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

In the process of foreign exchange trading, investors must think deeply and refrain from blindly following others' opinions.

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As the saying goes, one should befriend the market trend and patiently wait for the trading opportunity. Many domestic technical analysis theories are actually replicas of Western theories, which are one-sidedly translated by some people with specific purposes using language differences, thus misleading investors to achieve their goal of obtaining benefits.
Regarding the position management in foreign exchange trading, it should be flexibly adjusted according to the trading stage. In the initial stage of verifying the trading system, a light position should be maintained because the effectiveness of the trading system has not yet been tested in practice. If heavy position operation is carried out at the very beginning, the risk is extremely high. In the system verification stage, the position can be gradually increased to test the capital capacity and fault tolerance. In the face of unexpected events such as geopolitical changes, the position should be adjusted in time. In daily trading, the position should be increased within a reasonable range to enjoy the benefits brought by the compound interest effect.
Foreign exchange trading needs to break the traditional thinking mode. A light position is not an absolute concept. Only the position that conforms to the trading system is the appropriate position. The discussion of a light position without a trading system is misleading and essentially a gambling behavior. A light position cannot ensure profit realization. Both a light position and a vacant position without a technical foundation cannot guarantee profit. A light position may lead to psychological relaxation, making traders not pay enough attention to mistakes and ultimately leading to losses. The popular trial position strategy in the market, that is, using a small position to test and then add positions, may increase the traders' paralysis psychology and be not strict enough for the opening operation. There do exist some certain opportunities in the market, and the key lies in personal insight and the degree of understanding of the market. The simplest strategy is not to participate in the opportunities that one cannot understand. If a highly certain opportunity is found, a heavy position attack should be carried out decisively.
From a scientific perspective, if one thinks that foreign exchange trading is worthy of a heavy position, then action should be taken; otherwise, do not participate. A light position is not equivalent to a reasonable position. Continuous light position operation cannot guarantee capital accumulation, and a simple heavy position operation will almost certainly lead to capital loss. If the market does not support the trading system, then no matter the position size, profit cannot be realized. The real comfort zone does not exist before the concept of trading cost is established. Some people think that a light position represents pattern and magnanimity. People with a light position are rational and conservative and will not conduct one-time transactions. People with a light position usually have trading rules and plans, and the profit expectation is reasonable. The future development of those with a light position depends on whether they continuously conduct light position trading, whether they keep learning and progressing, whether they are in the right direction, and whether they have a positive expected value system. If one only imitates others to conduct light position operation without one's own system, then this kind of light position only slows down the loss speed.
In foreign exchange trading, a heavy position is not equivalent to high risk, and a light position is not equivalent to low risk. After truly understanding foreign exchange trading, it will be found that there is no direct correlation between a heavy position and risk and loss. A heavy position and specific floating profit adding position techniques can help to efficiently use leverage and achieve capital growth. People with a light position usually do not lose money, and not losing money means making money, just a matter of more or less. The light position and heavy position in foreign exchange trading are relative concepts and should be defined according to personal economic ability, psychological state, emotional control ability and income level. A light position can accumulate capital through floating profit, but this depends on the overall trading layout. A heavy position may not necessarily bring high profits because the fluctuations of floating profit and floating loss may lead to premature liquidation or inability to hold. Foreign exchange trading is like a balance. Any change in any link will affect the result, and it is only a matter of time.

In the field of foreign exchange investment and trading, excessive obsession with pursuing precise buying and selling timings is usually regarded as a misunderstanding.

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When investors recognize that the foreign exchange investment and trading market is unpredictable, and approach from the perspective of fund management, taking risk control as the core and firmly controlling risks in their own hands to let profits develop naturally, this mindset change can bring a sense of sudden enlightenment and also help deeply understand the true connotation of "cut losses and let profits run".
In fact, the essence of foreign exchange investment and trading is not complicated, but the implementation process is full of challenges. After in-depth thinking and analysis, foreign exchange investment traders can find that every seemingly tortuous and circuitous path is actually a necessary path for growth. Those foreign exchange investment traders who can achieve stable profits generally go through a cyclical process from simple to complex and then back to simple. In foreign exchange investment and trading, achieving the unity of knowledge and action is crucial. If foreign exchange investment traders are deficient in trading cognition, then their behaviors and results will naturally be difficult to meet expectations, and continuous profitability will be difficult to achieve. Most people have no talent in foreign exchange investment and trading, so taking detours is a common phenomenon. Eventually, foreign exchange investment traders will realize that the real mental method of foreign exchange investment and trading lies in deeply understanding their own hearts. Because the core cognition of foreign exchange investment and trading deep in the heart is the key factor determining success or failure. If the cognition of foreign exchange investment and trading is not deep enough, even if the technology is superb, it will be difficult to achieve long-term profitability; on the contrary, if the cognition of foreign exchange investment and trading is in place, even if the technical level is average, it is possible to achieve long-term profitability. Foreign exchange investment and trading technology is only an auxiliary means. The real core lies in the mental method, that is, the thinking of following the trend. Understanding this point, investors will not panic and close their positions hastily or even change the trading direction when the price pulls back. Ordinary small-capital foreign exchange investment traders often tend to take profits when they see them. Although this mentality may bring profits in the short term, it may lead to losses from the perspective of long-term foreign exchange investment.
In foreign exchange investment and trading, if traders only rely on chart analysis and ignore fundamental analysis and market news, they may find that the information they obtain is already outdated. With in-depth exploration and research of the market, traders' chart analysis skills and understanding of trading will be improved. They will also gradually realize the importance of position control and build their own trading framework, clarify the rules of entering the market, exiting the market and fund management, so as to transform from short-term traders to long-term investors.

In the field of foreign exchange investment and trading, there are some common misunderstandings. From the technical level, one of the common misunderstandings is to compare the complexity of the trading model with its effectiveness, believing that simple models lose their effectiveness because they are too common.

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In addition, many foreign exchange investment traders believe that the market is always changing, so they need to update the model frequently, and once the trading strategy is known by others, it will lose its effect. In terms of mentality, some people wrongly attribute trading failures to their own insufficient efforts, such as insufficient research time, insufficient number of reports read or not staying up late enough, and wrongly believing that only by sacrificing rest time can they reflect their diligence. They also wrongly believe that those who go to and from work on time, are not focused at work and pursue a life of enjoyment do not deserve good results.
The transformation from certainty to probability and then back to certainty is a process of cognitive development for foreign exchange investment traders. In the initial stage, many foreign exchange investment traders regard moving averages, technical graphics, etc. as deterministic tools, believing that once a certain graphic appears, the market will develop in the expected direction. However, the actual situation is often not the case, which prompts foreign exchange investment traders to start examining the market from a probabilistic perspective and no longer one-sidedly expect the market to develop according to their own expectations. This kind of misunderstanding is relatively easy to identify.
However, when foreign exchange investment traders view the market from a probabilistic perspective, they may fall into another misunderstanding, that is, believing that the market is completely random and unpredictable, and can only rely on gambling and trying. At this stage, people emphasize strategies, execution, profit-loss ratio, the law of large numbers, etc., and regard them as the key elements of success, but ignore the orderliness and predictability of the market. Eventually, foreign exchange investment traders will realize that although the market seems disorderly, it actually contains orderly and predictable parts. The key lies in identifying these orderly and predictable market conditions, continuously tracking market changes, and flexibly adjusting their own judgments.
In life, foreign exchange investment traders form their cognition of the operation laws of the world through experience accumulation, and these cognitions become the standards for them to judge right and wrong. However, the causal logic based on subjective experience is not necessarily objective or inevitable. In foreign exchange investment trading, even if the judgments and reasoning of foreign exchange investment traders seem rigorous, the market trend may suddenly change; even if the system of foreign exchange investment traders seems to match the market trend, the actual winning rate of trading may be lower than expected.
Foreign exchange investment traders summarize the market operation rules from experience and expect the market development to be inevitable. For example, after the price breaks through an important resistance or support level, it is expected to continue to rise. However, the market trend often does not match the subjective expectations of foreign exchange investment traders, thus triggering mentality and uncertainty problems. In fact, the market only has a high degree of correlation, and there is no inevitable causal relationship.
Many foreign exchange investment traders like to conduct statistics after learning technical analysis, and give a causal linear concept to highly correlated rules. However, the market trend is affected by many variables. Price changes are the manifestation of value, and the factors affecting value are multifaceted. Foreign exchange investment traders cannot be omniscient and omnipotent. Therefore, the cognition of the market by foreign exchange investment traders may not be reliable, and the problem cannot be simply solved by using a causal linear thinking mode.
If foreign exchange investment traders change their thinking perspective, the development of the trend may be the result of the mixed influence of multiple events. The underlying cause is the factor that promotes the bullish and bearish expectations, has a high degree of correlation, and makes market participants reach a certain degree of agreement. In the seemingly disorderly trend, there are always some moments of orderly rules. These moments are the key to market selection and also the window for observing market rules. Therefore, the purpose of technical analysis should not be to find the specific causes and results of the trend, but to find the nodes of market selection. These nodes are the premise for entering the market and also the window for observing market rules. In this case, the thinking mode of foreign exchange investment traders should be probabilistic, and pay attention to the potential profit opportunities represented by highly correlated factors. Through technical analysis, foreign exchange investment traders should not pursue certainty, but deduce the possible trend direction and patiently wait for the market's choice and stop profit.

In the field of foreign exchange investment and trading, foreign exchange investment traders generally believe that technical analysis, fundamental analysis and trading psychology are the key pillars of investment.

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However, whether choosing a single path or cultivating all three aspects, from a long-term perspective, most traders often face the risk of losses or even margin calls. In the foreign exchange investment and trading market, the proportion of losers is quite high, and the probability of continuous profitability is extremely low. As for technical analysis in foreign exchange investment and trading, whether using various indicators, candlestick charts or trend lines, it is to a large extent speculative. However, a high-probability guess supported by technology does indeed have an increased chance of success compared to a situation without technology. In foreign exchange investment and trading, building positions in installments is relatively safe, but it is necessary to clearly recognize that relying solely on light positions is difficult to achieve financial freedom and may even be unable to meet the basic living expenses of families. For ultra-short-term foreign exchange investors, the view that the market can be regarded as an ATM just by relying on technology and execution power is wrong. If this view is correct, then in foreign exchange investment and trading, banks should recruit retired snipers because they already have the corresponding psychological qualities and only need training in trading technology. However, in reality, no banks, funds or institutions have taken such measures. In the process of foreign exchange investment and trading, as time goes by, people will find that fundamentals are also unreliable. Just like the technical aspect, it is full of chaos and difficult to accurately guess. Even if success is achieved in foreign exchange investment and trading, there is great uncertainty. Only when foreign exchange investment trading masters know insider information or insider data in advance will they have a greater chance of winning. Otherwise, their trading operations are not significantly different from those of ordinary investors.

In the field of foreign exchange investment and trading, entities such as sovereign institutions, foreign exchange banks, fund institutions, and market makers usually expect to obtain benefits from ordinary foreign exchange investment traders.

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Therefore, they claim to them that profit can be achieved through technical analysis or fundamental analysis. However, the result is that although many foreign exchange investment traders have become professionals in technical analysis and fundamental analysis, it is ultimately difficult for them to actually achieve profit targets. The fundamental reason lies in the fact that the methods they have learned are built on an insufficiently stable foundation from the initial stage. Even so, they are deeply trapped and unable to extricate themselves.
For the career of foreign exchange investment traders, confidence is extremely important. And the foundation of confidence lies in having at least one successful experience. Regrettably, those foreign exchange investment traders who are in an illusion have never had a chance of success. The core essence of foreign exchange investment and trading lies in the way of thinking rather than simple effort. Once the way of thinking is transformed, wealth will flow in continuously like water and be unstoppable.
In foreign exchange investment and trading, the most crucial thing is to have comprehensive cognition. It is necessary to have a comprehensive and in-depth understanding of the attributes of only a few dozen currency pairs in the market, just like being familiar with a person and knowing every move of theirs like the back of one's hand. After truly understanding these, the importance of trading techniques is relatively reduced, while position control and leverage control become even more important. What is especially important is waiting for opportunities. Patience, endurance, and extraordinary toughness become even more crucial at this time. In addition, when there are no opportunities, how to pass the boring time also becomes extremely important.

13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou