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

In the field of foreign exchange investment and trading, participants often raise the following doubts: Why should we not add positions when we are losing money?

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In fact, in the actual operation of foreign exchange investment and trading, it is not a key factor to simply use floating losses or floating profits as a basis for determining whether to add positions. The core support for the decision to add positions lies in the accuracy of the judgment of the macro market trend. Even if the judgment of the macro market trend is accurate, in the short term, the price will fall back due to market fluctuations, thus causing floating losses. At this time, the implementation of adding positions is still reasonable and correct from a strategic perspective. As long as the macro market trend is accurately grasped, from a theoretical point of view, there is a possibility of profit when entering the market and opening a position at any time point. However, it should be pointed out that this strategy may not be widely applicable to small and medium-sized investors and retail investors with insufficient capital reserves due to the limitations of risk tolerance and capital management.
When the price trend of the foreign exchange investment market is highly consistent with the direction predicted by investors based on fundamental analysis and technical analysis, and investors have a firm grasp of the internal logic of market operation with deep professional knowledge and rich practical experience, the floating loss or floating profit status of the investor's account at this time has no direct causal relationship with whether to execute the position increase operation. In this case, if the investor has sufficient capital reserves and the risk tolerance and capital management plan allow, even if it is in a floating loss state, it should decisively and firmly choose to increase the position.
In summary, foreign exchange investors who usually ask questions such as "Why can't I increase my position when I lose money" are most likely novices who are new to the field of foreign exchange investment and trading and lack professional knowledge and practical experience, or novice investors with limited capital scale and have not yet established a complete investment philosophy and trading system.

In the actual operation of foreign exchange investment and trading, the issue of whether to increase positions in a loss situation is undoubtedly a core decision that requires careful consideration based on deep professional knowledge, rich practical experience and accurate market insights.

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From the perspective of general trading logic, if the trading position is in a loss state, rashly increasing positions without rigorous risk assessment and accurate market judgment is likely to cause investment losses to expand exponentially. This is mainly due to the fact that the loss phenomenon is likely to be an external manifestation of deviations in the initial trading decision in terms of fundamental analysis, technical analysis or trading psychology control, which means that the actual market operation trajectory is contrary to investors' expectations. However, the foreign exchange market is complex. Under certain specific market structures and market evolution trends, it is still necessary to use professional analysis frameworks and tools to deeply explore and carefully judge various influencing factors.
When the price trend of the foreign exchange market hits a historical high, for the long positions established during this period, if losses occur, from the perspective of overbought and oversold theory in technical analysis and professional risk management, it is usually not recommended to implement position increase operations. This is because the market is likely to have entered the overbought range at this time, market sentiment is overly excited, and the risk of price correction has risen sharply. If you are not careful, you may fall into a deep trap. However, if investors rely on solid fundamental research, such as in-depth interpretation of macroeconomic data, accurate grasp of geopolitical situations, and forward-looking judgments on the direction of the central bank's monetary policy, and identify this as an opportunity to start a long-term strategic layout, and build new long positions at historical highs, then when the position suffers floating losses due to short-term market fluctuations, they can prudently consider moderate position increase based on a comprehensive consideration of their own fund management plans, risk tolerance thresholds, and potential subsequent market trends. By cleverly using professional techniques such as pyramid adding positions and equal adding positions, investors can effectively dilute the cost of holding positions and lay a solid foundation for obtaining more lucrative profits in the future under the strict conditions of strong capital reserves, complete risk control system and accurate judgment of the medium and long-term market trends.
Similarly, when the market price trend falls to a historical low, for the short positions established during this period, if there is a book loss, generally speaking, short positions should not be added easily based on the consideration of the risk of market bottom reversal. However, if investors use professional technical analysis methods, such as accurate identification of Fibonacci retracement levels, key support and resistance levels, and various technical indicator divergences, combined with the downward trend of the macroeconomic cycle and the deterioration of industry fundamentals, it is expected that the market will enter a long downward channel and new short positions will be established at historical lows. Then, when the position suffers a floating loss, under the premise of strictly following the principles of fund management and risk control strategies, adding positions may become a reasonable strategy to optimize the investment portfolio and increase potential returns. Of course, the successful implementation of this strategy is highly dependent on investors' refined management of capital flows, accurate prediction of market trends, and effective control of various risks.
For small and medium-sized investors with limited capital, they are limited by capital size, risk tolerance, and professional trading skills. When facing a loss situation, they often do not have the objective conditions and subjective ability to implement position-increasing operations from the perspective of professional capital management and risk diversification theory. Such investors should put risk management first, and avoid the potential crisis of excessive concentration of funds in a single position due to blind position-increasing by setting stop-loss and stop-profit points scientifically and reasonably, and using diversified investment strategies to build a diversified investment portfolio.
In summary, in foreign exchange investment transactions, the core decision-making basis for deciding whether to increase positions in a floating loss state is highly focused on the investor's financial strength, risk control ability, and comprehensive judgment of multi-dimensional market factors. Only when investors have sufficient funds, risk tolerance, mature trading strategies and clear, accurate and forward-looking predictions of market trends, can adding positions become a rational choice that meets investment goals and optimizes investment performance.

In the field of foreign exchange investment and trading, there is a complex and subtle relationship between fear and greed.

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In the foreign exchange investment and trading scenario, the fear and greed behind the phenomenon of not daring to enter the market are specifically manifested as follows:
First, when the market is in a downward process, even if the market has stopped falling and turned to rise, investors still dare not buy. The reason for this is that on the one hand, fear is at work, worrying that the price will fall again; on the other hand, greed is driven by fear that the purchase price is too high.
Second, when the market is in a downward process, even if it has stopped falling and turned to rise and is showing a trend of repeated upward rise, investors still dare not buy. This is because greed makes them worry that the purchase cost is too high, while fear makes them afraid that the price will fall again.
In the practice of foreign exchange investment and trading, some investors will think that they will suffer losses if they do not buy when the price is low, and then hope to wait for the opportunity of a second bottom. Admittedly, this strategy may be applicable in certain specific market conditions, but in many market trends, the market will not give investors such a second entry opportunity.
In essence, the fear and greed in foreign exchange investment and trading are rooted in investors' lack of knowledge of future market trends. When investors build a set of mature trading logic and perfect trading system of their own, and formulate long-term investment plans and strategic deployments, they can effectively overcome the interference of fear and greed to a certain extent.

In the highly complex and uncertain field of foreign exchange investment and trading, simply relying on reading books to build a knowledge system has exposed many limitations in actual application scenarios.

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From the perspective of behavioral finance, investment psychology, and trading strategy optimization, compared with reading books, allocating time to in-depth review of past trading experiences can more effectively improve investors' decision-making ability and trading performance. The review process involves quantitative analysis of trading data, psychological analysis of trading behavior, and dynamic backtracking of the market environment. Through these systematic operations, investors can dig out key information hidden in the trading history and provide strong support for subsequent trading decisions.
To be clear, personal wealth accumulation is the result of the interweaving of multiple factors, and is by no means determined by a single variable of reading books. From the income distribution pattern at the macroeconomic level to the career choice, financial planning, and risk preference at the micro-individual level, all factors play an indispensable role in the process of personal wealth accumulation. Therefore, whether an individual is in poverty or accumulates wealth cannot be simply attributed to whether or not they participate in reading behavior.
In the practical process of foreign exchange investment and trading, the future wealth creation ability of investors essentially depends on their comprehensive abilities. This comprehensive ability covers multiple dimensions, including keen insight into the macroeconomic situation, in-depth analysis of financial market data, efficient risk management strategy formulation, and flexible transaction execution. Simply immersing oneself in book knowledge, due to the lack of effective connection with actual market dynamics, it is difficult to substantially improve investors' coping ability and decision-making level in a real trading environment. If you want to quickly and steadily integrate into the field of foreign exchange investment and trading, the key is to build an organic bridge between theoretical knowledge and practical operations. This not only requires investors to deeply participate in a large number of trading practices, accumulate rich first-hand experience in practice, and master various operating skills such as position management, stop loss and stop profit setting, and trading signal recognition, but also puts forward extremely high requirements on investors in information processing. Investors need to have the ability to accurately screen out effective information from massive, complex and dynamically changing market information, and use advanced technical means such as data mining and machine learning to build a comprehensive, three-dimensional and forward-looking market cognition framework.
It must be deeply recognized that the foreign exchange investment and trading industry has significant practicality and uniqueness. Its market environment is affected by multiple complex factors such as global macroeconomic policy adjustments, geopolitical evolution, international capital flows, and financial technology innovation, showing a high degree of nonlinearity and unpredictability. This characteristic determines that the industry cannot be fully mastered only through the traditional knowledge transfer model. Even if there are cases that seem to be able to be successfully taught, after in-depth analysis, it will be found that a large part of them only remain at the theoretical level, lacking effective solutions and coping strategies for complex problems in actual trading scenarios. The acquisition process of foreign exchange investment trading is highly similar to that of swimming and driving skills. Both belong to the field of skill-based knowledge. Practitioners need to gradually form muscle memory and intuitive judgment through continuous trial and error, summarizing experience and lessons in the long-term and repeated practice process, and then achieve mastery of relevant skills. This practice-based knowledge acquisition and internalization process is far from being achieved simply by oral teaching.

In the field of foreign exchange investment and trading, which is full of high uncertainty and complexity, even if investors have formed a relatively clear cognitive framework for market conditions and trends through comprehensive analysis of multi-dimensional information such as macroeconomic indicators, geopolitical situations, technical analysis charts, and market sentiment, they must always adhere to the basic risk management principle of light position operation.

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It should be emphasized that in the dynamic evolution of foreign exchange investment and trading, subjective understanding of market conditions and trends cannot be directly equated with accurate and objective judgment. From the perspective of behavioral finance and investment decision-making theory, the so-called "understanding" of market conditions and trends is essentially a forward-looking prediction of future market trends and market trends by investors based on their own accumulated knowledge system, past trading experience, and real-time market information, using quantitative analysis models and qualitative analysis methods. However, since the foreign exchange market is affected by many complex factors such as global macroeconomic policy adjustments, international capital flows, unexpected events, and behavioral biases of market participants, this forecast result only represents a possible inference under the current information set, and is by no means a deterministic mapping of future trends. It naturally contains a certain degree of uncertainty and risk exposure.
From the objective perspective of market microstructure and price fluctuation theory, any price high point in the foreign exchange market can only be defined as a staged high point in a specific market cycle and trading scenario. Given the high liquidity, leverage characteristics and information asymmetry of the foreign exchange market, the market price trend may reverse at any time due to the impact of new information, changes in investor expectations or reversal of capital flows. Therefore, scientific and reasonable market forecasting is essentially a process in which investors use advanced data analysis tools, risk assessment models and a deep understanding of the logic of market operation to estimate the probability distribution of future market trends based on the information they have mastered. Different forecast results differ only in the degree of probability of occurrence, and in a complex adaptive system such as the foreign exchange market, there is no absolutely deterministic forecast conclusion.
In the practical operation of foreign exchange investment transactions, the comprehensive performance achieved by investors throughout their investment career is the result of systematic accumulation of the frequency distribution of successful transactions, profit margins, and risk control effects through countless trading trials and errors, strategy optimization, and continuous learning and adaptation to market dynamics. This process is by no means dependent on the accidental success or failure of one or several isolated transactions. If investors rashly adopt a heavy position strategy during the transaction, once they encounter extreme market conditions, black swan events, or their own trading decision-making errors, they are likely to suffer devastating losses due to excessive exposure of funds, and then lose the ability and capital base to continue to participate in transactions in the market.
For senior foreign exchange investment traders with profound professional qualities, superb professional skills, and rich trading experience, they have deeply realized the core essence of risk management in long-term market practice, and are more inclined to adopt a stable trading strategy, gradually accumulate profit points through refined risk control measures, and achieve steady asset appreciation, rather than adopting an aggressive heavy position strategy to pursue short-term huge profits. In the dynamic process of foreign exchange investment and trading, both increasing and decreasing positions should be regarded as dynamic risk control measures based on risk-return ratio assessment, market trend judgment and fund management planning. The so-called "star" foreign exchange investment traders who have become famous in a short period of time by relying on a few lucky transactions often find it difficult to survive in the long-term market fluctuations and cycles due to the lack of systematic understanding of market risks and long-term stable trading strategy support maintaining a stable investment performance in the rotation of periods. In sharp contrast, those "longevity" traders who can stand the test of time in the foreign exchange market and make long-term stable profits rely on their deep insight into market rules, perfect trading systems, strict risk control disciplines and long-term continuous trading strategy optimization, thus creating an immortal investment performance legend.
In addition, long-term foreign exchange investment and short-term foreign exchange trading represent two trading styles and investment philosophies with significant differences. From the perspective of the time dimension and market adaptability of trading strategies, long-term foreign exchange investment is actually an organic combination of a series of short-term trading entry points with significant risk-return advantages captured at different time nodes and based on different market scenarios. However, this key market operation logic and trading strategy points are often ignored by the majority of investors in the actual foreign exchange investment and trading process due to the common short-sighted behavior of investors, the limited cognition of long-term market trends and the singleness of trading strategies, thus missing the opportunity to achieve long-term and stable asset appreciation through the comprehensive use of long-term and short-term trading strategies.

13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou