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, deep insight into and practical adherence to the principle of minimalism are the core elements of building a sustainable and profitable trading strategy, so as to achieve stable economic benefits through trading and meet the needs of family living expenses, which has both theoretical and practical feasibility.
In the actual operation of foreign exchange investment, if investors of the technical analysis school can accurately identify the systemic risks hidden behind the news, this cognitive change undoubtedly marks the advancement of their investment thinking from perceptual to rational, which is an important manifestation of the maturity of investment concepts. However, after experiencing major losses, some investors often adopt the strategy of blindly superimposing new indicators on the traditional technical analysis indicator system. From the perspective of financial analysis, this approach not only fails to touch the core logic of the trading strategy, that is, the principle of "the great way is simple", but also increases the complexity and uncertainty of trading decisions. It is a misunderstanding that the technical analysis school is prone to in investment practice. "Keep It Simple Stupid" (KISS principle) is a classic concept in the financial field. It emphasizes that when building trading strategies, we should abandon complexity and redundancy and pursue the simplest and most effective decision-making model to reduce information noise interference and improve the accuracy of trading decisions.
In foreign exchange trading practice, when investors' trading analysis charts only retain the original candlestick chart (i.e. naked K) and abandon other types of technical indicators, it shows that their trading concepts have been sublimated to a highly condensed state, and they have achieved a deep grasp of the essence of market operation laws. At this time, even if investors have not yet emerged in the financial market and obtained huge wealth returns, this is usually attributed to the limitation of capital scale or the failure to capture the market trend that fits their own trading strategy. However, from the perspective of the stability and sustainability of long-term investment returns, relying on mature trading strategies to maintain the family's daily economic expenditures has a solid strategic foundation and market adaptability.
In foreign exchange investment trading, using stress-free funds for trading usually leads to slower fund growth, but can help traders maintain a longer trading career.
In contrast, stressed funds may bring rapid growth in the short term, but often shorten the trader's trading cycle. In this case, investors need to weigh carefully and make wise choices.
The source of funds for foreign exchange investment traders has a significant impact on their trading style and investment performance. In the financial market, there are sharp and experienced funds, and there are relatively inexperienced funds. However, no matter what profit method a trader adopts, the source of funds itself is not the key factor in determining the success or failure of their trading.
For a company serving high net worth clients, there are many complex constraints in its operation. The company must fully consider the expectations of customers for investment returns, because monthly investment performance will directly affect the company's survival. Once investment performance declines, investors are likely to redeem funds. Even if investment operations are going well, the company will sooner or later need to introduce new funds to maintain business expansion. There are many sources of trading capital, the simplest of which is own funds. When using own funds for trading, traders can operate completely according to their investment preferences. However, when operating other people's funds, traders' operating freedom will be limited. Traders must not only fully evaluate the various possible results of the transaction, but also fully consider the possible reactions of customers.
When using own funds for trading, traders have less psychological burden due to the lack of external pressure, but the accumulation of funds is slow, and it is difficult to achieve brilliant achievements that are enough to leave a name in the industry within a limited time. When operating customer funds, traders are under external pressure and it is difficult to cope with it easily, but the accumulation of funds is fast, and it is possible to quickly become famous in their careers.
In-depth analysis of stop loss technology in the field of foreign exchange investment and trading, stop loss rules and strategies in foreign exchange investment and trading may be traps, and stop loss rules and stop loss strategies in foreign exchange investment and trading are deceptive brainwashing.
In the field of foreign exchange investment and trading, the reasons for the widespread use of stop loss technology are worth in-depth exploration. From the perspective of the profit model of traders, it has promoted the popularization of stop-loss technology to a certain extent. Traders mainly make profits by collecting transaction commissions, and traders' frequent buying and selling operations undoubtedly create more commission income for traders. Based on this, the education experts hired by traders usually emphasize the importance of stop-loss technology and teach it to traders as a regular trading strategy. This education model has prompted stop-loss operations to gradually become a common behavior among foreign exchange investment traders.
However, in the foreign exchange market, many traders blindly apply stop-loss technology and lack independent thinking ability. This indiscriminate and generalized application method reflects the blindness of some traders in the trading decision-making process. It should be pointed out that there are specific prerequisites for not setting stop-loss. For example, if traders can accurately grasp and follow the market trend without opening positions against the trend and without conducting short-term reverse transactions, then they can consider not setting stop-loss.
If traders frequently open positions against the trend, setting stop-loss is extremely critical. But the actual situation is that the stop loss points set by traders are often easily triggered by market fluctuations, which leads to frequent stop losses. In this case, traders not only face the risk of capital loss, but also have a negative impact on their trading confidence. Frequent stop losses may put traders into a dilemma of seemingly reasonable trading strategies, but in fact it is difficult to achieve the expected returns. Therefore, when applying stop loss techniques, traders must be more cautious and need to make comprehensive considerations based on market trends and personal trading strategies, rather than blindly following the trend.
Long-term and short-term response methods when trend pullbacks in foreign exchange investment transactions, long-term and short-term processing strategies when trend pullbacks in foreign exchange investment transactions.
In the field of foreign exchange investment transactions, the reasons for trend pullbacks and the handling methods of short-term and long-term pullbacks have always been important issues of widespread concern in the industry.
The main reasons for trend pullbacks in foreign exchange investment transactions are as follows:
Decrease in trading activity: At the closing stage of the foreign exchange market, the number of market entities participating in day trading has decreased significantly, and the market trading activity has dropped sharply. Due to the lack of sufficient trading power to maintain the price trend, the price trend has been pulled back.
Weakened data influence: When the foreign exchange market closes, the influence of previously released important data on the market has been greatly weakened. The market lacks clear driving factors, and trading activities have stagnated, which in turn leads to a pullback in price trends.
Investors take profits: At the closing of the foreign exchange market, a large number of investors participating in day trading choose to close their positions at a profit, and a large amount of funds withdraw from the market, causing trading activities to almost stop, and the price trend has subsequently pulled back.
How to deal with long-term pullbacks in foreign exchange investment transactions: When the market trend shows a strong trend, at the closing time of the day, one-third of the position can be retained as a long position, with the aim of making full use of the trend and achieving continuous growth in profits.
How to deal with short-term retracements in foreign exchange investment transactions: If the market trend is in a consolidation state for several days or weeks, you should avoid holding positions at the close of the day and lock in profits in time. Because holding positions during the consolidation stage is very likely to cause profit losses.
In the process of foreign exchange investment transactions, being able to stop profit operations on some positions at key positions is not only a wise decision, but also has a certain degree of luck.
In the field of foreign exchange investment and trading, the iterative evolution of network technology is gradually weakening the information advantage enjoyed by hedge funds.
Looking back to the past, when the network infrastructure was not yet perfect, hedge funds relied on their unique information channels, covering non-public information such as insider information, to obtain obvious profit advantages in foreign exchange investment and trading activities. Since the 1980s, illegal profit-making behaviors such as insider trading, order manipulation, and misleading research reports have been common in the foreign exchange investment and trading market. The inherent logic of these behaviors is that once the foreign exchange investment trading subject has exclusive information, it can capture profit opportunities in market price fluctuations. From the market empirical data, most of the excess returns have a significant correlation with information advantages over a long period of time.
For the commercial purpose of increasing exposure and attracting traffic, some media often over-promote the cases of hedge funds creating success with excess returns, causing such stories to spread widely in the investment market and become part of public cognition. In the long-term dynamic game between regulators and illegal traders, although insider trading subjects are occasionally dealt with according to law, in most cases, violators can always take advantage of loopholes in regulatory rules or the lag of regulatory technology to cleverly circumvent regulatory measures and always walk on the regulatory boundary.
In recent years, with the vigorous development of financial technology, some emerging financial technology companies have actively intervened and are committed to breaking the information monopoly pattern, building a more fair and transparent market ecology, and promoting the equality of hedge funds and ordinary investors in the dimension of information acquisition. In the practice of foreign exchange investment and trading, information sharing between large capital trading subjects has become the industry's default common practice. They use business social activities, instant messaging tools and other channels to exchange investment strategies and market intelligence. This behavior has been deeply embedded in the market operation mechanism and has become an important part of the market norm.
So why is the advantage of hedge funds that once relied on insider information to obtain profits gradually declining? From a comprehensive analysis of investment theory and market practice, many excess returns are not simply due to information asymmetry or illegal means. Fund managers deeply explore the company's fundamental information, use a multi-dimensional analysis framework, and combine diversified trading strategies, such as quantitative trading strategies and macro hedging strategies, which are the core driving factors for achieving excess returns. For the same market event or data information, different market participants will have different expectations and judgments based on their own risk preferences, investment concepts and analysis models, and then show significant differentiation in investment decisions and final investment performance. This requires investors to build a market analysis framework and investment decision-making system with their own characteristics to accurately understand and grasp market dynamics.
At present, the innovation of information dissemination technology has brought information sharing to an unprecedented level. The popularization of the Internet has greatly expanded the breadth and depth of information dissemination and increased the rate of dissemination. In such a market environment, foreign exchange investment trading entities must face a reality: when massive amounts of information flow rapidly in the market, whether excess returns can be obtained depends more on the trading entity's own information processing ability, analytical judgment ability, and unique investment insights.
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