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In the field of foreign exchange trading, many highly educated practitioners from other industries often perform worse than entrepreneurs with lower educational backgrounds.
There are significant differences in their understanding and control of risks. Employees usually tend to avoid risks, while entrepreneurs are relatively more risk-tolerant.
The same is true in the identification of foreign exchange investment and trading books. Highly educated people with an employee mindset are more likely to firmly believe in the effectiveness of books. However, in this regard, a high education level may instead cause misdirection. Entrepreneurs with lower educational backgrounds are relatively less convinced of the powerful role of books. They pay more attention to the value of practice and actual combat.
When reading foreign exchange investment and trading books, one should have a critical thinking. Since books represent the author's views, they need to be discriminated. At the same time, the books themselves should also be examined. Blindly believing in books is an irrational behavior. Generally, when a method is really effective, the author usually will not write a book about it. The completion of a book is often because the benefit from selling the book exceeds the benefit that can be obtained by using the method. Sometimes, the methods in the book are of no value to the readers. The author is only for selling the book, and such books are better not read.
When reading foreign exchange investment and trading books, if you feel that trading has become simple, then you need to be vigilant because nothing in the world is so simple. Some foreign exchange investment and trading technical books often choose trending market conditions as examples, which can easily mislead readers. In fact, the market is in a consolidation state most of the time. Everyone longs for big market conditions, but it is unrealistic to claim that every big market condition can be captured by the methods in the book. The real big market conditions in the market are extremely rare every year. Operating according to the methods in the book often leads to errors because the signals of true and false trends are the same in the initial stage and need to be distinguished through actual trading. Books that frequently use rare big market conditions as examples are best avoided because believing their content is likely to lead to losses. The existence of the speculative market is based on the existence of risks, not the popularization of technology. Trading technology is the analysis of market conditions and has strong personalized characteristics. If there is a technology that can ensure that a certain price will definitely rise, then no one will sell at this price. Without buying and selling, the market will hardly survive.
Foreign exchange investment and trading is not only a technical issue but also involves multiple dimensions such as capital, mentality, and execution. Excellent technology requires capital support, abundant capital requires a good mentality, and a stable mentality requires strong execution. The lack of any one link can easily turn a profit into a loss. It is extremely naive to think that there will be no loss just by knowing some technology.
In foreign exchange investment and trading, there is no cost-free situation. If you think there is no cost, it may be that you do not fully understand it or may even have fallen into a scam. The costs of foreign exchange investment and trading include margin, which is actually a kind of liability. In addition, the same signals of true and false trends will bring the cost of trial and error, that is, losses. The superposition of these two risks can easily lead to significant losses of funds. People who overuse leverage often suffer such losses.
In foreign exchange investment and trading, losses are inevitable. The key lies in turning losses into valuable lessons. If there is a misoperation, it should not affect the mood and the decision-making of the next transaction. If the operation is correct, one should be able to obtain a potential profit of more than three times. If the loss is really necessary, it also has value because obtaining experience from it is also a kind of gain. What is terrifying is not recognizing the necessity of losses or being unwilling to bear any losses.
From a professional perspective, the so-called employee mindset refers to the group of people who rely on working for others to receive a fixed monthly salary to maintain their livelihood.
They face relatively small risks and usually do not need to take the initiative to take risks. If there is no income for a month, they will fall into extreme panic and even dare not ask for leave. Losing one day's income may make them feel uneasy. The entrepreneurial mindset, on the other hand, is the mindset of those who work for themselves without a fixed monthly salary and must find their own ways to make a living. They are almost always at risk and are taking risks from beginning to end. They may have no income for a long period of time. At this time, they must endure hardships and persevere, and have the mental preparation of "not opening for three years, but making a profit for ten years once opened".
In the field of foreign exchange trading, many highly educated practitioners from other industries often perform worse than entrepreneurs with low educational backgrounds. There are significant differences in their understanding and control of risks. Employees usually tend to avoid risks, while entrepreneurs relatively have stronger risk tolerance. The same is true in the discrimination of foreign exchange investment and trading books. Highly educated people with an employee mindset are more likely to firmly believe in the effectiveness of books. However, in this regard, a high education level may instead cause misdirection. Entrepreneurs with low educational backgrounds are relatively less convinced of the powerful role of books, and they pay more attention to the value of practice and actual combat.
Analyzing from the perspective of high probability, even if an entrepreneur with a poor mindset enters the foreign exchange investment and trading market, their mindset is better than that of an employee. Because entrepreneurs have been forced to practice and adapt to the ability to take risks, and fate has urged them to learn the awareness of taking risks. And even if an employee with a good mindset enters the foreign exchange investment and trading market, their mindset is also difficult to compare with that of an entrepreneur, because they have not experienced risks and do not want to take risks, and they are in a blank state in terms of risk-taking.
Of course, even if a successful entrepreneur enters the foreign exchange investment and trading market, although they have advantages in risk control and mindset, they also have shortcomings in fund management. Because independent entrepreneurs earn hard-earned money, which is not easy to come by and they are unwilling to lose it. Therefore, they will be more cautious in fund control, dare not fight boldly, and are easy to miss good opportunities in the face of major market trends. Therefore, timid funds are difficult to succeed. Even if they have achieved financial freedom before entering the foreign exchange investment and trading market, it is also difficult to achieve wealth freedom and the opportunity to be on the wealth list.
In foreign exchange investment and trading, overly relying on book knowledge while ignoring practice is undoubtedly abandoning the real learning opportunity.
Although being familiar with military strategies can provide profound insights at the strategic level, if lacking practical experience, it is still difficult to achieve victory on this "battlefield". In the field of foreign exchange investment and trading, theoretical knowledge often lags behind the development process of the market. Therefore, relying only on outdated book knowledge to cope with the rapidly changing market is difficult to achieve the profit goal.
The success in the field of foreign exchange investment and trading does not solely depend on reading a large number of books or mastering numerous techniques. The definition of success varies from individual to individual, but it usually means achieving profitability in the long term, steadily increasing the net worth of wealth and reaping rewards at the end of the year, rather than being in vain in the fluctuations of the foreign exchange investment and trading market. To achieve this goal, the key lies in accurately judging the market trend and conducting buying and selling operations at the appropriate time. However, even if the extension of the trend is correctly predicted during the fluctuation of foreign exchange currency prices, it may also need to go through a long period of no income. Therefore, both correct judgment of the foreign exchange investment and trading market and the grasp of timing are of crucial importance. Only by organically combining these two points can success in the market be ensured. Obviously, this is not an easy thing. If it could be achieved simply by reading trading books and learning techniques, then the foreign exchange investment and trading market would be full of winners.
In the field of foreign exchange investment and trading, there is a significant difference between book knowledge and practical operation.
Although the industry is not short of academic elites and highly educated talents, success is not solely determined by academic achievements. In the initial stage of foreign exchange investment traders, due to the lack of systematic knowledge, they will try to learn the technical indicators of the foreign exchange investment and trading market and the currency history of mainstream countries. However, foreign exchange investment traders will gradually realize that these knowledge are not practically useful for achieving stable profits, because technical indicators reflect past market trends rather than predictions for the future.
Therefore, foreign exchange investment traders will abandon these traditional tools and turn to develop their own technical systems. In the foreign exchange investment and trading industry, what is really needed is innovation ability, not just learning ability. Capable people usually do not choose to write books, because even if the content is extremely excellent, if there is a lack of popularity, it is difficult to attract readers. Communicating with successful foreign exchange investment traders and successful people who really rely on trading to make profits is the shortcut to achieve rapid improvement and move towards success.
Foreign exchange investment and trading cannot become a master just by reading books. Books can only expand the scope of knowledge, while real experience needs to be accumulated through actual combat. Many theorists are no different from beginners in actual operation because they lack the experience of practical application of knowledge. Most foreign exchange investment and trading books can only provide basic knowledge and may be helpful to readers with a certain foundation, but once those public foreign exchange investment and trading methods are made public, it often means that they have become ineffective. In foreign exchange investment and trading, those who make money earn the losses of those who lose money. If you use public methods, your operations will be completely mastered by the opponents, thus losing the chance of winning.
The loss in foreign exchange investment and trading is not the fault of reading, but the problem of the type of books selected and personal understanding. Reading can help us understand the rules and principles of the foreign exchange investment and trading market, provide solutions, stimulate thinking and expand horizons, but this needs to be combined with personal experience and practice. In the field of foreign exchange investment and trading, practice is the only criterion for testing truth. If both theory and practice are not clear, then success will be more difficult. Choosing the right books is extremely important because the market is full of a large amount of useless information. Foreign exchange investment and trading requires pure and consistent values, and multiple sets of values will lead to confusion and wrong decisions.
Reading orthodox foreign exchange investment and trading books can firm the mind and remove ambiguous concepts, just like removing impurities in steel forging. Foreign exchange investment traders should spend a lot of time screening out some valuable books, which are the materials for insiders to learn. If foreign exchange investment traders have not read these books yet, then you may need to be more cautious in choosing your own learning materials.
In the field of foreign exchange investment and trading, reading books related to foreign exchange investment and trading may not necessarily bring direct economic benefits.
Although it can provide a certain degree of comfort at the psychological level, its effect is relatively limited. If one cannot deeply understand the content when reading, then as the amount of information contacted increases, the concepts are very likely to become chaotic. Reading is sometimes like a placebo, unable to directly solve practical problems, but it can provide the power to persist when people are confused. However, only through continuous persistence is it possible to enlighten wisdom. However, many people, due to the limitations of lifespan and comprehension, are difficult to obtain this kind of enlightenment and thus fall into the state of mechanical reading. Excellent foreign exchange investment and trading books are only part of the factors for success, and successful people usually keep learning throughout their lives. Reading too much but having a shallow understanding of the books is one of the main problems. This situation will make people stay in the imitation stage. Because they cannot grasp the essence, the more they read and imitate, the easier it is to have conflicts, which in turn leads to difficulties in decision-making, lack of clear standards or blurred standards, and finally results in slow trading, continuous mistakes and losses. The solution lies in focusing on one method, repeatedly reading a foreign exchange investment and trading book, and practicing the correct method to achieve proficiency. Only when fully understanding its advantages and disadvantages and being able to use it freely can one achieve profitability.
If imitating the author's foreign exchange investment and trading method can continuously make a profit, then why would the author bother to write books? Wouldn't it be okay to obtain wealth directly through trading? Some foreign exchange investment transactions mostly adopt breakthrough strategies and are relatively suitable for trend-following trading because this method is relatively simple and easy to understand. However, most foreign exchange investment traders are not suitable for the breakthrough trading method, and they are difficult to understand the essence of it. Many books cannot help people realize the pre-judgment from the post-event and in-event situations, which requires a process from simple to complex and then to simple. Although those incomplete trading methods in the books may make money, the risk is relatively large and it is impossible to understand the essence of fluctuations. When conducting foreign exchange investment and trading, innovation is needed. Don't think that the authors who write books are masters. They may just have found some sporadic techniques. If these methods are really effective, they would have achieved wealth accumulation long ago. Among the many theories in the foreign exchange investment and trading market, few people conduct in-depth research on aspects such as band fluctuation amplitude and intraday fluctuation amplitude, and this is the core challenge. Conducting foreign exchange investment and trading can make investors realize the value of life. The analysis tools that match the price fluctuations and conform to the highs and lows are very important. The changes in foreign exchange investment and trading are not complicated, but innovators are extremely rare.
In the field of foreign exchange investment and trading, various books introduce a variety of trading methods, including long-term, medium-term, short-term, and ultra-short-term value investment.
At specific moments in foreign exchange investment and trading, these methods may give contradictory instructions, thereby causing investors to fall into a state of confusion and chaos. Eventually, investors may frequently conduct buying and selling operations when the market fluctuates slightly, unable to maintain logical coherence, and thus fall into a dilemma of continuous losses. This is mainly because investors have not yet constructed a trading strategy suitable for themselves, so it is difficult to obtain profits stably.
When reading foreign exchange investment and trading books, the correct approach should be to think while reading and deeply explore the profit-making logic behind the content described in the books. It is necessary to consider what kind of market conditions these methods are designed to cope with? What specific problems are they aimed to solve? What are their respective advantages and disadvantages? For each foreign exchange investment and trading book, an in-depth analysis attitude should be adopted, and comparisons should be made with each other, rather than just staying at the surface level of imitation. It is necessary to deeply understand the principles and essence behind them. Then, based on one's own personality characteristics and psychological tolerance, absorb the advantages of the methods introduced in the foreign exchange investment and trading books and construct a trading system suitable for oneself.
In the process of foreign exchange investment and trading, it is necessary to continuously conduct practice, summary, and reflection. It is necessary to conduct in-depth research on a large amount of perceptual materials, accurately recognize the real objective situation, and then summarize and conclude effective methods. Oppose the approach of only learning theory and not paying attention to practical problems. Through the way of continuous practice in the process of foreign exchange investment and trading, a set of trading strategies suitable for oneself can be gradually developed, so as to obtain profits stably in the market.
In the field of foreign exchange investment and trading, there is a crucial link between mastering knowledge and practical application, that is, practice.
It should be clear that the key between "knowing" and "obtaining" lies in "doing", and this is precisely the fundamental reason for the failure of the vast majority of foreign exchange investment traders. Simply reading books related to foreign exchange investment and trading cannot truly guarantee a complete understanding and flexible application of the learned knowledge. Only through practical experience and in-depth reflection can knowledge be truly absorbed and transformed into practical skills that match personal characteristics. It should be recognized that if there is a lack of sufficient practical experience in foreign exchange investment and trading, it is difficult for foreign exchange investment traders to deeply understand the deep connotations in foreign exchange investment and trading books. Therefore, foreign exchange investment traders should not blindly rush for quick results. Instead, they should actively engage in practical activities, conduct more in-depth reflections, rather than simply relying on reading. The book knowledge of foreign exchange investment and trading needs to be verified and absorbed in the practice process. If there is a lack of practice, foreign exchange investment traders may fall into deeper confusion and even be bound by words, leading to counterproductive results.
In foreign exchange investment and trading, the ultimate goal of reading books is to acquire knowledge. The key to avoiding losses in the process of foreign exchange investment and trading lies in making correct market entry decisions. If losses become more severe while reading volume increases, this probably means that foreign exchange investment traders have not truly grasped the core essence of trading. The essence of foreign exchange investment and trading lies in accurately identifying the intentions of the main forces in the foreign exchange investment and trading market and making wise decisions. The theory that the main forces confuse retail investors in foreign exchange investment and trading through candlestick charts, although not strictly verified, seems to have certain rationality.
In the field of foreign exchange investment and trading, the accumulation of experience is more capable of promoting foreign exchange investment traders to mature than the passage of time. Foreign exchange investment and trading books are not scientific works. Many of their contents are not absolute truths and may even be completely wrong, thus misleading readers. Reading more such books may increase understanding of basic knowledge. However, this knowledge often has situations of repetition, plagiarism, and uselessness, or it is only basic cognition and there is a large gap with higher-level understanding, just like basic knowledge in primary school cannot be compared with graduate courses. Therefore, although reading can expand our knowledge, this knowledge often stays at a lower cognitive level and may seem powerless in practical operations. Foreign exchange investment and trading knowledge is like a double-edged sword. While enriching foreign exchange investment traders, it may also have a negative impact on them. Blindly believing in books is worse than not reading at all. Reading without thinking and without practice will only make people become slaves to books and never be able to understand the true meaning of books.
Foreign exchange investment and trading also need to have the same cognition and spirit as the ten-year process of cultivating doctors. However, it is regrettable that many people rush into the foreign exchange investment and trading market eagerly after only studying for a few days or half a year. They come with funds but end up losing funds and only leave behind loss-making experiences. Studying medicine is a systematic and gradual accumulation process. The medical field will eventually be divided into different specialties, such as dentistry, internal medicine, surgery, dermatology, obstetrics, anesthesiology, etc. Each specialty has its unique learning content, and no one can be proficient in all fields. In the field of foreign exchange investment and trading, people often learn various schools without selection. They use wave theory today, adopt Dow Theory tomorrow, and turn to fundamental analysis the day after tomorrow. Such an approach is difficult to avoid losses.
In the field of foreign exchange investment and trading, although reading a large number of books related to foreign exchange investment and trading can expand one's knowledge reserve, it may sometimes lead to greater losses. There are many reasons behind this seemingly contradictory phenomenon.
First of all, there is an obvious gap between theoretical knowledge and practical operation. Book knowledge certainly has certain value. However, the foreign exchange investment and trading market is unpredictable, which requires traders to accumulate experience through practice in order to flexibly deal with various complex situations. Experience cannot be obtained only by reading. In the field of foreign exchange investment and trading, only through practical operation can one truly master the required skills. Inexperienced traders, even if they have read a large number of books, are very likely to face a greater risk of loss.
Secondly, mindset management occupies a crucial position in foreign exchange investment and trading. In the trading process involving money, an unstable mindset is prone to errors. Sometimes, excessive reading may make people overly confident, thus leading to increased losses in actual operations. The foreign exchange investment and trading market is extremely complex and covers many factors such as economy, politics, and society. It is very difficult to achieve a comprehensive and in-depth understanding only by reading books. If the understanding of the market is not deep enough, then decision-making will become extremely difficult.
Furthermore, risk management in foreign exchange investment and trading cannot be ignored. Some people only focus on profitability but overlook risk management. Without a reasonable risk management strategy, even if one has read a large number of books, it may still cause serious losses. Therefore, successful trading requires not only reading but also practice, accumulating experience, adjusting the mindset, comprehensively understanding the market, and implementing effective risk management. Merely reading a large number of books cannot ensure trading success. The key lies in implementing a strategy to the extreme.
Many foreign exchange investment and trading books are mostly narrative in content and may contain exaggerated elements. Even those books that claim to explain techniques have relatively limited practical effects. Some knowledge, especially the techniques that can generate stable profits, is difficult to express accurately in words. Reading a lot but still not achieving success may cause an incomprehensible sense of frustration. Foreign exchange investment traders should act according to their own abilities. The market situation is clearly in front of us, and observing the market is more rewarding than reading books. Books can only provide methods, and whether the methods are reasonable, whether they can be flexibly applied, and whether different methods can inspire and optimize each other are the most crucial issues. If a person can extract core methods from books like artificial intelligence and conduct verification, optimization, and improvement, then their analytical and logical thinking abilities will be significantly enhanced.
Finally, the success of foreign exchange investment and trading depends on an individual's methods and levels rather than the number of books read. The key lies in the quality of investment. The foreign exchange investment and trading market is a process that emphasizes logic and methods rather than relying on luck. Relying too much on books for trading is like an infant who has not been weaned. To put it another way, although reading books cannot directly bring profits, it is almost impossible to succeed without reading books. Books are static, while the market is dynamic. Methods that can bring profits may also lead to losses because profit and loss have the same source.
Success in the foreign exchange market is by no means easy and cannot be mastered by simply reading a few books.
Foreign exchange investment and trading seem simple on the surface but are extremely complex in reality. The complexity stems from the uncertainty of human nature. If success could be ensured only by reading books, then everyone would be a winner in the foreign exchange market. The difficulty of foreign exchange trading lies in the fact that market ups and downs are intertwined and constantly changing, which poses a severe test to the patience and psychological endurance of traders. Many traders suffer continuous losses because they cannot overcome internal challenges. Most trading books only provide theoretical knowledge and cannot be directly converted into profits. They can only help traders master some basic concepts.
To achieve profitability, traders need to build a trading system suitable for themselves through practice, trading, and summarization. This is far more effective than simply reading books. The number of books read is not the same as the degree of understanding of the content in the books, and the ability to understand the content and apply it in practice also varies. If knowledge cannot be converted into practical application, then reading books is of no value. Different books usually focus on specific trading methods. Beginners who are eager for quick success and try to master multiple methods are prone to making wrong decisions, which further exacerbates the phenomenon of "the more you learn, the more mistakes you make". The view that reading more books leads to greater losses is wrong. Even if you read less, there may still be an aggravated situation of losses. The psychological mechanism behind this is similar to that of gamblers or defrauded people who are eager to recover their capital. This kind of psychology can make people lose their rationality and lead to worse trading performance.
For foreign exchange traders, no matter how much information they read or hear, it is not as good as practicing personally once. In trading and life, we should read more, listen more, practice more, and at the same time abandon unrealistic greed. Only in this way can we not deviate from the right path. Books provide theory. Just like learning to swim, if you don't practice in the water, you will never learn. Some people think that they can learn by reading books and then directly go swimming in rivers, while ignoring practice in swimming pools. This is very likely to lead to drowning. The knowledge in a trader's mind is not the same as the physical skill. Real masters are obtained through muscle memory and long-term practice. Even if their postures are not very standard, they are sufficient to deal with actual situations. This fully shows that practice is more important than theory. Theory is a summary of past practice and can only be used as a reference and cannot be completely relied on.
In the field of foreign exchange trading, the technical application strategy plays a crucial decisive role in trading effectiveness.
If investors simply rely on technical analysis to blindly chase market trends, they are very likely to face the risk of failure. However, for investors who use technical analysis as an auxiliary tool for trading decisions and only operate under specific market conditions with a relatively high probability, their success probability will be significantly improved. Many traders in a loss-making state often attempt to capture every market opportunity, while successful traders will choose to limit their trading scope and focus on market dynamics with a relatively high probability of success. Technical analysis is actually a manifestation of the psychology of market participants and can reveal the psychological state of investors behind the charts. If there is a lack of in-depth insight and rich practical experience, it will be difficult to truly master the core essence of technical analysis.
The core of technical analysis focuses on price behavior, and the fluctuations in price jointly build an independent system. In the foreign exchange market, traders form prices through buying and selling activities. Once the price is determined, the importance of its value is relatively reduced because the price can change outside of the value. Even for items with no intrinsic value, as long as there is trading, the market will exist and the price will continue to change. As long as the foreign exchange market continues to trade, the price system will continue to exist. The connection with technical analysis lies in the fact that the foreign exchange market is essentially no different from other markets, only the trading objects and values are different. Technical analysis is actually an analysis of human behavior, rather than a simple price change. If this point is ignored, technical analysis will appear rather superficial.
The foreign exchange market is like a hunting game, and competition is ongoing at all times. The market is the maker of rules and follows the law of the survival of the fittest. Resources always flow to those who can use them most effectively. In theory, funds will eventually be controlled by the strong. The foreign exchange market is an ecosystem that follows the rule of the big fish eating the small fish. Technical analysis is one of the effective means to defeat other participants in this ecosystem. For ordinary traders, it may even be the only means. The knowledge involved in technical analysis is extremely extensive, but only a few contents are truly valuable and require extremely strong insight and rich knowledge reserves to understand.
Many people have achieved success in the foreign exchange market through technical analysis, but this path is not smooth. If you think you have the corresponding ability, you can give it a try. The foreign exchange market is a silent battlefield. If you are not well prepared, it is best not to involve in easily. Whether it is technical analysis or fundamental analysis, for each method, only a few people have mastered effective knowledge, a few people have advanced tools, and most people use relatively basic tools. Each path is full of challenges, and only a few people can obtain profits from it. There are no so-called chosen ones here, and foreign exchange traders are all ordinary people. If you think you have the ability of technical analysis, you can try to enter the market and test your own strength.
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