Forex multi account manager | Use your trading account operating, investing, trading | Assist in self management of family office investment
In foreign exchange market transactions, investors usually show a persistent attitude when facing losses.
The reason is that losses have already become an established fact and cannot be avoided. However, when in a profitable state, investors often find it difficult to maintain sufficient patience. After all, the profit has not been fully realized and put in their pockets, giving people a feeling that it does not completely belong to them. In a state of loss, investors have a strong desire to reduce losses in their hearts. This strong desire prompts them to hold on continuously; while in a profitable state, the worry about losing existing gains is equally extremely strong, which leads them to be eager to cash in profits.
Investors often have overly high expectations for the potential high returns in foreign exchange trading. Between pursuing benefits and avoiding losses, the instinct to avoid losses is stronger. Therefore, in the face of the huge risks and potential high returns of foreign exchange trading, investors tend to overestimate the possibility of risk occurrence, which makes it difficult for them to maintain patience when in a profitable state.
Each foreign exchange trader has different sensitivities to stimuli. Some traders are relatively sensitive to market fluctuations, while others are relatively sluggish. For sensitive traders, when market fluctuations are too large, their perceptual behavior system may become sluggish, making it impossible to effectively respond to market stimuli. For those traders who are particularly sensitive to losses, the stimulus brought by losses may be too strong, making them unconsciously hold on to losing positions under the sluggish reaction of the nervous system. On the contrary, in a profitable situation, although the risk seems not large, for sensitive traders, this risk may still be too large, leading to excessive reactions of their nervous systems and thus unconsciously being eager to close positions.
Research in physiological psychology shows that there is a mutual induction relationship between extreme excitement and inhibition. Therefore, in foreign exchange trading, when traders face losses, they may suppress the avoidance reaction to losses and even enhance the reaction of seeking benefits for rebounds; while in a profitable state, they may suppress the pursuit of profits and even enhance the avoidance reaction to losses. These reactions may manifest differently in different individuals, but they are all not controlled by personal subjective will and may not even be within the scope of personal subjective consciousness.
In the field of foreign exchange investment trading, traders who pursue perfection usually ignore the uncertainty of the market and thus often linger between greed and fear.
The nature of the foreign exchange investment trading market is dynamic. Driven by human behavior, it makes it extremely difficult to predict market changes. Although there may be some regularity locally, this is only caused by behavioral inertia. From an overall perspective, the market shows random characteristics.
To deeply understand this phenomenon, one must accept the characteristics of the foreign exchange investment trading market. Otherwise, the probability of achieving success in the field of foreign exchange investment trading will be extremely small. Participants in the foreign exchange investment trading market have different views and operations on the same target, which triggers price fluctuations. This kind of fluctuation can be converted into moving averages in a quantified way. Moving averages can be applied to different time periods. In theory, countless moving averages can be set in each period. The trading system can be constructed based on a single moving average or composed of multiple moving averages. If a system with more moving averages can be free from the interference of complex relationships, it can theoretically achieve a higher winning rate, but in actual operation, it is more likely to be confused or interfered with.
The fluctuations in the foreign exchange investment trading market show irregularity in both time and space. Sometimes a moving average with a small parameter is effective, and sometimes a moving average with a large parameter is needed to play a role. The changes in the foreign exchange investment trading market are extremely complex. A specific moving average is effective at some times and ineffective at other times. Due to the limitations of human cognition, usually only a limited number of moving averages can be processed. Therefore, a foreign exchange investment trading system with less than three moving averages cannot cope with all changes, resulting in its imperfection.
Accepting imperfection, accepting uncertainty, and accepting possible floating losses are the significant marks of mature foreign exchange investment traders.
In the field of foreign exchange investment and trading, some investors, considering their limited funds, think it difficult to conduct foreign exchange value investment.
This is mainly because the process is relatively complex, time-consuming and has a high risk. In comparison, technical analysis of foreign exchange trading seems to be more simple and direct. However, it must be made clear that foreign exchange investment and trading is by no means a cash dispenser. Most foreign exchange investment traders will eventually suffer losses. Those who are overly confident that they will not lose are very likely to belong to the majority of those who lose.
Short-term trading behaviors in foreign exchange investment include observing candlestick charts, chasing market trends, trading based on news, and frequent buying and selling. Short-term traders mainly focus on foreign exchange price fluctuations and expect to make profits in the short term. Long-term foreign exchange investment trading involves in-depth understanding of the market, determining one's own ability range, finding a safety margin, and continuously learning and improving. Moreover, it is necessary to deeply analyze the fundamentals of the foreign exchange market.
By comparing long-term foreign exchange investment with short-term foreign exchange trading, we can clarify which aspects are learnable, have certainty, and remain unchanged in the long term. Short-term speculation and long-term investment are like flipping a coin. The result is either all or nothing. Short-term foreign exchange speculators continuously carry out coin-flipping operations. Each time they face brand new uncertainties, but they firmly believe that they can win in the foreign exchange investment and trading market. When long-term foreign exchange investors make coin-flipping-like decisions after being fully prepared, they will continue to research and track the foreign exchange investment and trading market and look for certain factors to support their decisions. This fully reflects a rational attitude of doing one's best and leaving the rest to fate.
Analyzing from the perspective of market liquidity and common sense of long-term foreign exchange investment, even if the foreign exchange price trend is wrongly judged, the degree of loss is usually not as serious as that of short-term speculators. Foreign exchange prices are in a sideways consolidation state most of the time, and only 5% of the time there is an obvious major trend. The key lies in choosing to seize trend opportunities or waiting patiently. Frequent foreign exchange investment trading seems simple, but in fact it is difficult to achieve success. Waiting patiently seems like doing nothing, but it may be easier to succeed. Sometimes, seeing things too simply is often due to lack of in-depth thinking.
The amount of funds is not the key factor for making profits in foreign exchange investment. What really plays a decisive role is the cognitive level of the foreign exchange investment and trading market. Entering the foreign exchange investment and trading market with a gambling mentality, the more funds there are, the faster one may lose.
Long-term foreign exchange investment is a means of making profits rather than the ultimate goal. Giving up halfway will not give one the opportunity to verify one's views. The most difficult thing is to learn to wait patiently. Sometimes seemingly restrictive suggestions, in fact, investment waiting itself is a very effective strategy.
In the field of foreign exchange investment and trading market, uncertainty is a ubiquitous state, and losses are also an unavoidable part in the trading process.
Traders need not try to predict every subtle fluctuation in the market. Instead, they should focus on formulating strategies that can adapt to the market environment and effectively manage risks. Successful foreign exchange investment traders rely on accurately identifying those opportunities with statistical advantages, that is, situations where the probability of a specific result is higher than that of other results. However, this kind of advantage is based on probability rather than certainty. Therefore, we must recognize that every transaction in the foreign exchange investment and trading market is unique, and history will not be easily repeated.
In the foreign exchange investment and trading market, there is an information asymmetry phenomenon among participants, which means that prices cannot always accurately reflect all available information. Therefore, the prices in the foreign exchange investment and trading market often contain misperceptions of market conditions. And the technical analysis system based on the analysis of foreign exchange investment and trading market prices inevitably has defects due to its dependence on these potentially distorted prices. We must accept and adapt to the imperfections in foreign exchange investment and trading.
Although extreme foreign exchange investment and trading market events are relatively rare, they do occur. We must be fully prepared for these potential events. A complete foreign exchange investment and trading system not only includes trading signals and position management strategies but also should cover the psychological factors of foreign exchange investment traders. These three aspects are all of crucial significance for successful trading.
Finally, we must accept the unpredictability of the foreign exchange investment and trading market and need not deliberately pursue a precise understanding of every market fluctuation. At the same time, we should also realize that our fear of the unknown is a natural reaction. Nevertheless, we should not let these fear factors dominate our trading decisions. Instead, we should follow rational thinking and the rules of the trading system and continuously execute our foreign exchange investment and trading strategies. In this way, we can maintain consistency and discipline in the constantly changing market environment.
In the field of foreign exchange investment and trading, the unknown market is not necessarily filled with uneasiness and fear.
Essentially, uneasiness usually stems from excessive desire for victory or defeat. This desire is based on a wrong cognitive foundation, that is, traders think they can accurately predict market trends, control the trading process and dominate their own destinies. Under normal circumstances, ordinary traders will not feel uneasy. Only those foreign exchange investment traders who think they have mastered specific knowledge and think they can surpass others will have uneasy emotions. Therefore, this mentality should be abandoned. In the foreign exchange trading market, regardless of the strength of profitability, all traders are just ordinary participants, and there is no so-called master of foreign exchange investment trading. Let go of this master mentality and admit that making money in trading is more due to luck than one's own ability. In this way, losses will be as natural as breathing and no longer seem so important.
Abandon the concept of stop loss in foreign exchange investment trading. From a professional perspective, there is no absolute wrong transaction. Only strategies that conform to market fluctuations are the key. Just like surfing, if surfers think being overturned by waves is failure, then they are doomed to be frustrated. In the face of the unknown, people usually have only two choices, either to escape or instinctively enter a fighting state. This is a human instinctive reaction and cannot be eliminated. Foreign exchange investment traders should accept and tolerate this instinct and need not feel ashamed of their own instinctive reactions.
Foreign exchange investment traders can fail in the trading process, but the operations that should be completed must be executed, regardless of how many difficulties and obstacles are encountered. In the face of such firm execution power, fear is insignificant. The unknown foreign exchange investment trading market may bring uneasiness or hope. If you repeat the same work every day and receive an expected salary, life may seem boring. The foreign exchange investment trading market may bring surprises or scares. The more you invest, the greater the magnitude of unknown surprises and scares. If traders only want surprises and are unwilling to face scares, their hearts will be difficult to calm. But if you don't pursue surprises, there is no need to take risks, and naturally there will be no scares, and the heart will return to calm. Just as it is said that those without desires are firm and do not attract dust.
In foreign exchange investment trading, the inability to maintain inner peace is often due to fear of the unknown. This is a problem that every trader must face. From a professional perspective, the best foreign exchange investment trading method is through a large number of trading practices, continuously summarizing experience and lessons, and finally forming a fixed trading model. Entry rules, exit rules, capital management rules, risk control, etc. should all be fixed. With a fixed trading model, you can respond to ever-changing changes and be aware of the rapidly changing foreign exchange investment trading market. Don't think this is rigid. In fact, this is precisely the cornerstone of stability. No matter how the foreign exchange investment trading market changes, traders should be able to take it calmly. Although it is not easy to do this, and it is even extremely difficult, because the foreign exchange investment trading market is always full of various interfering factors, whether stability can be maintained is itself a key problem. Only by being full of confidence in one's own trading model is it possible to finally succeed in foreign exchange investment trading.
In the field of foreign exchange investment and trading, experienced investors often fall into a cognitive misunderstanding, that is, subjectively believing that they already have a comprehensive grasp of the market.
However, as their understanding of the market continues to deepen, they will gradually detect their own knowledge blind spots and then deeply understand that pursuing the breadth and depth of knowledge is equally important. When investors begin to realize their own limitations, they take a crucial step on the journey towards profitability. Many investors wrongly believe that they have already understood all the mysteries of the market. In fact, their understanding of the market is still relatively shallow, and this misunderstanding often becomes the fundamental reason for losses. If investors can accurately identify their own deficiencies, they can improve themselves through efforts and solve corresponding problems. On the contrary, if they cannot even identify problems but still think they know everything, then that is the real danger. The core key of investment lies in the close combination of theory and practice. Although knowledge is the foundation, many people only know it on the surface and actually have not truly mastered it in depth. Many investors mistakenly think that they have grasped the essence of trading, but in fact, their understanding of the market and the operational level are still far from enough. If investors feel that they have mastered the essence of foreign exchange investment and trading, then they must conduct objective reflection and examine whether they truly understand the nature of foreign exchange investment and trading and most of the knowledge and experience that should be mastered.
Achieving the unity of knowledge and action in foreign exchange investment and trading is extremely challenging. An investor lacking wisdom, even if they have extremely strong action ability, will still find it difficult to succeed in the market because their wisdom level is lacking. On the other hand, even if an investor has a certain degree of wisdom, but if they are too conceited to put knowledge into practice or are hesitant, they will also be unable to succeed in the market. Only those investors who truly achieve the unity of knowledge and action can reach the top level. If investors still don't know why they are losing money, this is the most basic cognitive problem. If cognition is not completed, how can we talk about the unity of knowledge and action? Although foreign exchange investment and trading requires the accumulation of time, it is more like a part of life. Not everyone can become mature and wise in the process of growth. The correct understanding of foreign exchange investment and trading more depends on the time investors invest in thinking and summarizing in trading. Even if they have been in the field of foreign exchange investment and trading for many years, if they do not deeply think about the reasons for losses, they may not truly understand the essence of trading. If they invest time in in-depth thinking, even if it is only two or three years, they can master the core points of trading.
The secrets of making profits in foreign exchange investment and trading have been widely recorded in books, on the Internet and in various articles, but many investors' understanding standards are too low, and their understanding often only stays on the surface. When the market is relatively simple, this may not be a problem, but when the market becomes complex, the problem will be fully exposed. Investors need to raise their understanding standards and conduct in-depth and thorough research and understanding of the market. The losses of foreign exchange investment traders must have their reasons. No matter how they defend themselves, the market will strictly test them to see if they really only have a superficial understanding.
When foreign exchange investment traders suffer losses, they need to clarify the reasons for the losses. If they cannot identify them by themselves, they need to seek the help of more experienced people and let them point out the problems. Investors need to make up for their own shortcomings, but this is not easy. For example, some people cannot control their trading impulses and always tend to use high leverage. In this case, even experienced traders can hardly provide effective help. Some people may only master basic graphics in technical analysis and can handle simple graphics, but are helpless in the face of more complex graphics. This requires them to strengthen in-depth research on technical analysis. There are also some people who may have no problems in technical analysis but are deficient in trading cognition and experience. This requires them to strengthen the research on foreign exchange investment and trading knowledge and experience. There must be reasons for losses in foreign exchange investment and trading. Investors need to identify and solve these problems, otherwise they will continue to hinder investors from achieving success.
In the field of foreign exchange market investment, mastering trading skills is undoubtedly an extremely challenging task.
Investors should regard the cultivation of trading skills as a process of deep integration of learning and practice. In the initial learning stage, the task is relatively easy. It mainly lies in firmly grasping the basic cognition and theoretical system of foreign exchange trading, and at the same time being familiar with the operation process of trading software. As long as sufficient effort and time are invested, most people can master these basic skills. Even individuals who are not very familiar with foreign exchange trading can reach a proficient state through repeated practice.
However, the real challenge lies in effectively applying this knowledge to actual trading. Different from scientific experiments, foreign exchange trading is a highly practical activity that relies more on personal experience rather than theoretical verification. The accumulation of this experience requires investors to have a high degree of insight, and this insight can be cultivated through in-depth thinking and personal experience. In the trading process, the biggest obstacles are emotions and fixed thinking patterns. These deeply ingrained characteristics are extremely difficult to change, and the essence of trading is precisely to challenge people's instinctive reactions. Whether it is inferiority, arrogance, hesitation or carelessness, these personality defects may all lead to trading failures. The key to success lies in how to effectively overcome these defects.
In the process of foreign exchange trading, investors need to accurately identify and distinguish between shortcomings that can be corrected immediately, weaknesses that can be gradually adjusted, and fatal weaknesses that are difficult to change. To achieve success in foreign exchange trading, it is necessary to correct shortcomings immediately, gradually adjust weaknesses, and avoid those difficult-to-change fatal weaknesses in a reasonable way.
Learning foreign exchange trading is by no means just learning at the theoretical level. More importantly, it is practice. Learning is a continuous process of practice and verification. Only through practice can investors truly understand the essence of trading and obtain pleasure from it.
However, simply by reading books or attending lectures cannot truly master foreign exchange trading. Many traders have been looking for the so-called trading secrets, but true success does not lie in external tools, but in personal execution. Traders can learn from the experience of successful people, but they cannot rely too much on them. Everyone's road to success is unique and cannot simply copy the experience of others.
In foreign exchange trading, traders need to continuously ask questions, explore solutions, and verify the effectiveness of these solutions. Through continuously upgrading and improving the trading system and operation strategy, traders can continuously progress in trading. Foreign exchange trading is a protracted battle that requires a lot of time and energy.
Finally, traders must deeply realize that trading is not an easy road. Traders need to ask themselves, clarify how much they are willing to pay for it, and what they are really pursuing. Trading is an activity that requires long-term investment and continuous learning. It requires the courage and determination of traders. If traders can persevere, they may succeed on the road of trading. But at the same time, traders also need to be soberly aware that success is not inevitable. It requires continuous efforts and adaptation to market changes.
When facing extremely challenging situations, we usually tend to pursue certainty.
Whether in the exam-oriented education system or in daily life scenarios, we are inclined to seek standard answers, such as formulas used in exams or strategy guides in games. However, the learning process of foreign exchange trading is more like a lonely exploration journey, without applause or reminder guidance. Many people persevere on this path for many years before finally realizing that success is often closely related to luck.
In the field of foreign exchange trading, we are always in a competitive situation with other traders and their funds, competing based on different understandings of the market. To achieve success in the field of foreign exchange trading, one needs to have a solid theoretical foundation and rich practical experience, and this knowledge is often difficult to obtain completely from books. Even though the works of foreign exchange trading experts provide some valuable insights, there are still differences in these knowledge at the logical and technical levels. Therefore, we need to continuously record and classify all the foreign exchange trading information and market dynamics we come into contact with. Even if trading technology reaches a relatively high level, the constantly changing market and the uncertainty of human nature make making profits not an easy task.
In addition, foreign exchange traders also need to cultivate strong psychological qualities, learn to release pressure when alone, take decisive actions at key moments, and exit in time when unfavorable signs appear. The success of foreign exchange trading completely depends on personal cognition and efforts. There is no unified standard answer in the world. Only through continuous practice and learning and understanding the market environment, technology and the logic of others can one achieve success in trading. The learning process of foreign exchange trading is full of challenges. Many people learn through practice but do not know how much hardship is hidden behind it. In the process of continuous attempts and mistakes, due to the influence of concepts and living costs, the body and mind will be greatly impacted. Sometimes one may even feel extremely exhausted. Fear, hesitation and disappointment may repeatedly emerge. In the worst case, it may lead to complete despair.
For those who are proficient in foreign exchange trading, trading may not be so difficult. As the saying goes, what is difficult for those who don't know how to do it is easy for those who know how to do it. Successful foreign exchange traders do not rely on trading to make a living. For them, the trading process is more of an experience and enjoyment, and profits and losses become less important. However, for those who hope to support their families and make a living through foreign exchange trading, they face even greater pressure. Especially for foreign exchange traders in China, due to policy restrictions, there is a lack of legal platforms and a good foreign exchange trading environment in China, which makes the sources of obtaining trading information, knowledge and experience limited and there is a lack of comprehensive and effective foreign exchange trading reference materials and experience sharing.
In the foreign exchange investment trading market, if the trading systems of every foreign exchange investment trader perform outstandingly, then the source of profit becomes a highly valuable issue for discussion.
Many people may think that when the market trend is on the rise, everyone can obtain profits. However, this also raises a question: if everyone is making money, then who is incurring losses?
In fact, there is a delicate balance between different foreign exchange investment trading strategies and market conditions. For example, traders who are good at buying low and selling high prefer a market with mild fluctuations, because in a one-sided market, they are very likely to miss the entry opportunity, and even adding positions when prices fluctuate may lead to huge losses. Foreign exchange short-term traders who are keen on chasing rallies and selling declines prefer more volatile markets. After all, mild fluctuations may cause them to trigger stop losses frequently.
Foreign exchange investment trend followers believe that when the market trend is clear, it is a good time for them to make profits. However, in other types of market environments, they may suffer financial losses. Essentially, only when the foreign exchange investment trading system matches the market conditions can traders achieve profits.
Under the strong trend of the foreign exchange investment trading market, the continuous influx of newly established positions pushes up prices, enabling early-entering foreign exchange investment traders to benefit, while those who fail to exit in time may face losses. These foreign exchange investment traders who fail to exit in time often lack effective trading systems.
In the capital market, those who enter the market early obtain benefits from those who enter the market later. Only when you exit the market does the money truly belong to you. To become a person with foresight, the key lies in calm analysis and independent thinking.
Foreign exchange investment traders who can make stable profits usually have their own foreign exchange investment trading logic and system. They know which types of market conditions they are trading in. Whether it is long-term, swing trading or short-term, there is no problem. The core of making profits for foreign exchange investment traders lies in that as long as the trading system sends out a signal, they will open positions; at the right time, they can obtain sufficient profits, and at the wrong time, they can decisively stop losses.
In contrast, those less mature foreign exchange investment traders may be eager to open positions every day. Once they make profits, they are eager to close positions. Once they suffer losses, they insist on holding and even add positions to reduce costs. Most of their orders are transferred to successful and mature foreign exchange investment traders, and most of the orders of successful and mature foreign exchange investment traders are also transferred to them. In this way, successful and mature foreign exchange investment traders can profit from the greed and lack of discipline of failed and immature foreign exchange investment traders.
In the field of foreign exchange market analysis, numerous analysis tools and methods are often intertwined and sometimes even conflict.
The application standards of the same analysis tool may vary significantly in different contexts. The challenges faced by foreign exchange investors stem from both the complexity of market analysis and the test of psychological factors. Therefore, it is crucial to widely learn and master a specific field, establish clear and distinct analysis standards, and obtain data through post-mortem analysis.
Most widely discussed foreign exchange technical analyses are actually just descriptions of market phenomena. For a single currency pair, investors need to judge whether its trend is independent of the market or follows the trend of mainstream currencies. In addition, they should also analyze the sustainability of currency prices and positive news and deeply explore the foreign exchange market.
Most of the so-called technical analyses in the market often ignore the basic attributes of the market and do not deeply discuss the composition of funds and the specific positions of support lines. Many investors simply collect currencies with similar phenomena, analyze their commonalities, and mistakenly think they have found the secret to success. True technical analysis is a continuous process of verification and correction. Every discovered phenomenon needs to find counterexamples for verification.
Through a large amount of post-mortem analysis data, inspiration can be stimulated and counterexamples can be found in historical data. Only when all phenomena meet expectations can investors conduct real-trading verification. Every breakthrough in technical analysis requires long-term verification and consolidation, and at the same time, a deep understanding of investors' mentalities is needed. After years of tempering, it can truly become a foreign exchange investment technique.
The accuracy rate of technical analysis is not as universally applicable and with extremely high winning rates as many people think. In fact, even for the world's top investors, their winning rates are only about 30%. There is no method or theory with an absolute high winning rate. Therefore, how to ensure final profitability under a not-so-high winning rate is an experience, skill, and technique.
From a posteriori perspective, investors seem to have a god's-eye view, but when in the market, they often feel confused. Foreign exchange technical analysis is a skill that requires long-term observation and practice. By discovering and summarizing laws, investors can build their own trading system, explain the logic of market operation and price trends, and on this basis, establish a personal trading system. In this process, investors' cognitions will continuously break through, and their psychologies will experience despair and ecstasy. After experiencing unimaginable hardships and joys, investors will find that this road is the best path for tempering and self-cultivation.
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