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, the applicable boundaries of the breakthrough trading method need to be clearly defined: from a theoretical point of view, only when the price breaks through continuously without any retracement can a 100% winning rate be achieved, but this condition is almost impossible to meet in reality.

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The "hitting the board" model in the Chinese stock market is essentially the application of the breakthrough trading method. Short-term traders try to bet on the stock price to continue to rise and not to retrace in this way. But the actual situation is that the probability of this situation is extremely low. The effectiveness of this strategy is highly dependent on the market environment: hitting the board only has a certain operational value when the market is in an upward trend; if the market is in a downward trend, the winning rate of hitting the board will be greatly reduced.
In the past two decades, the breakthrough trading method has gradually been abandoned in the foreign exchange market. The core reason is that the trend of foreign exchange currencies has weakened. The world's mainstream central banks either implement low interest rates (even negative interest rates) or control exchange rates within a narrow range through frequent intervention. Since the bankruptcy of FX Concepts, a global foreign exchange fund, fund companies focusing on foreign exchange have almost disappeared. This phenomenon confirms that foreign exchange currencies lack clear trends. The lack of trends makes the breakthrough trading method lose its application premise. At present, foreign exchange currencies are more characterized by consolidation, and the trend is difficult to continue, making it difficult for the breakthrough trading method to work.

In foreign exchange investment transactions, traders should focus on long-term trends rather than short-term fluctuations, and pay attention to overall returns rather than single losses.

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At the same time, traders should ignore uncertainty and focus on the certainty factors in uncertainty. This strategy helps traders stay calm and rational and avoid making impulsive decisions due to short-term fluctuations.
Traders must understand that no matter how deeply they analyze the fundamentals, the trend of currency pairs is still uncertain. Similarly, no matter how they perform technical analysis, they cannot be sure whether there is a main force entering the market. The market's reaction and the interpretation of news are also full of uncertainty. Therefore, although traders can conduct various analyses, they cannot achieve 100% certainty in the end.
Despite this, many traders still try to get 80% to 90% certainty through over-analysis. This practice often leads to traders being overconfident and ultimately suffering heavy losses when the market trend reverses or retracements. In fact, all major losses are often caused by traders being overconfident when entering the market, thinking they are sure, but being caught by the market.
So, how do traders conduct foreign exchange investment transactions in uncertainty? The answer lies in an excellent foreign exchange investment trading system. After countless transactions, an excellent trading system is profitable as a whole. This confidence in profitability comes from overall performance, not from the confidence in a particular transaction. It is normal to have a few losses, as long as the overall profit is greater than the loss, the trader will still make money in the end. This overall profitable strategy can not only help traders to move forward steadily in a complex and changing market, but also give traders greater psychological support, so that they can remain calm and rational in the face of market fluctuations.

In the field of foreign exchange investment and trading, traders' obsession with technical analysis is essentially the result of the misjudgment of market rules and the driving force of psychological needs.

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Most traders believe that the foreign exchange market has inherent operating rules, and this rule can be decoded through technical analysis. This cognition prompts them to indulge in the study of technical indicators, trying to find a way to make stable profits through pattern recognition, trend tracking and other means. This obsession with "certainty" is the core driving force of obsession.
The occasional correctness of technical analysis will form a positive feedback loop. When technical signals occasionally bring profits, traders will selectively ignore failure cases and attribute success to the effectiveness of technical analysis, thereby continuously strengthening their dependence on it and falling into the cognitive misunderstanding of "technology first".
In addition, technical analysis can provide psychological support for traders. In a market full of unknowns, finding entry points through technical analysis can give traders the illusion that "decision-making has a basis", satisfying their psychological need for a sense of security. Even if this sense of security lacks an objective basis, it can relieve psychological pressure during trading.
In general, foreign exchange trading is like solving a case. Technical analysis is an important clue but not all. It is not omnipotent, but it is not dispensable either - it should be used as a reference dimension, not the only reliance of trading.

In the field of foreign exchange investment and trading, an excellent investment and trading system is not limited to trading technology or buying and selling point judgment. This is a serious cognitive error of many traders.

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A high-quality trading system must include three key dimensions: The first key dimension, which is also the most core, is the protection of the original capital. The specific requirement is that traders must keep 80% of the principal, which is the embodiment of the concept of "maintaining the principal first". The principal is the premise of trading. If the principal shrinks significantly, the trading will lose its basis for survival.
The second is to adopt a low-risk strategy. For example, a long-term strategy with a light position belongs to the low-risk category, while a short-term strategy with a heavy position belongs to the high-risk type. Only under the dual protection of capital preservation and low risk, technical analysis is worth exploring; if these two points cannot be met, even if you deeply study the fundamentals, the dynamics of the main force or technical details, it will fail due to lack of foundation, and the trading system will eventually fall into a loss dilemma due to uncontrolled risks.
Finally, stick to the trend. Trading with the trend can effectively improve the winning rate. If the winning rate increases, the probability of profit will increase accordingly. Trading against the trend has never been proven to be a feasible way.
When the trading system has the characteristics of capital protection, low risk and the principle of following the trend, it is a complete and excellent trading system.

In foreign exchange investment transactions, traders should not follow the hype rhythm of news topics and have emotional resonance or participate in them, because news has no direct relationship with ordinary investment traders.

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The criteria for traders to enter the market should be based on their own unique and proven investment system, rather than the rhythm of news topic hype. The most important thing every day is to execute according to your own unique investment system, rather than over-analyzing, judging or predicting future trends. The correct approach is to not analyze, judge, care about, or pay attention to any news, and maintain a "don't care" attitude. Based on my 20 years of experience, if traders invest and trade according to the news, they will most likely be trapped quickly.
News forecasts, opinions and views other than your own investment system can only be used as a reference. The final decision should only depend on the trader's own investment judgment. Losses or profits are closely related to the trader's cognition, personality, style of behavior and social experience. In other words, whether it is a win or a loss, the trader's characteristics have largely determined it. This has a bit of a "natural" taste in it. Some people are born to be suitable for foreign exchange investment and trading, while others are not. Only by doing what suits you can you succeed. This self-awareness and adaptability are the key for traders to gain a foothold in a complex and changing market.

13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou