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

In financial investment trading, breakout trading techniques should never be used on instruments experiencing a consolidating trend. This applies to all investment products, including stocks, futures, and foreign exchange.

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In forex trading, investors must be aware that forex currencies, as a whole, are highly volatile. Central banks in major countries around the world frequently intervene in their currencies to keep them within a relatively narrow range, aiming to maintain monetary stability, foreign trade stability, and a stable financial policy environment. This has made forex trend trading difficult to implement over the past two decades, and the forex market has been stagnant.
In the forex market, high levels of consolidation are common, while extended breakouts and reversal breakouts are relatively rare. An extended breakout occurs when the price breaks out in the same direction as the original trend, with only a brief sideways correction. A reversal breakout, also known as a reverse breakout, occurs when the price moves in the opposite direction after a sideways correction. This is the key reason why breakout trading techniques are no longer applicable in forex trading.
I believe that investors with five to ten years of forex trading experience will undoubtedly agree with this view. Those who disagree are likely newcomers to the forex market. Time will eventually reveal to them that forex currencies are generally highly volatile, making breakout trading difficult to implement.

In the forex trading world, the core psychological challenge faced by small-capital traders engaging in long-term investments is the difficulty of maintaining long-term exposure to floating profits.

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The underlying root cause of this phenomenon is that these traders often lack sufficient capital reserves and have little experience with large-scale investment operations. Consequently, they are highly sensitive to and eager for small profits.
This trait makes them prone to the impulsiveness of quickly cashing in on gains, while also harboring a significant fear of potential market pullbacks and the resulting floating losses from holding their positions.
Thus, small-cap traders lack a natural financial advantage in terms of mentality. Instead, they are inherently vulnerable to the temptation of small, short-term profits, which significantly hinders the effective execution of their long-term investment strategies.
In forex trading, large-cap traders are able to hold onto floating profits for a long time when implementing long-term investments. This is closely related to their capital size and investment mentality.
These traders typically possess a strong financial foundation and extensive experience in operating large amounts of capital. Therefore, they are less concerned with short-term profits and lack the impulsiveness to rush to reap gains.
Furthermore, they are more resilient to market pullbacks and can rationally view the potential floating losses that may occur during their holdings.
Based on this, large-cap traders possess a natural financial advantage in mentality, effectively resisting the temptation of small profits and providing a solid psychological foundation for the smooth implementation of long-term investment strategies.

In the field of forex trading, complicating simple theories directly interferes with a trader's investment cognitive system.

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If market stakeholders deliberately obsess over a particular investment theory, creating confusion and obscuring previously clear logic, they are artificially increasing the difficulty of understanding. Driven by superstition and worship, some traders become entangled in it, losing their ability to discern the essence of trading.
As far as short-term trading is concerned, concepts like "buying precisely at the lowest point in an uptrend and closing at the highest point" and "selling precisely at the highest point in a downtrend and closing at the lowest point" exist only in theoretical hypotheses and are impossible to achieve in reality. Yet, many short-term traders spend years attempting to solve these impossible tasks through indicators and methodologies, effectively limiting themselves. These absolute goals are what all traders aspire to, but ultimately unattainable.
In short-term trading, if one can achieve the following strategies: "Buy at a relatively low point during an uptrend and close at a relatively high point," and "Sell at a relatively high point during a downtrend and close at a relatively low point," one is close to success, as achieving these goals can be achieved through a sound strategy.
In forex trading, greed is a common instinct among traders, and the key to success lies in overcoming this instinct. Unsuccessful traders are in the process of combating this human flaw—overcoming it leads to success, while failure leads to stagnation.

In forex trading, traders must be able to flexibly apply investment and trading theories and avoid mechanically applying them.

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Phenomena in stock trading offer a valuable lesson: Regarding trading when a stock price falls, there are two opposing viewpoints: "Buy more as the price drops" and "Close more as the price drops." These are conclusions drawn from different perspectives and practices. The former applies to well-known, globally dominant stocks, whose sudden flash crashes often present opportunities to increase holdings. The latter applies to lesser-known, junk stocks, which face the risk of liquidation, and closing positions during declines is essential.
Foreign exchange trading follows this same logic. Theories like "adding to positions on pullbacks during an uptrend" and "adding to positions on rebounds during a downtrend" hold true for long-term investments in the eight major global currency pairs. However, for a few junk currencies, these theories are no longer applicable, and forcibly applying them can lead to losses.
Just as technical analysis has its limitations, any trading theory has its scope of application. Traders must adapt flexibly to specific circumstances to better navigate the market.

In forex trading, investors must maintain a clear mindset and recognize that any technical analysis may be unfounded.

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Although some theories may appear logically sound, they are often difficult to implement in practice.
For example, during an uptrend, it's theoretically possible to buy at the lowest point and sell at the highest point; during a downtrend, it's theoretically possible to sell at the highest point and buy at the lowest point. However, these idealistic strategies are virtually impossible to achieve in reality. This belief is often held by novice forex traders and is undoubtedly naive, even gods or psychics couldn't achieve it.
Despite this, many novice forex traders spend years searching for so-called trading secrets, tools, or indicators, attempting to achieve these idealized strategies. However, a reasonable assumption is that if someone could truly achieve these goals, they would already be as wealthy as a nation. Clearly, this isn't something the average person can do. In fact, even the most extraordinary person would find it difficult to achieve. If someone could achieve this, the world would be filled with rich people, with no poor people left.
The truth is, greed leads to nothing.

13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou