Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management

In foreign exchange investment and trading practices, the choice of position management strategy is directly related to the safety and sustainability of investment activities.

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Some foreign exchange short-term investors have cognitive biases about the light position strategy, believing that it reduces the efficiency of capital use and fails to fully tap the potential returns of the market; some investors tend to trade with heavy positions, trying to achieve rapid growth of funds through short-term high returns, and adopt the operation mode of profit withdrawal and principal reinvestment. ​
From the perspective of professional investment risk management, the light position strategy is a necessary measure for long-term investors to ensure the safety of funds. Although heavy position operations may make periodic profits in short-term and ultra-short-term trading scenarios, and there are cases of light position losses and heavy position profits in the market, this cannot change the high-risk nature of heavy position trading. Industry research shows that the probability of relying on short-term trading to achieve long-term stable profits is low, and it is difficult to form a sustainable investment model. ​
For non-short-term and high-frequency ultra-short-term traders, light positions are a key strategy to avoid systemic risks. The high leverage characteristics of the foreign exchange market and the uncertainty of price fluctuations determine that a single major loss may cause the account funds to return to zero, making investors lose the qualification for subsequent transactions. Therefore, advocating light-position trading does not restrict investors from obtaining returns, but rather building a stable profit model by reasonably controlling risk exposure. The foreign exchange market exists for a long time, and investors should focus on long-term returns and avoid taking excessive risks for short-term interests. ​
It should be clear that the light-position strategy emphasizes dynamic and flexible position management. When investors judge that the market trend has continuity and the position profit has formed a safety margin based on fundamental and technical analysis, they can increase their positions moderately under the premise of strictly controlling risks. Light position is not only an operating principle, but also a risk management thinking throughout the entire transaction process. Its implementation needs to be combined with specific trading models. In the short-term trading model with high winning rate and low allocation rate, moderate heavy position can be regarded as an optimization strategy, but it must be based on a sound risk assessment and control system. ​
For foreign exchange investors, starting with light position, refusing leverage operation, and gradually increasing floating position after achieving profit is an important beginning to building a scientific trading system. This strategy not only reflects the risk awareness of investors, but also is the core element of trading technology. However, most investors fail to pay attention to the importance of light positions in the early stage of trading, and adopt aggressive position management strategies, which ultimately makes it difficult to achieve long-term stable profits in the market. This phenomenon is worth deep consideration and reference for investors.

In the world of foreign exchange investment and trading, the difference between success and failure often begins with cognition and ends with action.

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For successful traders, the basic trading method may not be complicated, but to achieve a huge increase in wealth, it requires overcoming countless market tests, which is by no means a one-day job. This is not only a test of trading technology, but also a comprehensive challenge to personal endurance, wisdom and pattern. ​
On the other hand, although failed traders also realize the importance of trading methods, they have never been able to convert them into sustained and stable returns, and it is even more difficult to develop trading into a lifelong career. They lose their way in frequent trading and ignore the deeper logic and laws behind trading. ​
The growth path of successful traders is a practice of continuous inward exploration. They examine themselves in every transaction, temper their minds in the ups and downs of the market, and achieve the sublimation of investment through continuous self-innovation. This inward-looking attitude allows them to stay awake in a complex market environment and continuously optimize their trading strategies. ​
However, those failed traders always look outward, blindly follow market hotspots and other people's strategies, and miss the opportunity to improve themselves in busy transactions. Trading behaviors that lack reflection and summary are destined to be difficult to bring substantial breakthroughs, and can only exit the market in the end.

The implementation of long-term strategies for foreign exchange investment transactions requires accurate grasp of key market nodes and risk control points.

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For long-term foreign exchange traders, the floating loss position increase operation must be strictly limited to the historical bottom or top area of ​​the market, and the use of leverage must be resolutely eliminated. The subsequent position increase process can only be started after the position generates floating profits. ​
In the upward trend of the market, long-term investors should start the position building process in the historical bottom area, and build long-term investment positions by accumulating positions under floating loss status. If it can be combined with the positive pyramid position layout strategy, that is, increasing the position building strength in the early stage, and gradually reducing the scale of position increase as the price rises in the later stage, it will significantly optimize the position cost structure and enhance the risk resistance of the investment portfolio in long-term market fluctuations. ​
When the market enters a downward trend, investors need to establish short positions in the historical top area and increase positions in an orderly manner under floating loss status until floating profits are achieved. Adopting the inverted pyramid position management method, that is, gradually reducing the number of positions added as the price falls, will help further reduce the position cost and enhance the long-term effectiveness of the investment strategy. ​
It should be made clear that the above long-term investment strategy is highly market-specific and is only applicable to long-term investment in foreign exchange currencies, not to short-term trading, futures and stock markets. The reason is that the foreign exchange market has a unique price formation mechanism: the monetary policies of central banks of various countries, such as continuous interest rate hikes or cuts, provide macro-guidance for the price trend of foreign exchange currencies; and the continuous intervention of central banks in currency prices defines the reasonable valuation range of currencies. These characteristics constitute the core basis of long-term foreign exchange investment strategies, making it difficult to achieve the expected effect in other financial market environments.

In foreign exchange investment transactions, risk control, risk reduction and acceptance of reasonable risks do not necessarily have to be achieved through stop-loss operations. Investors should not be misled by brokers' education and propaganda on stop-loss.

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The foreign exchange investment trading market is an over-the-counter transaction, which is difficult to regulate. Therefore, many countries around the world are restricting foreign exchange investment transactions. It is particularly noteworthy that brokers of foreign exchange investment transactions are the counterparties of retail investors. The losses of retail investors are often converted into profits for brokers, and the liquidation of retail investors is the source of income for brokers. Therefore, the concepts of short-term and stop loss emphasized in many free foreign exchange education and training are either direct brainwashing methods of brokers or indirect brainwashing by other education and training institutions for brokers. In short, if you don't do short-term trading, you don't need to stop loss, and if you don't do short-term trading, you won't be harvested. It is difficult to win in short-term trading, while long-term investment will basically not lose money. ​
Foreign exchange short-term traders need to stay sober, control risks, reduce risks and accept reasonable risks, which do not necessarily have to be achieved through stop loss operations. If the entry position is reasonable, even if there is a floating loss, it is not necessary to close the position quickly, and you can wait. In a high probability, the floating loss will not eventually become an actual loss, so why rush to stop loss? ​
Foreign exchange long-term investors also need to stay sober, control risks, reduce risks and accept reasonable risks, which do not necessarily have to be achieved through stop loss operations. If the entry position of long-term investment is relatively reasonable, even if there is a floating loss, it is not necessarily necessary to close the position immediately. You can deal with it by reducing your position or not adding more positions. In most cases, floating losses will not eventually become actual losses, so why rush to stop losses?

The importance of the carry investor position report in foreign exchange investment transactions.

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Characteristics of carry investment: carry investment refers to the operation of currency pairs with large interest rate differentials. Buying this currency pair can obtain a higher overnight positive return, while selling this currency pair has a negative overnight return, which means that money will be deducted from your account every day. ​
Analysis of the position report: Foreign exchange investment traders can analyze the trading positions in the market by studying the carry investor position report. Long-term investment usually buys currency pairs and holds them for a long time. Such investors are mostly large capital investors, and there is a high probability that they do not use leverage or only use low leverage in transactions. Short-term trading generally involves selling currency pairs and holding them for a short period of time. This may be more likely to be participated by small-capital traders, and there is a high probability that leverage is used during the transaction, and the leverage ratio may not be low.

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+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou