Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
The background and unrealistic demands of retail foreign exchange traders are the key factors that cause anxiety and impatience.
In the field of foreign exchange investment and trading, not all challenges come from the market. In some cases, the background and unrealistic demands of individuals are the key factors that cause anxiety and impatience. The pursuit of flawless and extremely low-risk trading strategies is often caused by the limitations of objective environment. When faced with urgent livelihood issues such as daily expenses and upcoming bills, the patience and long-term planning required for long-term foreign exchange investment are difficult to implement. Short-term foreign exchange trading seems to be the only way, although it is full of hidden dangers of frequent stop losses and high transaction costs, and limited principal also makes this dilemma worse.
For many foreign exchange traders with ordinary backgrounds, long-term strategic investment may seem far away. The realistic pressures they face force them to frequently conduct short-term transactions in order to explore the almost illusory "holy grail", that is, a trading method that can achieve stable and high returns with extremely low risks. The prosperity of the foreign exchange investment and trading industry depends to a certain extent on these ordinary short-term traders who continue to try but are repeatedly frustrated.
Foreign exchange investment and trading may seem simple, but in fact it belongs to a category with very high technical barriers. For individuals who focus on self-protection, what kind of business is worth devoting all their efforts? Do they really have the space to choose? Foreign exchange investment and trading is fundamentally a trade-off between risk and return, and risk-averse people usually find it difficult to obtain expected returns.
Foreign exchange investment and trading traders are always looking for a low-risk and high-return trading strategy, but in reality, such a strategy does not exist.
It is extremely difficult to make an investor's trading level reach the same level as others through a few words.
In the field of foreign exchange investment, the teaching of trading skills, strategies, experience and knowledge is a very challenging task. This is mainly because investors need to rely on their own learning, research and understanding to a large extent in order to obtain unique trading tips.
In the practice of foreign exchange trading, there are significant individual differences in the trading skills, strategies, experience and knowledge possessed by different investors, which in turn leads to the differentiation of their trading levels and abilities. This difference is universal. Since everyone's experience accumulation has inherent limitations, it is extremely difficult to make an investor's trading level reach the same level as others through just a few words. The key to accepting and improving this difference lies in the learner's own diligence, rather than relying solely on the teaching and instruction of others.
In addition to the difference in trading level, even if investors are at the same trading level and ability level, their trading methods will be different due to the diversity of their personal characteristics. Therefore, even for investors at the same level, their trading strategies and methods will be different due to differences in individual characteristics.
From another perspective, foreign exchange investment is also an incentive model for potential losses.
When investing in the foreign exchange market, investors must fully realize that they need to bear the potential loss risks. This mechanism is essentially a reverse incentive paradigm, rather than focusing only on the positive incentive dimension of profit.
When investors face loss situations or even account liquidation, there is still a possibility of unwillingness to exit the market. This psychological state is significantly different from the mentality presented when working in banks or other financial institutions. In the employment scenario of financial institutions, once a loss occurs, since the funds involved are not derived from personal labor income, investors are unlikely to feel strong pain, which is similar to the internal logic of "selling ancestral property without feeling bad". This is also the root cause of many traders who prefer high-risk trading strategies often coming from such financial institutions. For example, the case of Barings Bank, which eventually went bankrupt due to improper operations by traders, is a very representative example.
According to statistics from Wall Street, brokers account for a higher proportion of those involved in improper prostitution, rather than traders. The key to the human nature behind this is that brokers usually do not need to bear trading risks, while traders are always exposed to risks, so they are relatively lacking in the impulsive characteristics of taking risks.
It can be seen from this that independent foreign exchange investors should not fall into a state of self-deprecation due to their identity attributes. In fact, the height of achievement achieved by successful independent foreign exchange investors is often difficult for employees of banks or financial institutions to achieve. This is not because independent foreign exchange investors have extraordinary abilities, nor because the employees of banks or financial institutions lack abilities, but the result of the interweaving and joint action of human nature and incentive mechanisms.
In the field of foreign exchange investment and trading, the 4-hour chart (H4) is usually regarded as one of the ideal time frames.
In terms of the formulation of foreign exchange trading strategies, the 4-hour cycle presents a relatively balanced perspective, which is neither too macro nor too micro. With the help of the H4 time frame, traders have ample time to conduct market analysis and make rational and wise trading decisions.
In comparison, in shorter time frames such as 5 minutes (M5) and 15 minutes (M15), market fluctuations are often more intense and frequent. This requires traders to have deep trading experience and quick reaction capabilities to effectively respond to the rapid changes in the market, reduce trading risks and seize potential opportunities.
Foreign exchange long-term investors use relatively low leverage ratios to resist risks and ensure the security and stability of funds.
In the field of foreign exchange investment and trading, position trading strategies are widely recognized in the industry as one of the models of efficient trading strategies. Experienced and professional foreign exchange traders can achieve long-term and generous profit returns and achieve steady asset appreciation with the help of position trading strategies.
This strategy usually requires traders to keep their trading positions open for weeks or even months. Its core purpose is to accurately locate and match the long-term trend direction of the market and fully grasp the price trend driven by macroeconomic factors. In this trading scenario, traders are likely to reap hundreds or even thousands of basis points of profit, which effectively demonstrates the excellent effectiveness of this strategy in capturing long-term market opportunities.
Of course, given the high complexity and uncertainty of the foreign exchange market, in order to effectively reduce potential risks and avoid triggering stop-loss orders due to abnormal short-term market fluctuations, from the perspective of the practical application of position trading strategies, it is generally recommended that traders use a relatively low leverage ratio in trading operations to strengthen the risk resistance of the trading account, ensure the security and stability of funds, and lay a solid foundation for the long-term steady growth and sustainable development of investment benefits, so as to move forward steadily and obtain sustained returns in the complex environment of the foreign exchange market.
13711580480@139.com
+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou
13711580480@139.com
+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou