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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, the effectiveness of technical analysis needs to be verified through practice.

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Comparing learning technical analysis to passing an exam and practicing real trading to a job clearly illustrates that the value of technical analysis must be tested through practical experience. A high score on an exam doesn't guarantee a high salary at work, as work requires creating real value. Similarly, theoretical knowledge of technical analysis needs to be validated in actual trading. If it can't generate profits in practice, then technical analysis won't be effective. This is similar to the principle that if you can't create value for your boss, he won't pay you a high salary, even if you have a high exam score.
Practice is the only way to verify the effectiveness of technical analysis. Traders need to apply what they've learned to real trading and verify its effectiveness through actual practice. Initially, you can invest and trade with a smaller amount of capital, gradually accumulating experience and finding a trading rhythm that suits you. This process can be considered a "training period" for trading, during which traders need to continuously learn and adjust to market fluctuations. Only after this training period, when true profitability can be achieved, can technical analysis be considered useful.

In the financial investment field, especially for investors with experience in forex trading, a growing consensus is that it is often easier to achieve profit targets by switching to stock investing than by trading in the forex market.

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This difference in profitability isn't due to a sudden improvement in investor skill, but rather is determined by the core characteristics, risk structures, and regulatory environments of the forex and stock markets. The forex market's inherent low liquidity, low returns, and high-risk structure make it a more challenging investment than the stock market. The stock market's relatively well-developed risk mitigation mechanisms provide investors with a more favorable environment for profitability.
From a market perspective, the core differences between the foreign exchange market and the stock market primarily lie in the relationship between liquidity and risk and return. The foreign exchange market trades currency pairs, and its operations are subject to real-time monitoring and intervention by central banks. To maintain economic stability and safeguard trade competitiveness, central banks use interest rate adjustments, open market operations, and foreign exchange reserve adjustments to maintain a relatively stable exchange rate and avoid drastic fluctuations. This directly leads to the foreign exchange market's "low volatility, low risk, and low returns" characteristics. On the one hand, the probability of large-scale, one-way market movements is extremely low, and even if they do occur, they are often short-lived, making it difficult to create sustained profit windows. On the other hand, the liquidity of the foreign exchange market is far lower than that of the stock market. Especially during non-main trading hours, the bid-ask spread of currency pairs may widen, exposing investors to slippage risks when closing positions, resulting in reduced actual returns. More importantly, foreign exchange investment is essentially a "big bet for small gains" market—relying on large capital and long-term cyclical investment strategies to achieve reasonable returns through compound interest, rather than the stock market, which relies on factors such as individual stock performance growth and industry dividends to create "small bet for big gains" opportunities. This difference in attributes fundamentally determines the greater difficulty of profiting in the foreign exchange market.
In contrast, while the stock market also carries risks, for the average investor, the profit path is clearer and the risk mitigation mechanisms are more comprehensive. The stock market trades shares of listed companies. Investors can identify stocks with growth potential by analyzing company fundamentals (such as revenue growth, profit levels, and industry status) and tracking industry trends (such as policy support and technological innovation). Profits can be generated through the growth of company value. This "value-driven" profit model is relatively stable and replicable. At the same time, some stock markets have implemented protective mechanisms to further reduce investor operational risk. For example, most markets do not support two-way stock trading (only long positions are allowed), preventing investors from incurring additional losses in a falling market due to misjudgment. Furthermore, stock trading generally does not employ leverage (or leverage ratios are extremely low), strictly limiting investors' losses to their principal. This eliminates the leverage-amplifying effect seen in the foreign exchange market, where "small amounts of principal can lead to large losses." While these mechanisms cannot completely eliminate risk, they provide investors with a more controllable operating environment and reduce the probability of extreme losses due to operational errors or market fluctuations.
From a risk perspective, the foreign exchange market is far more risky than the stock market, which is the core reason why foreign exchange investors suffer higher losses. The high risk in the foreign exchange market stems primarily from two main mechanisms: first, leveraged trading. Most forex platforms offer leverage ratios of 1:50 or even 1:100. While leverage can amplify potential returns, it also multiplies risk. For example, with 1:100 leverage, a 1% fluctuation in a currency pair could result in a 100% loss of the investor's principal. This risk exposure is extremely difficult for the average investor to manage. Second, two-way trading and the T+0 system allow for multiple opening and closing positions within the same day, allowing for both long and short positions. While this highly flexible trading mechanism offers more flexibility for professional investors, it can easily encourage frequent trading for the average investor, leading to cumulative losses caused by emotion or misjudgment. In contrast, risks in the stock market are more manageable: low or no leverage ensures that investors' losses remain within their principal. One-way trading (except in some markets) prevents investors from blindly shorting during a downtrend. The T+1 system (in some markets) limits frequent intraday trading and reduces irrational behavior caused by short-term fluctuations. These differences are directly reflected in the proportion of investors who suffer losses—the proportion of those who lose money in the forex market is far higher than in the stock market, and the magnitude of the losses is often greater.
In reality, the investment paths of most investors also confirm the principle that "profiting in forex is difficult, while stocks are relatively easy to trade": many investors only turn to the stock market after experiencing sustained losses in the forex market. This shift is not accidental; it is a rational choice made by investors after firsthand experience with the risks and difficulty of profiting in both markets. In the forex market, investors may struggle to achieve stable profits due to leverage, uncontrollable volatility, and insufficient liquidity, even after devoting considerable time to learning. However, turning to the stock market, with its clearer value proposition and more comprehensive risk protection mechanisms, investors are more likely to find a profit model that suits them. For example, long-term holding of high-quality stocks to earn dividends and share price growth, or swing trading to capture industry rotation opportunities, all of which are more feasible and stable than in the forex market.
Investors who have experienced stock market failures should be wary of the misconception of turning to the foreign exchange market for a turnaround. Stock investment failures often indicate deficiencies in fundamental analysis, risk management, or mindset management. The complexity and high risk of the foreign exchange market can further amplify these deficiencies, leading to even greater losses. If stock investors seek a new path to profitability, they should prioritize building experience and improving their skills in the more familiar and less risky stock market rather than turning to the more challenging foreign exchange market. After all, the core goal of investing is to achieve steady growth of principal, not to risk a comeback in a high-risk market. Choosing a market that matches one's skills and offers manageable risk is the prerequisite for long-term profitability.
In summary, the fact that foreign exchange traders find it easier to profit from stocks is fundamentally a result of the differences in the characteristics, risk structures, and protection mechanisms of the two markets. The low liquidity, low returns, and high leverage of the foreign exchange market make it more challenging to profit than the stock market. The value-driven approach and comprehensive risk mitigation mechanisms of the stock market, on the other hand, provide a more favorable environment for investors to profit. For investors, recognizing the fundamental differences between the two major markets and choosing appropriate investment areas based on their own capabilities and risk tolerance, rather than blindly chasing high-risk markets, is the key to achieving sustainable profits. Investors who have previously experienced losses in the stock market should especially avoid the high-risk traps of the forex market. Gradually improving their investment skills in a more controlled environment is the rational choice.

In the two-way trading of forex, retail traders with small capital have gradually come to realize a frustrating reality: even if they have access to insider information, it is of little use to them.

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This is because their initial capital is relatively small, and their limited capital base makes it difficult for them to achieve significant profits through insider information. In the forex market, capital size often determines a trader's tolerance for risk and the potential for profit. For retail traders with small capital, even if they could double or even exceed their returns with insider information, such profits would still be far from enough to achieve financial freedom.
This reality has led retail forex traders to gradually lose envy of large financial institutions such as investment banks, funds, and sovereign wealth funds, which have access to insider information. These institutions, with their vast capital and professional research teams, are able to fully leverage insider information to achieve massive profits. They can maximize returns through diversification, risk hedging, and sophisticated trading strategies. However, even if retail forex traders have access to the same insider information, they find it difficult to reap the same benefits as these large institutions. Their capital size limits their operational scope and profit potential, rendering insider information less valuable in their hands.
Therefore, retail forex traders need to accept the fact that capital size is a significant factor in the forex market. They cannot rely solely on insider information to achieve profits. Instead, they should focus on improving their trading skills, learning market analysis methods, and cultivating sound risk management capabilities. Through long-term accumulation and a sound trading strategy, they may be able to find a profitable path in the forex market, rather than relying on insider information that they cannot fully utilize.

In the two-way trading ecosystem of the foreign exchange market, a long-standing and insurmountable reality is that very few retail traders with small capital can achieve the goal of "making big money"—"making big money" here refers to both the absolute returns that can change one's life and the long-term compounding that can lead to financial freedom.

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This limitation does not stem from the market's deliberate rejection of small capital, but rather is determined by the size of their capital, their skills, their mental characteristics, and their cognitive biases about the nature of the market. These factors intertwine to form an insurmountable barrier to profitability.
From the most fundamental perspective of capital size, retail traders with small capital have too little initial capital, which fundamentally limits their potential for "making big money." Even with the highest profit efficiency, it's difficult to break through the profit ceiling imposed by their capital base. For example, if a retail investor only has $10,000 in initial capital, even if they achieve a 10x return through precise trading or exceptional opportunities, they will only end up with $100,000. This amount of capital is far from sufficient to achieve financial freedom—it's a drop in the bucket for meeting living expenses, mitigating risks, or further expanding their investment portfolio. More importantly, the forex market isn't a place where "10x returns" can be frequently achieved. Its low volatility and low returns mean that long-term annualized returns are generally low (most experienced traders achieve annualized returns between 5% and 15%). Given this profitability, the absolute returns for small investors are even more limited. Even assuming the market readily offers insider information (such as central bank policy adjustments and major data releases) to retail traders with small capital, it would be difficult for small investors to generate excess returns from this information. Firstly, the size of their positions cannot materially influence exchange rate trends. Even if they accurately predict market trends, they can only earn small returns commensurate with their positions. Secondly, market fluctuations associated with insider information often require rapid entry and exit, and small traders may face high transaction costs (such as spreads and fees) or slippage due to insufficient liquidity, ultimately significantly reducing their actual returns and further highlighting the limitations of their capital size.
In addition to capital limitations, the common skills shortcomings and poor trading habits of retail traders exacerbate the difficulty of making significant profits. Most retail traders with small capital lack a systematic learning process before entering the market. They neither master basic technical analysis (such as candlestick patterns and the application of trend indicators) nor fundamental analysis (such as interpreting macroeconomic data and assessing central bank monetary policy), nor do they establish a scientific risk control system. Instead, they rely on "subjective intuition" to determine entry points: seeing a significant price increase, they subjectively judge "it's time to fall" and blindly short; seeing a sharp price drop, they assume "it's time to rise" and arbitrarily go long. This "illogical entry" model essentially equates trading with "guessing the difference," leaving profits entirely to luck and losses the norm. More seriously, retail traders with small capital generally lack patience. They cannot tolerate the lengthy cycles of long-term trading and prefer frequent short-term trading, attempting to achieve quick profits by "accumulating small gains." However, they ignore the higher transaction costs, greater random risk, and the emotional drain that comes with frequent trading. Ultimately, most retail traders deplete their capital in a cycle of "entering the market based on intuition, profiting through luck, and losing out of habit." This makes it difficult to make significant profits and easily leads to persistent losses.
Deviations in mentality are a core obstacle for retail traders with small capital, particularly the "get-rich-quick" fantasy and a gambling-like mindset. Influenced by the myth of short-term, lucrative profits, most retail traders enter the market with the expectation of "rapidly accumulating wealth," viewing forex trading as a "shortcut" to a higher social class. This mindset leads them to ignore risk and blindly pursue high returns: they use high leverage to maximize profits and frequently repeat trades to seize "every opportunity." Investors often use short-term trading to "recover their losses" and increase their positions against the trend when losing money. This trading model completely deviates from the rational nature of investment and degenerates into pure gambling—and the inevitable result of gambling is often "overnight bankruptcy" rather than "overnight wealth." For example, a retail investor might invest $10,000 in a currency pair with high leverage of 1:100. If the market fluctuates by just 1% against expectations, their position will be liquidated, wiping out all previous profits and even their principal. This "gambling mentality" is essentially a manifestation of human greed and the desire for luck: retail investors are driven by a desire for quick returns that far exceed the market average, while also believing that "risk won't befall them." Ultimately, this imbalance leads to irrational decisions, further deviating from their goal of "making big money."
More importantly, the motivations behind some small retail traders entering the market are inherently flawed. They may be driven to desperation by debt pressure, financial difficulties, and other factors, viewing the forex market as a "last resort," hoping to escape their predicament by trading and making a fortune. This desperate mentality has left traders psychologically unbalanced: they are unable to objectively assess their own capabilities and market risks, nor can they maintain a rational trading rhythm. Instead, they are prone to extreme actions in a rush for quick results, such as investing their entire fortunes in trading or borrowing high-interest loans to replenish their principal. More importantly, these retail investors often fail to understand the core truth of the foreign exchange market: to maintain economic stability and trade competitiveness, central banks around the world continuously monitor and guide exchange rates through open market operations, interest rate adjustments, and foreign exchange intervention, ensuring that exchange rates remain within a relatively stable range and avoiding drastic fluctuations. This means that the foreign exchange market is characterized by low volatility and stable trends, with the probability of large, unilateral market fluctuations being extremely low, making it an ideal environment for "small-scale, big-buck" strategies. Instead, the forex market is essentially about "big-buck, small-buck" strategies—relying on large capital, long-term cyclical strategies, and robust risk control to achieve reasonable returns through the effects of compound interest, rather than relying on small capital to profit from short-term, large fluctuations. When retail traders with small capital engage in trading with a desperate mentality and a misunderstanding of the market's nature, the end result is often worse than good. Not only can they fail to make big money, but they may even exacerbate their financial crisis.
From the perspective of market principles and professional trading, to overcome the limitations of "difficulty in making big money," retail traders with small capital need to fundamentally change their cognition, abilities, and mindset. First, they must face the reality of their capital size and abandon the fantasy of "getting rich overnight." Instead, they must adjust their goals to "steady accumulation and long-term compounding," gradually expanding their capital through sustained profits. Second, they must systematically study trading knowledge, master basic analytical methods and risk control techniques, abandon the habit of "flying by the seat of your pants," and establish a scientific trading system. Finally, they must adjust their mindset, shed their gambling mentality, approach trading with a rational and patient attitude, and view forex trading as a long-term investment rather than a short-term speculative game. Only in this way can retail traders with small capital gradually escape the dilemma of losses. While they may not achieve the goal of "making a fortune," they can at least maintain a stable existence in the market and lay the foundation for subsequent profit accumulation.
In summary, the difficulty for retail traders with small capital to make large profits in forex trading stems from a combination of limited capital, limited skills and habits, biased mindsets, and cognitive misconceptions. To overcome these limitations, retail investors need to re-understand the nature of the market, improve their skills and habits, and abandon irrational fantasies and gambling mentality. Only in this way can they gradually achieve the transition from "survival" to "profit" in the forex market. While they may not necessarily achieve huge profits, they can avoid greater risks and losses.

In forex trading, traders often develop a strong addiction to investing and trading when they first enter the market. This addiction often stems from a combination of psychological factors.

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On the one hand, when traders first enter the forex market, they may view investment trading as a gamble, hoping to reap high returns through a single, high-risk trade. This gambling mentality not only easily leads to addiction but also traps traders in a vicious cycle of frequent trading, attempting to prove their luck and ability through constant trading. On the other hand, many novice traders, when just learning, starting out, and engaging in trading, are often captivated by the fantasy of getting rich quick. Their understanding of the market is still superficial, yet they imagine seizing numerous opportunities once the market opens and rapidly accumulating wealth. This impulsive pursuit of quick success leads to an almost obsessive desire for trading, constantly hoping Monday will arrive so they can enter the market as soon as possible.
These situations often occur in the early stages of forex trading, and are natural. However, as traders gain trading experience and gain a deeper understanding of the market, their mindset will significantly change. As they progress from novice to experienced, seasoned, and even expert traders, they no longer view investment trading as gambling, nor do they dream of getting rich overnight. They gradually realize that forex investment requires long-term planning and steady operation. They begin to abandon short-term speculation and instead adopt a long-term, light-weight investment strategy. This strategy not only reduces trading risk but also allows them to more calmly navigate market fluctuations. As the novelty wears off and their awe of the market grows, their addiction to investment trading gradually diminishes.
There's a fine line between investment trading and gambling, and a shift in mindset often takes only a moment. As novice traders grow, they need to gradually adjust their mindset, shifting from short-term speculation to long-term, steady investment. This shift takes not only time but also a deep understanding of the market and rigorous self-discipline. Only when traders truly view investment trading as a long-term means of wealth accumulation, rather than a gambling tool, can they achieve sustainable growth in the forex market and ultimately break their addiction.

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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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