain the order of the domestic foreign exchange market, prevent cross-border financial risks, and protect the legitimate rights and interests of ordinary investors from illegal financial activities.
From a Hong Kong regulatory perspective, the Securities and Futures Commission (SFC), responsible for regulating the local financial market, has clearly defined the business scope of licensed forex margin brokers in Hong Kong. It specifically emphasizes that licensed brokers are prohibited from engaging in forex margin trading activities in mainland China without approval from mainland regulatory authorities, and are also prohibited from assisting others or mainland investors in conducting such illegal transactions. To further strengthen regulatory enforcement, the SFC has also imposed specific compliance requirements on licensed brokers. If a licensed broker is currently providing forex margin trading services to mainland investors or promoting related businesses, it must immediately conduct a comprehensive review of its activities to verify compliance with relevant mainland laws and regulations. If any non-compliant business practices are discovered, such activities must be terminated immediately, and the relevant information must be reported to the SFC in a timely manner as required by regulations, ensuring that regulatory authorities can monitor market dynamics in real time and address potential compliance risks promptly.
It is particularly important to note that this dual regulatory constraint not only restricts the business activities of brokers but also closely relates to the investment behavior of mainland residents. If mainland residents circumvent regulatory restrictions to participate in offshore forex margin trading, their actions may violate the provisions of the "Administrative Measures for Individual Foreign Exchange" regarding the scope of individual foreign exchange use and cross-border capital flows, facing corresponding legal risks. For Hong Kong forex margin brokers, promoting related services to mainland citizens inherently carries multiple risks. On the one hand, they may face severe regulatory penalties for violating the rules of both jurisdictions, including but not limited to fines, license restrictions, or even license revocation. On the other hand, because such promotional activities do not comply with mainland regulations, in the event of transaction disputes or fund security issues, the relevant agreements between brokers and investors will not be recognized under Chinese law. Investors' fund security and legitimate rights will be difficult to protect through legal channels, and brokers may also become embroiled in legal disputes due to their own violations, severely damaging their long-term business reputation.
From the perspective of overall financial market regulation, the strict constraints imposed by regulatory authorities in both regions on Hong Kong brokers promoting forex margin trading to mainland citizens are essentially based on the shared goals of cross-border financial risk prevention and control, investor suitability management, and maintaining financial market stability. Forex margin trading inherently possesses high leverage, with a risk factor far exceeding that of ordinary financial products. Mainland retail investors exhibit varying risk identification and risk tolerance capabilities; without effective regulation, this could easily lead to investor losses and capital outflows. Furthermore, regulatory arbitrage in cross-border transactions could disrupt the fair order of the financial markets in both regions. Therefore, explicitly prohibiting brokers' illegal promotional activities can prevent risk transmission at its source and guide financial market participants to conduct business within a compliant framework, ultimately achieving the dual goals of protecting investor interests and maintaining financial market stability.

In the two-way trading scenario of foreign exchange investment, regulatory agencies have strict compliance definitions for the business promotion activities of Hong Kong forex margin brokers targeting mainland Chinese citizens. Based on long-established regulatory practices and clear rule guidelines, the following specific behaviors are usually identified as illegal promotions. Each type of behavior has its own manifestation and regulatory focus, collectively forming a compliance constraint framework for brokers' business promotion activities.

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Among them, direct marketing is one of the more common forms of illegal promotion. Specifically, it refers to Hong Kong forex margin brokers actively promoting forex margin trading services to mainland citizens through various direct communication channels such as telephone, SMS, email, and social media. The core problem with this type of behavior lies in its breach of the geographical restrictions imposed by the regulatory authorities of both mainland and Hong Kong on the promotion of cross-border financial services. Without compliance approval from mainland regulatory authorities, it directly promotes financial products not permitted for mainland retail investors to the target group, easily leading investors to participate in transactions without sufficient risk awareness. It also poses a potential threat to the order of foreign exchange management and the stability of the mainland financial market.
Public promotion refers to the act of introducing foreign exchange margin trading services to the public through advertisements or other forms of promotional materials published in mainland media (including various online media platforms and traditional offline media). The illegality of this behavior lies in using mainland public communication channels to expand business influence, essentially constituting unlicensed cross-border financial advertising activities. Since mainland regulations explicitly prohibit retail individuals from participating in foreign exchange margin trading, the dissemination of related promotional materials not only misleads investors, making them mistakenly believe that such transactions are legal and compliant, but may also trigger group investment risks, thus becoming a key target for investigation and crackdown by regulatory agencies.
Organizing events is also considered illegal promotion. Specifically, this involves Hong Kong forex margin brokers holding various offline or online events in mainland China, such as investment seminars, workshops, and training courses, and promoting forex margin trading during these events. These activities often use names like "investment education" or "market analysis" as a cover, but in reality, they attract mainland citizens' attention through on-site explanations and case demonstrations, thereby guiding them to participate in related transactions. The violation lies in using offline interactive scenarios to enhance the promotional effect, and the fact that the events are held in mainland China directly violates mainland regulations regarding the business activities of foreign financial institutions within the country. It also increases the risk of investors suffering financial losses due to gullibility in believing the content of these events.
Agent recruitment involves Hong Kong forex margin brokers entrusting mainland institutions or individuals as agents. These agents are responsible for attracting clients or providing trading guidance to clients within mainland China. This model expands the client base by building a mainland agent network, essentially transferring and extending illegal promotional activities through agency relationships. Mainland agents or individuals often lack the necessary financial business qualifications and compliance awareness. In attracting clients, they may use misleading statements such as exaggerating returns and concealing risks. Brokers, by using agency arrangements, circumvent regulatory restrictions on direct promotion, further exacerbating compliance risks in cross-border financial services and significantly increasing the difficulty for regulatory authorities to trace and control the business chain.
Inducing account opening is a more direct violation. Hong Kong forex margin brokers use various means to induce mainland citizens to open forex margin trading accounts, prompting them to actually participate in trading. These inducements may include offering account opening incentives, lowering trading thresholds, and promising returns. The core purpose is to push clients to complete the account opening process and convert them into customers. Such behavior directly crosses the red line of mainland regulation, as mainland laws explicitly prohibit retail individuals from opening such trading accounts. The brokers' inducements not only help investors circumvent compliance restrictions on account opening but also leave investors' funds in a state of uncontrolled cross-border flow. This violates mainland foreign exchange management regulations and exposes investors' funds to significant risks. In the event of platform default or misappropriation of funds, investors will find it difficult to protect their rights through legal channels.
It is particularly important to emphasize that even if a Hong Kong forex margin broker holds a valid license issued by the Hong Kong financial regulatory authorities and is qualified to conduct business in Hong Kong, this does not necessarily mean that its promotional activities in mainland China are compliant. If a broker's promotional activities are not approved by mainland Chinese regulatory authorities, regardless of the validity of its Hong Kong license, the relevant activities are still considered illegal operations. This regulatory principle reflects the territorial jurisdiction characteristic of financial regulation in both regions, meaning that overseas financial institutions conducting business activities in mainland China must comply with mainland laws, regulations, and regulatory requirements. Their overseas licenses cannot replace mainland compliance approvals, nor can they be used as a basis for circumventing mainland supervision.
Furthermore, according to the Hong Kong Securities and Futures Ordinance and the specific regulatory requirements of the Hong Kong Securities and Futures Commission (SFC), employees of licensed securities firms are prohibited from intervening in clients' fund transfers and currency exchange processes, and are especially prohibited from recommending informal currency exchange channels. This provision further strengthens the constraints on the compliance of cross-border business from the Hong Kong regulatory perspective, indicating that Hong Kong regulators also do not allow licensed financial institutions to indirectly support or promote illegal business promotion activities targeting mainland citizens by assisting clients in resolving fund flow issues. Fund transfers and currency exchange are crucial for mainland citizens participating in overseas foreign exchange margin trading and are a key area of ​​mainland foreign exchange management. The strict restrictions imposed by Hong Kong regulators on this环节 (link/step) are essentially aligned with mainland regulatory objectives, jointly cutting off the funding chain of illegal activities and preventing the transmission and spread of cross-border financial risks. This further confirms the clear prohibition by regulators in both regions against Hong Kong brokers engaging in illegal promotional activities in mainland China.

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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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