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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, advertising claims by forex investment account custodian teams often attract attention. While claims of a 20% annualized return rate are consistent with market common sense, claims of a 20% monthly return rate clearly exceed reasonable limits. Such exaggerated claims not only violate market principles but also lack a realistic basis.

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In forex investment, claims of a 20% monthly return rate are clearly unrealistic. If a forex trader can achieve monthly profits of 20% or even multiples of that, they typically won't frequently post information or conduct marketing campaigns online. Investors with truly impressive profitability tend to keep a low profile. They prefer to partner with friends and family, pooling their capital to achieve financial freedom through stable, long-term investments. This model not only protects personal privacy but also avoids unnecessary risk. For example, by partnering with friends and family, investors can accumulate wealth within one to two years and distribute the proceeds to them without having to share profits with outsiders.
From a market perspective, the world's top fund managers typically achieve an annualized return of 20%, which is considered exceptional. For example, even investment luminaries like Warren Buffett only achieve long-term annualized returns of around 20%. Therefore, any claims of higher returns should be viewed with caution. Despite the high liquidity and volatility of the forex market, achieving such high monthly returns is virtually impossible.
Forex investment account custodian teams should base their advertising on facts and reality when recruiting clients. False advertising claims not only fail to withstand the test of reality but also fail to withstand common sense. For example, if a team claims to achieve a 20% monthly return but cannot provide specific trading strategies, risk control measures, or historical performance, the claim is likely unreliable. On the contrary, such exaggerated claims may backfire, causing potential clients to doubt the team's credibility.
Forex traders should exercise caution when selecting a custodian team. Here are some practical tips:
1. Pay attention to historical performance: Request the custodian team to provide a detailed historical track record, including trading strategies, risk control measures, and actual returns.
2. Understand the team's background: Research the custodian team's background and reputation, and choose one with a good reputation and professional qualifications. 3. Expect reasonable returns: Maintain realistic return expectations and avoid being misled by overly high yield claims. A 20% annualized return is already a very high goal, while a 20% monthly return is almost impossible to achieve.
4. Risk Assessment: Understand the risks of investing and ensure you can withstand potential losses. Forex investing carries a high risk, and any promotional information should clearly state this.
In two-way forex trading, custodian team advertising should be based on facts and reality, avoiding exaggeration. While a 20% annualized return is reasonable, a 20% monthly return is clearly beyond reasonable range. Investors should exercise caution when selecting a custodian team, focusing on historical performance, team background, and risk assessment to avoid being misled by false advertising. Through reasonable expectations and careful selection, investors can achieve stable returns in the forex market.

In the two-way trading mechanism of the forex market, a seemingly paradoxical yet common phenomenon exists: the more time and effort some investors invest, the higher their probability of ultimate loss.

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Digging deeper, the core issue lies in the fact that many investors mistakenly equate "high-frequency trading" with "professional effort" and seriously underestimate the rigorous comprehensive skills required of short-term trading, thus falling into a vicious cycle of irrational trading.
Short-term trading: An underestimated skill threshold. Short-term forex trading (typically referring to trading with a holding period of several minutes to several hours) is more than simply "buy low, sell high"; it places a dual test on a trader's capabilities. On the one hand, traders must possess the technical ability to accurately judge short-term price trends. They must be proficient in using tools like candlestick patterns, technical indicators, and volume fluctuations to capture trading signals. They must also have a keen understanding of the short-term impact of market liquidity, capital flows, and breaking news. This requires long-term market experience and a systematic foundation in technical analysis, and cannot be mastered through short-term learning.
On the other hand, a more crucial test lies in the trader's psychological state, a factor often overlooked by most investors, yet crucial for determining the success or failure of short-term trading. Forex market prices fluctuate rapidly, and every rise or fall directly impacts the balance of account funds. Therefore, traders must maintain a calm and rational state of mind: avoid blindly chasing profits and becoming overly greedy, and avoid rushing to recover losses and frequently holding onto positions when facing losses. This mentality is inherently anti-human. Cognitive biases like loss aversion (the pain of losses far outweighs the joy of profits), confirmation bias (focusing solely on information that supports one's own judgment), and anchoring (overreliance on a specific price point), all inherent in human nature, are amplified in short-term trading, leading traders to make decisions that defy market principles.
According to actual market data, over 80% of individual investors, unable to overcome these biases, fall into a vicious cycle of "frequent order placement, stop-loss exits, and more follow-up orders" in short-term trading, ultimately leading to persistent losses. This isn't a case of "lack of effort," but rather "efforts in the wrong direction"—using tactical diligence (frequent market monitoring and high-frequency trading) to mask strategic deficiencies (a lack of awareness of one's own capabilities and a reverence for trading discipline).
Market monitoring: The catalyst for irrational trading. Frequent market monitoring is a habit of most short-term traders, yet it's also a direct trigger for irrational behavior. When traders closely monitor the market for extended periods, every tiny price fluctuation can be irritating, disrupting their planned trading plans. A slight price increase can lead to a temptation to buy, while a slight price drop can lead to panic selling. This "emotional" trading completely detaches from technical analysis and market logic. It's essentially "being led by market trends" rather than actively controlling the trading rhythm.
In conversations with numerous investors who have lost money, I've found that nearly all high-frequency traders share a common response: "I know frequent trading is bad, but I just can't help it." This inability to stop is the result of the combined psychological pressure of market watching and cognitive biases. When attention is completely focused on short-term fluctuations, traders unconsciously amplify their fear of missing out and their desire for quick profits, leading to impulsive decisions that violate trading discipline. Even experienced traders can become mentally fatigued and misjudge after prolonged market watching, let alone the average investor who lacks systematic training.
In fact, the core principle of forex trading is "capturing trend opportunities," not "profiting from every short-term fluctuation." Short-term price trends are heavily influenced by random factors, and even the most professional traders can't accurately predict every small rise or fall. Instead, looking beyond short-term fluctuations and analyzing market sentiment, trend direction, and key support and resistance levels from a longer-term perspective (such as the daily and 4-hour charts) can help you more clearly identify effective trading opportunities.
Rational Trading Strategy: Shifting from "Watching the Market" to "Planning." Breaking the vicious cycle of "the harder you work, the more you lose" requires a shift in trading style—from "passive watching" to "active planning," replacing emotional trading with a scientific trading system. This can be achieved through the following three key approaches:
1. Establish a closed-loop trading process: "Analysis - Place Orders - Risk Control." Daily market analysis is done during fixed time periods (such as before the market opens or after the market closes), focusing on three key areas: first, the long-term impact of macroeconomic factors (such as monetary policies of major economies and geopolitical risks) on currency pairs; second, technical analysis (trend direction, key points, and volume fluctuations) to determine potential entry, take-profit, and stop-loss positions; and third, market sentiment (assessing the balance of long and short positions through trading volume, position changes, and market sentiment).
After completing this analysis, directly place pending orders (such as limit orders and stop-loss orders) to lock in entry points, take-profit points (generally recommending a risk-reward ratio of no less than 1:2), and stop-loss points (a single loss should not exceed 1%-2% of your account funds). This eliminates the need to monitor the market in real time. This prevents short-term fluctuations from interfering with decision-making while ensuring that trading adheres to pre-set plans and effectively controls risk.
2. Reduce trading frequency and focus on high-certainty opportunities. Most investors' losses aren't due to "missing opportunities" but rather to "taking advantage of too many low-quality opportunities." The foreign exchange market experiences countless daily fluctuations, but truly high-certainty trading opportunities are rare. Traders should learn to "wait patiently," only taking action when technical, fundamental, and emotional factors converge, and resolutely abandoning ambiguous "opportunities." Reducing the number of trades actually increases your win rate and reduces the fees and stop-loss risks associated with frequent trading.
3. Take a rational approach to full-time trading and clearly define your capabilities and financial limits. Many investors, attracted by the "freedom" of full-time trading, rashly abandon their primary careers to pursue full-time trading without sufficient accumulated experience. This is often an extremely risky choice. Full-time trading not only requires technical skills and mental fortitude far exceeding those of part-time trading, but also requires a sufficient "risk reserve" (generally recommended to be at least 6-12 months of living expenses). There is no "guaranteed profit" in the forex market, and even the most professional traders experience periods of losses. Trading with a "survival fund" can easily lead to extreme decisions due to psychological pressure if losses persist.
For most investors, a more rational choice is to treat forex trading as "part of your asset allocation" rather than "the sole source of income." While maintaining stability in their primary business, they can use their spare cash to gradually accumulate trading experience and refine their trading system. Once their skills and capital have reached maturity, they can consider transitioning to full-time trading. Respecting the market and adhering to market principles are the keys to long-term survival.
In summary, the profit logic of forex investment isn't "the harder you work, the more money you make," but rather "the more rational you are, the more money you make." Traders need to overcome the misconceptions of "short-term trading" and "frequently monitoring the market." By establishing a systematic trading system, controlling trading frequency, and clarifying their capabilities, they can gradually shift from "emotional" to "rational" trading. This is both a market requirement and a core prerequisite for long-term profitability.

In the two-way trading of forex investment, small retail forex traders must face a reality: they are almost exclusively clients of the "B" position.

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This means their trade orders are not routed to liquidity providers (LPs) via straight-through processing (STP), but rather they are placed directly against the forex broker. This trading model is common in the forex market, but often goes unnoticed by retail investors.
Although forex brokers typically won't publicly admit they operate B warehouse warrants, in practice, almost all platforms process trades internally. In other words, these platforms are essentially closed markets, with trading primarily conducted within the platform itself, rather than directly interfacing with the external market. This model allows brokers to better control trading risks and returns, but it also puts small retail traders at a disadvantage in the market.
From a market perspective, it's no coincidence that almost 100% of small retail forex traders are B warehouse clients. Since most small retail traders ultimately lose money, this model serves brokers' interests to a certain extent. Placing small retail orders in A warehouses would present brokers with numerous challenges. First, upstream investment banks or LP liquidity providers typically require brokers to provide sufficient margin, placing significant financial pressure on them. Secondly, placing orders from small retail investors in the A-Warehouse prevents brokers from profiting through stop-loss orders and margin calls. Instead, brokers must deposit substantial margin with upstream LPs, which undoubtedly increases brokerage costs and risks.
For these reasons, major global forex brokers, including some forex banks, have gradually abandoned the A-Warehouse business with large-capital clients. The reasons behind this strategic shift are multifaceted. First, large-capital clients typically have stronger profitability and larger capital structures, making margin calls virtually impossible. This means brokers cannot profit through stop-loss orders and margin calls, and can only earn limited returns through spreads and commissions. Second, large-capital clients typically adopt long-term investment strategies and trade less frequently, making it difficult for brokers to earn high commissions through high-frequency trading. Finally, large-capital clients have higher expectations for brokers' financial strength and transparency, requiring brokers to devote more resources to meeting these requirements, which undoubtedly increases operating costs.
As a result, many brokers are cautious about account opening applications from large-capital clients, or even stop actively accepting such clients. This often results in applications from large-capital clients being delayed for extended periods and ultimately abandoned. This phenomenon is not accidental; it's an inevitable choice made by brokers based on their own interests and risk management.
For small retail forex traders, understanding their role in the market is crucial. They must recognize that, in most cases, they are the broker's counterparty, not true market participants. Therefore, choosing a transparent and reputable brokerage platform is key to protecting their rights and interests. Furthermore, small retail traders should approach high-frequency trading with caution, manage their positions appropriately, and avoid excessive leverage to mitigate trading risks.
In summary, in two-way forex trading, small retail forex traders are almost inevitably clients of position B. This phenomenon is driven by brokers' comprehensive considerations of funding pressures, profit models, and risk management. Understanding these market mechanisms can help small retail traders make more informed decisions in the forex market and avoid unnecessary risk.

In the two-way forex trading system, traders are typically categorized by brokers as either A-position or B-position clients. These clients have significantly different order processing models, risk profiles, and interests with brokers. The vast majority of small, short-term traders fall into B-position clients, essentially acting as counterparties to the forex broker.

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A-position clients: A "low-risk" group with direct access to the market. The core characteristic of A-position clients is that their orders flow directly into the external market. Their transaction chain and brokerage profit model are as follows:
1. Order Processing Model: A-position client orders are directly routed to liquidity providers (LPs) through straight-through processing (STP). LPs are typically large banks, investment banks, and other institutions with deep financial resources, and are the core liquidity providers in the forex market.
2. Broker Profit Source: Brokers only charge a fixed commission and spread (the difference between the bid and ask prices) for order processing and do not share in the profits and losses of clients in Warehouse A. Their profit model is relatively simple.
3. Typical Profile of Warehouse A Clients: These clients are often highly profitable traders or those with large capital and a strong tolerance for risk, primarily focusing on long-term trading. They can achieve stable returns through their understanding of market trends or rely on sufficient capital to weather short-term market fluctuations, avoiding forced stop-loss orders due to short-term market fluctuations.
4. The Core Reason Brokers Must "Sell" Orders: Due to the long-term trading nature and strong risk tolerance of Warehouse A clients, if brokers choose to accept their orders themselves instead of passing them to external LPs, they are likely to incur significant losses due to the clients' long-term profits (i.e., "holding the orders on their hands"). From a risk management perspective, routing Warehouse A orders directly to LPs is the inevitable choice for brokers.
Warehouse B Clients: Brokers' core profit source. Clients in Warehouse B stand in stark contrast to clients in Warehouse A. Their orders are handled directly by the broker, and they are the primary contributor to the broker's profits. The specific logic is as follows:
1. Typical profile of Warehouse B clients: They are primarily small-capital, short-term traders (particularly day traders). These traders trade frequently, but due to limited capital, they have a weak risk tolerance and are unable to withstand short-term market fluctuations. They are likely to be forced to stop losses due to misjudgment or insufficient funds, resulting in long-term losses.
2. The reason brokers "self-handle orders": Due to the high probability of loss for small-capital, short-term traders, brokers who handle their orders not only avoid the risk of losses but also profit from their clients' losses—a more lucrative source of profit than simply charging fees and spreads.
3. Broker's Core Profit Structure:
Client Losses: This includes funds lost by small traders forced to stop losses due to market fluctuations, as well as funds lost due to margin calls caused by losses exceeding margin requirements.
High-Frequency Trading Fees: Short-term traders trade much more frequently than long-term traders, allowing brokers to charge higher fees and spreads through high-frequency trading.
4. The Nature of "Traders Can't Outlast Brokers": Limited by their capital and trading strategies, small short-term traders struggle to achieve sustained profits in high-frequency trading and inevitably face long-term losses. Brokers, as order takers, simply employ normal trading rules (such as margin requirements and stop-loss mechanisms) to steadily profit from client losses, giving them a clear advantage in the competitive game.
Brokers differ in their attitudes toward these two types of clients. From the perspective of profit logic and risk control, brokers have very different attitudes towards large investors (mostly Position A) and small short-term traders (mostly Position B):
The "helplessness" of large investors (Position A): Because large investors are highly resilient and rarely experience margin calls, brokers cannot profit from their stop-loss orders or margin calls. They must instead pass their orders to their limited partners, earning only a small commission. Therefore, brokers are more likely to "passively serve" these clients rather than actively attract them.
The "active attraction" of small short-term traders (Position B): These clients can generate stable and substantial profits for brokers (loss capital + high-frequency fees), making them their core customer base. Therefore, brokers actively attract small short-term traders through policies such as low account opening thresholds and high leverage.
In summary, the distinction between Position A and Position B in the forex market is essentially a differentiated management approach for different types of traders, driven by the dual goals of "risk control" and "profit maximization." Understanding this mechanism can also help traders more clearly understand their position in the market and their interests with brokers.

In two-way foreign exchange trading, short-term traders often face a higher risk of loss.

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This phenomenon has attracted the attention of many successful forex investors, who generally advise against frequent short-term trading. The core reason is that short-term market trends are often chaotic and unclear. Forex currencies experience extremely limited fluctuations in the short term, sometimes even remaining almost static for periods of time. This stasis is not an anomaly, but rather a normal market phenomenon. In contrast, short-term fluctuations are highly random and uncertain, while long-term trends are relatively clear and distinct, making long-term trading a strategic advantage.
Furthermore, short-term traders are prone to difficulties in money management. Because the profit margins for day trading with a small position are extremely limited and high returns are almost impossible to achieve, many traders tend to choose to operate with large positions in an attempt to maximize profits. However, this heavy-position strategy significantly increases trading risk. In contrast, a long-term, light-position strategy avoids the need for stop-loss orders, as the small position itself acts as a stop-loss, reducing the risk of significant losses due to market fluctuations.
For day traders, if they choose to operate with a large position, setting a stop-loss order becomes a necessary risk management measure. Otherwise, if the market moves unfavorably, traders face the serious risk of being liquidated. This risk not only leads to significant capital losses but can also negatively impact traders' psychology and future trading decisions. Therefore, proper position management and stop-loss orders are key to survival in the forex market for short-term traders.
In summary, the risk of loss faced by short-term traders in forex trading stems primarily from the uncertainty of short-term market trends, the high risk of operating with large positions, and a lack of effective risk management measures. In contrast, a long-term, light-weight position provides a more robust trading strategy, helping to reduce risk and improve trading sustainability.

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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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