Forex multi account manager | Use your trading account operating, investing, trading | Assist in self management of family office investment
In the field of investment in the foreign exchange market, a common problem is that investors often find it difficult to accurately identify the weak links in their own transactions.
Even if others give advice, there may be a situation where it is not adopted. At present, the vast majority of foreign exchange transactions are operated independently by individuals, which means that personal shortcomings are difficult to be detected by others. Even if someone intends to provide assistance, it is difficult to give practical and effective support. In essence, foreign exchange trading is a process of self-reflection and improvement, and the role of external assistance is relatively limited. The higher the degree of freedom in trading, the stronger the sense of isolation felt by investors. If investors appreciate this freedom, they must learn to endure loneliness. As time goes by, investors may gradually adapt to and even begin to enjoy this state of loneliness. At first, investors may be deeply troubled by the lack of communication. But as time passes, even if someone wants to communicate with investors, investors may no longer have the willingness to communicate. Once upon a time, investors may have been eager to communicate with senior people in foreign exchange trading, but they may not be willing. The most ideal situation is that when senior traders are willing to communicate and investors also have the same desire for communication, the two sides can reach a consensus, but this largely depends on accidental opportunities.
If ancient strategists transform into modern investors, they may achieve success more easily.
In ancient times, strategists were generally difficult to become the supreme leader, mainly because they lacked sufficient capital and were unable to bear corresponding risks. Although strategists have rich wisdom and strategies, they are lacking in courage. Although they have complete plans, they lack specific executors and have insufficient decisiveness. They are often trapped in a relatively narrow space of self-feedback. Once strategists take power in person, they tend to become indecisive. The decisions made in the end are usually forced and not the optimal decision-making scheme. When they return to the role of advisor, they can fully display their talents and put forward many excellent strategies. Ancient strategists cannot be compared with modern investors because the success of ancient strategists needs to rely on a large number of people, while modern investors can independently manage billions or even tens of billions of funds. If ancient strategists transform into modern investors, they may achieve success more easily because they do not need to rely on others. With their own strength alone, they can manage huge amounts of funds and do not need to rely on the strength of others in the investment transaction process.
In the field of foreign exchange investment, mental freedom and emotional stability are of crucial significance.
Investors should not develop panic or adopt retreating behaviors due to short-term book losses, nor should they prematurely give up long-held positions just because of temporary profits, thus avoiding missing out on richer profit opportunities. After hundreds of thousands of years of evolution, the human brain has an instinctive reaction of chasing benefits and avoiding risks. However, investment trading, as a relatively new activity, has only a history of about 200 years. Foreign exchange trading has only gradually emerged in the past half century and is still relatively unfamiliar to most people.
If investment trading is compared to a ship going upstream or a challenge of facing death, then this means that the instinctive reaction of seeking advantages and avoiding disadvantages may lead to failure in trading. In the trading process, what we pursue is calmness and objectivity towards gains and losses, rather than the shrewd calculation shown in social life.
True investment trading wisdom comes from personal self-awakening and self-improvement, which cannot be obtained through the teaching of others. Even the closest family members can hardly impart this wisdom. It requires personal self-discovery and personal practice. If they have no willingness to learn, we cannot force them.
Rather than spending a lot of time and energy trying to change family members, it is better to focus on one's own career and create a better future for them by accumulating wealth. Don't be misled by the view that imparting skills is more important than leaving wealth. In fact, providing material security for family members through making money is often more effective than trying to teach them skills that are difficult to master.
In the currency trading market, there is usually no phenomenon of small-scale investors stealing the strategies of large-scale investors (“small artisans steal and large artisans plunder”). Even if similar situations occur, they are often extremely covert and unknown to the public.
The core essence of currency trading lies in the fact that there is not much mystery on the surface. Whether it is a long-term investment strategy or short-term trading skills, the core principles are consistent: in an upward market trend, long-term investors will make a purchase when the price pulls back, while short-term traders will buy when the price breaks through; in a downward trend, long-term investors will choose to sell when the price pulls back, and short-term traders will sell when the price breaks through.
For small currency traders, in the stage of limited capital, trading skills are their advantage. When capital accumulation reaches a certain level, a good mindset and superb skills will become their advantage. In essence, currency trading is a field that relies on the scale of funds to achieve success. Without a sufficient capital base, even if trading skills are extremely exquisite and the ability to control one's mindset is outstanding, at most it can only meet basic living needs. It is extremely difficult to achieve remarkable achievements in this field.
Large currency investors, such as investment banks, funds, and sovereign wealth funds, have a huge scale of funds, which in itself is a huge advantage. They even have the ability to influence market prices, and this field may be forever out of reach for small traders.
In the field of currency trading, the situation of small traders stealing the strategies of large investors basically does not exist (“small artisans steal and large artisans plunder”). Theoretically, if there is a situation of “small artisans steal and large artisans plunder”, it may be that small traders have mastered some skills of large investors and continuously replicated successful experiences, thus creating performance that surpasses investment banks. However, in reality, this situation is almost impossible to occur. Because all trading skills are public, only insider information is confidential, and small traders can never obtain secret foreign exchange information like national secrets.
For families of full-time foreign exchange traders, achieving financial freedom will become extremely difficult if there is continuous excessive consumption. If the capital scale is limited and trading skills are still immature, young people are not recommended to engage in full-time foreign exchange trading.
From a professional perspective, although the family's financial situation is supported by the husband's stable income, reasonable planning of the family budget and saving expenses are always the key links to alleviate economic pressure. Even if the wife does not directly participate in work, by effectively managing family finances, she can also contribute significant value to the family's financial health and work with her husband to maintain the stability of the family economy. On the contrary, if the wife neither participates in work nor family financial management but only asks her husband to increase income to meet her own excessive consumption, this will undoubtedly bring additional pressure to the family economy. Especially when the husband, as a foreign exchange trader, suffers losses and a reduction in funds due to market fluctuations and communicates frankly with his wife, if the wife continues to squander recklessly, the family must re-examine and adjust its financial strategy. After all, in order to achieve long-term financial security goals and make stable investments, reasonable capital reserves are an indispensable element. If continuous excessive consumption continues, achieving financial freedom will become extremely difficult.
In addition, for novice foreign exchange traders who have just entered society and started to form families, considering their limited capital scale and immature trading skills, it is not recommended that they engage in full-time foreign exchange trading. Foreign exchange investment is usually regarded as a field with relatively low risk and relatively low return. Generally, a large capital scale is required to achieve significant returns. Relying on short-term trading to maintain family life in the short term is not feasible and extremely risky. If even basic family expenses are difficult to guarantee, then family conflicts will inevitably appear. This is a sincere suggestion from a senior investor with nearly twenty years of trading experience.
In the foreign exchange market, participants can mainly be divided into two categories: short-term traders and long-term investors.
Among the group of participants in the foreign exchange market, about 90% of individuals face a loss situation. This is mainly due to their incorrect perception of foreign exchange trading as a means to quickly accumulate wealth rather than a profession that can be engaged in for a long time. Foreign exchange trading and foreign exchange investment are exactly two different conceptual categories: trading usually involves short-term operating behaviors, while investment focuses on obtaining long-term returns.
In the foreign exchange market, participants can mainly be divided into two categories: traders and investors. Traders are generally short-term operating entities that are committed to pursuing short-term interests, while investors are long-term operating entities that focus on pursuing long-term returns. 90% of the losing entities are often short-term traders.
If the investment time span is long enough, then the possibility of incurring losses will be reduced. Because foreign exchange investment is usually regarded as an investment method with relatively low risk and relatively small returns. When investing in mainstream currencies, if no leverage is used, even if facing losses, as long as one holds on, theoretically there will be no situation of forced liquidation. The foreign exchange market follows the principle of mean reversion. As long as one has enough patience to hold on, it is possible to achieve profits in the end, although this may require a relatively long time cost.
The manipulation phenomenon in the foreign exchange market is an undeniable reality.
Some countries intervene in the market by regularly announcing the central parity rate of foreign exchange. Their goal is to maintain their domestic currency within the expected stable range. Although there is indeed a probability of manipulation in the foreign exchange market, it is also an investment field with relatively low risk and relatively limited returns. As long as investors do not use leverage, the risks they face can be controlled in practical situations.
Those views that consider foreign exchange trading extremely risky usually come from inexperienced novice investors. They often blindly use leverage without fully understanding the market, eventually resulting in losses of funds and having to withdraw from the market. The reason why novice investors abuse leverage is that their funds are relatively limited, but they are eager to obtain high returns through quick means. This mentality of seeking instant wealth prompts them to take risks by using leverage, but the results often fail to meet expectations.
In fact, for investors with small amounts of capital, achieving long-term survival in the foreign exchange market is extremely challenging. If investors can persist in the foreign exchange market for a long enough time until they have a deep understanding of foreign exchange investment and master all the experience and knowledge, then even those who are least good at investing may have the possibility of obtaining returns. However, this process may be very long, and many people may not be able to persevere until the end due to lack of patience and perseverance.
Foreign exchange investment trading is a challenging field. In essence, it is a profound journey of personal inner exploration.
During this process, it is not dominated by the experience or opinions of others. Investors need to face and overcome numerous obstacles independently by relying on their own abilities.
In the process of foreign exchange investment trading, have you discovered some generally applicable guidelines? Those investors who seem not extremely shrewd on the surface often can reap profits in the foreign exchange investment trading market. The "stupidity" mentioned here does not mean a lack of intelligence. Instead, it refers to a state of tranquility and peace in mentality. Specifically, it is to follow the most basic trading principles and entrust other uncertain aspects to the arrangement of fate.
In foreign exchange investment trading, frequent short-term trading should be avoided. Because doing so may limit investors' trading horizons and may not bring expected returns. Before investors can easily obtain profits from the foreign exchange investment trading market, they should hold a sense of awe for this market. And when investors can already profit freely from the foreign exchange investment trading market, they should pay more attention to the insight into human nature and maintain a sense of awe.
In the foreign exchange market, it is an objective fact that the threshold for opening a trading account is relatively low, but making a profit from it is extremely challenging.
Foreign exchange trading seems relatively simple on the surface, but in fact it contains many complex elements, and not all investors are suitable for participating in it. Although this field seemingly does not have high requirements for professional knowledge and common sense, to achieve success in this field, one must have long-term investment experience and profound comprehensive knowledge accumulation, which is obviously not a goal that can be achieved in the short term.
From a superficial observation, opening a trading account seems to not require a large amount of capital investment. However, in the actual trading process, if the capital amount is insufficient, the probability of winning is almost zero. This is actually an obvious trap. Many novice foreign exchange investment traders often fail to notice this at the initial stage and will only gradually realize it after accumulating certain experience. The foreign exchange market does indeed have the possibility of enabling foreign exchange investment traders to achieve wealth growth, but at the same time it may also cause them to fall into a state of poverty. In this market, there are countless cases. Some foreign exchange investment traders can succeed, while others may encounter failure. All of this depends on various factors such as personal skills, luck, and timing.
In order to achieve success in the foreign exchange investment trading market, foreign exchange investment traders must overcome many obstacles. Usually, when foreign exchange investment traders achieve success, the outside world often only sees their glamorous side and ignores the countless setbacks they have experienced behind. If an investor is a well-funded hedge fund or an experienced foreign exchange trader, then foreign exchange trading does indeed have the possibility of making them wealthy. However, for most ordinary retail traders, foreign exchange investment trading is not a convenient path to wealth. On the contrary, it may be a difficult road full of risks and possible significant losses.
The duality of the foreign exchange investment trading market: risk and challenge, profit and loss, success and failure.
In the foreign exchange market, its low-threshold characteristic makes many novice investors have the expectation of quickly obtaining high returns without fully understanding the market. However, from a practical operation perspective, this expectation is extremely unrealistic. Foreign exchange trading generally adopts a high-leverage model, which easily leads to misjudgments of risks by investors. The mainstream currency pairs in the market are often regarded as representatives of the foreign exchange market, thus creating an illusion of easy profitability. However, in fact, these currency pairs are often manipulated by large institutions. Ordinary investors usually become passive participants in the market without knowing it, so it is difficult to achieve profit goals.
At the same time, for those emerging currencies with high interest rates, given their relatively high interest rate levels, long-term holding may bring significant interest income. If the growth factor of positive profits is taken into account, the potential returns of these currencies are actually quite considerable, but this is often ignored by most ordinary investors. Generally speaking, only investors with relatively large amounts of capital can obtain benefits from this investment strategy.
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