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

In the complex and professional field of foreign exchange investment and trading, investors must be highly cautious about those bottom-picking or top-touching behaviors that have no factual basis and are purely based on subjective assumptions.

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It should be clear that bottom-picking and top-touching are essentially only a market entry strategy. Whether they are reasonable depends on whether the subsequent planned exit strategy is scientific and appropriate.
When foreign exchange investors choose the bottom-picking strategy, if the first attempt fails to meet the expected market trend, they should immediately implement stop-loss measures with a decisive and resolute attitude to effectively control potential losses. On the contrary, if the bottom-picking operation successfully meets expectations, they should follow the trend and closely follow the market trend so that investment profits can be fully expanded and increased. However, in the actual foreign exchange investment practice, most investors did not follow the above scientific and reasonable exit logic after implementing the bottom-picking or top-touching operations, but fell into the misunderstanding of "holding on". The underlying logic behind this behavior is that investors rashly buy at the bottom based on their judgment that the current market price is at a relatively low level. Once this judgment is biased and the price continues to fall, they tend to habitually believe that the lower the price, the closer it is to the bottom area, and even hope to increase the possibility of future profits by reducing the average cost, thus falling into a stubborn and difficult-to-extricate "holding on" mindset.
This "holding on" behavior is usually a typical feature of retail investors with relatively small capital scale and relying on leverage for trading. For large investors with extremely strong financial strength, even if their judgment of the market direction is accurate, they choose to hold positions in the face of temporary losses. This is actually just a floating loss state, and is not equivalent to "holding on" behavior. At its root, such investors usually do not rely on leverage to magnify their returns during the investment process. Their position holding decisions are based on in-depth analysis and judgment of the long-term market trend, not blind risk-taking. Therefore, their position holding behavior does not constitute a "holding on" behavior with high risk nature.

In the professional field of foreign exchange investment and trading, it is undoubtedly of great significance to properly deal with false breakthrough situations and accurately use stop-loss strategies.

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Stop-loss strategies do not exist in isolation. Their in-depth discussion and practical application must be closely combined with the unique trading strategies that investors adhere to, and at the same time rely deeply on specific market environment conditions and investors' carefully planned trading plans in advance.
When using stop-loss strategies, investors need to start from a macro perspective and comprehensively and comprehensively consider the current specific position of the market and their own financial conditions. When investors have sufficient capital reserves and the market is clearly at the historical bottom range, stop-loss measures are not absolutely indispensable at this time based on professional judgment of the potential reversal of the market. In this case, investors should rely on professionalism and patience to closely observe market dynamics and wait for market trends to become clearer, so as to obtain more reliable and accurate market signals and provide a solid basis for subsequent investment decisions.
When the market is in the middle of the historical trend, the market direction often presents a complex and ambiguous situation. At this stage, the choice of stop-loss strategy needs to be flexibly and scientifically adjusted in combination with the investor's personal risk preference. Investors can effectively control potential risks and ensure the stability of the investment portfolio by accurately setting stop-loss points; or they can choose to temporarily adopt a wait-and-see attitude, continue to track the subsequent dynamic changes of the market, and make prudent and appropriate decisions based on more comprehensive and accurate market information.
However, when the market is at the historical top area, due to the significant increase in the risks contained in the market, decisively and resolutely implementing the stop-loss strategy at this time becomes the core key measure to maintain the security of funds. By stopping losses in time, investors can effectively avoid major losses caused by the large-scale correction that may occur in the market, and ensure the stability and security of their own assets.
When facing the complex situation of false breakthroughs, investors need to fully demonstrate their professional capabilities and use a variety of professional methods such as technical analysis and fundamental analysis to conduct comprehensive, in-depth and detailed research and judgment. Specifically, investors should pay close attention to multi-dimensional factors such as changes in trading volume, the magnitude of market fluctuations, and the release of relevant macroeconomic data when a breakthrough occurs, so as to scientifically verify the authenticity and effectiveness of the breakthrough. If during the breakthrough process, the trading volume shows a large-scale growth trend, and the market shows sustained and strong momentum, then from a professional perspective, this is very likely to be a real and reliable breakthrough signal; on the contrary, if the breakthrough is relatively weak, and there is a lack of strong support in terms of trading volume, market momentum, and macroeconomic data, then it is likely to be a false breakthrough. In this case, investors must maintain a highly prudent professional attitude and resolutely avoid blindly following the market's pursuit of rising and falling behavior. If necessary, according to the actual market situation, professional analysis methods should be used to make reasonable and appropriate adjustments to the stop loss position as appropriate, so as to deal with market uncertainties with a calm attitude and ensure the scientificity and rationality of investment decisions.

In trading activities, how to deal with false breakthroughs professionally and properly is a key issue that investors need to study in depth and grasp accurately.

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When investors have sufficient trading funds, they must conduct comprehensive, systematic and in-depth comprehensive considerations based on different market trends and the specific historical stage in which the market is located.
When the market as a whole shows a clear upward trend: If the market is in the historical bottom range, based on professional judgment of the long-term upward trend of the market and reasonable expectations of the potential reversal possibility of the bottom area, investors can carefully consider adopting a heavy position strategy at this time. In this case, facing a false breakthrough situation, there is no need to rush to execute a stop loss operation. Because from the macro perspective of market development, a false breakthrough at the historical bottom may be a short-term fluctuation in the process of building the bottom, not a real trend reversal. If the market is in the middle area of ​​the historical trend, given that the market direction at this stage is relatively vague and there is great uncertainty in the future trend, it is recommended that investors adopt a light position strategy. For false breakouts, stop-loss decisions should be made flexibly and prudently based on multiple factors, such as specific market microstructure changes, various technical indicator signals, and investors' own risk preferences. This is because in the middle area of ​​the market trend, the balance between potential returns and risks needs to be carefully weighed, and improper stop-loss decisions may lead to missed profit opportunities or unnecessary losses. When the market is in the historical top area, due to the significant increase in market risks in this area, false breakouts are very likely to indicate that the market trend is about to reverse. Therefore, investors must maintain a light position state, and once a false breakout occurs, they must resolutely implement stop-loss measures without hesitation. This is to effectively avoid potential major losses that may be caused by a reversal of market trends and ensure the stability and security of the investment portfolio.
When the market as a whole shows a clear downward trend: If the market is in the historical top range, considering the market volatility characteristics of the top area and the greater possibility of continuing the original downward trend, investors can choose to adopt a heavy position strategy. In the face of false breakouts, there is no need to rush to stop losses. This is based on the understanding of the operating logic of the market at the current stage. The false breakout in the top area may only be a short-term adjustment of the market in the early stage of the decline, not a change in trend. If the market is in the middle area of ​​the historical trend, it is appropriate to adopt a light position operation strategy in view of the complexity and uncertainty of market changes in this area. For false breakthroughs, whether to execute stop loss should pay close attention to market dynamics, including price trends, changes in trading volume, release of macroeconomic data and other factors, and make a comprehensive judgment based on the investor's personal risk tolerance. Because in the middle area of ​​the market, the market trend may be affected by the interweaving of multiple factors, it is difficult to accurately judge the market direction, so it is necessary to make decisions carefully. When the market is in the historical bottom area, although this area may be pregnant with opportunities for market reversal, false breakthroughs may also indicate that the market will continue to be under downward pressure. In order to effectively ensure the safety of funds, investors should maintain a light position state, and once encountering a false breakthrough, they must decisively implement stop loss measures. This is based on a full understanding of market risks to avoid unnecessary losses of funds due to misjudgment.

In the highly specialized field of foreign exchange investment and trading, properly handling erroneous positions is a very challenging and core task that requires sophisticated strategies to be carried out in an orderly manner.

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This task is by no means a simple and mechanical pursuit of the extensive model of holding profitable positions and immediately closing losing positions. In fact, even in the face of profitable positions, investors should not blindly and blindly continue to hold them, but should implement refined management based on a set of clear standards and rules that have been deeply analyzed and accurately customized, and highly meet the personalized needs of investors such as personal risk preferences, investment goals and trading styles.
For example, investors can prudently adopt the strategy of gradually raising the stop-profit level, and lock in part of the realized profits by timely and accurately raising the stop-profit price, so as to stabilize investment returns. Alternatively, a passive stop-profit mechanism based on market price fluctuations can be constructed. Specifically, when the price retreats from the peak to a pre-set specific ratio, the system automatically triggers the exit order to ensure that the profits obtained are effectively protected. At the same time, within the interval formed by the take-profit line and the stop-loss line, investors should demonstrate a high degree of flexibility and keen market insight, and dynamically and flexibly optimize and adjust their positions based on real-time market data, macroeconomic indicators, geopolitical factors and other multi-dimensional information, so as to adapt to the ever-changing market trend and ensure that the investment portfolio always evolves in the direction of maximizing expected returns.
It is particularly worth emphasizing that for the disposal of loss positions, quick closing is not the best decision for all situations. In certain specific market environments and trading situations, it is a wise choice based on a long-term investment perspective to allow a certain degree of floating losses within a reasonable range. The implementation of this strategy aims to release the necessary development space for potential long-term profits and fully tap the potential deep value of the market. However, this approach must be based on the solid risk management foundation of scientifically setting a reasonable stop loss. By accurately setting the stop loss, investors can strictly limit potential losses within an acceptable range and ensure that risks are always under control. In this way, while investors can effectively protect their own capital, they can also reserve the necessary operating space to capture more considerable and potential market opportunities, thereby achieving a dynamic balance between risk and return and steadily achieving investment goals in the field of foreign exchange investment, which is full of opportunities and risks.

In the professional field of foreign exchange trading, which is full of complexity and uncertainty, how to eliminate emotional-driven trading behavior from the root has become a core problem that many foreign exchange traders need to overcome. This issue is not only related to the scientificity and rationality of trading decisions, but also closely related to the investment returns and long-term development of traders.

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When foreign exchange traders successfully build a set of systematic and logically rigorous trading rules, the interference caused by emotional factors on trading activities is very likely to be effectively solved from the fundamental level. The principle behind it is that a complete set of trading rules is like a precise navigation system, which can provide traders with clear and clear action guidance in a complex market environment. This enables traders to conduct trading activities in an orderly manner in strict accordance with established rules when facing the ever-changing market conditions, rather than letting subjective emotions arbitrarily influence trading decisions, thereby effectively avoiding irrational trading behaviors caused by emotional impulses.
Once foreign exchange traders have sufficient and appropriate capital scale, the thorny problem of emotional trading is likely to be properly solved. The sufficiency of capital scale means that traders have stronger risk resistance when facing market fluctuations. This solid and solid financial foundation allows traders to always maintain a calm and calm mentality during the trading process, significantly reduce emotional fluctuations caused by capital pressure, and thus reduce the probability of emotional trading behaviors from the source.
With the continuous precipitation and accumulation of foreign exchange traders' trading experience, the problem of emotional trading is expected to be significantly improved in essence. The continuous accumulation of trading experience prompts traders to form a deeper understanding of the laws of market operation, so that they can be more handy and at ease when dealing with various complex and changing market conditions. With their rich past trading experience, they can analyze the current market situation from a more rational and objective perspective, effectively avoid wrong trading decisions made due to impulse, and thus improve the accuracy and scientificity of trading decisions.
As foreign exchange traders' practical experience becomes increasingly rich and deepened, the problem of emotional trading will be gradually and thoroughly solved. The continuous growth of practical experience gives traders the ability to make accurate judgments quickly and decisively in the face of various complex market scenarios, and to take decisive action based on their pre-made trading strategies. This professional ability, which is honed based on a lot of practical experience, enables traders to control their emotions more effectively, participate in foreign exchange transactions in a more rational and calm manner, and then achieve stable investment returns and sustainable development in the fiercely competitive foreign exchange market.

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+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou