---

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, there are some common knowledge that all investors should be familiar with and follow, namely, following the trend, low risk, protecting the principal and a good mentality. These elements constitute the core consensus of foreign exchange investment and trading.

---

Trend-following trading in foreign exchange investment can be divided into three levels: large, medium and small according to the market fluctuation cycle, which also determines the choice of chart cycle by investors. Following the big trend can refer to the monthly chart, weekly chart and daily chart, which is suitable for investors pursuing long-term trends; following the medium trend relies on the 4-hour, 2-hour and 1-hour charts, which is suitable for traders who grasp the medium-term market; following the small trend uses the 1-hour, 15-minute and 5-minute charts to capture short-term fluctuations. Facts have proved that following the trend is the key to profitability, and trading against the trend often fails to achieve ideal returns.
Risk control is closely related to the trading cycle. Although large-cycle trading can grasp the big trend, it faces higher risks; medium-cycle trading has moderate risks; small cycles are more conducive to risk control. For foreign exchange traders who are committed to long-term value investment, adopting a light position strategy and diversifying risks through multiple small transactions can effectively avoid the risks caused by cycle selection.
The preservation of principal is crucial for foreign exchange investment traders. If foreign exchange investment is taken as the main profession, the principal is the core capital for participating in market competition. Once the principal is damaged, subsequent investment will face huge challenges. However, if foreign exchange investment is only a sideline and there are other stable sources of income, the ability to withstand principal losses will be relatively strong.
In foreign exchange investment transactions, the importance of mentality and psychological quality cannot be ignored, and even surpasses trading technology and capital scale. A good trading mentality requires long-term cultivation and accumulation. It is worth noting that middle-aged investors who have transformed from traditional industries have natural advantages in trading mentality and psychological quality with their rich life experience. They are often more decisive in trading decisions, which helps them to accumulate wealth in foreign exchange investment, while for young investors who lack experience, this aspect requires more time and energy to hone.

In the complex system of foreign exchange investment and trading, position management strategy is the core factor that affects the success or failure of investment.

---

For short-term foreign exchange traders, heavy positions are often the root cause of failure, while light positions are the cornerstone of stable trading. It can even be said that light position strategy can effectively resolve many risks and challenges in the trading process.
From the perspective of trading practice and market rules, investors who have been profitable in the foreign exchange market for a long time have shown significant characteristics in their trading behavior - about 90% of their transactions adopt light position strategy. This strategy enables them to maintain the ability to respond flexibly in market fluctuations and effectively control risks. In sharp contrast, investors who have been in a state of loss for a long time choose heavy positions in up to 90% of their transactions.
The risk of heavy positions is that although it may bring high returns when the market conditions are favorable, it cannot withstand the impact of adverse market changes. Once the market trend goes against expectations, heavy position traders will face huge capital losses, and such losses are often difficult to recover, and ultimately they can only fail in investment.
In essence, heavy positions are a very risky trading behavior, which puts investors in a high-risk situation. Even if they have mastered advanced trading techniques, it is difficult to guarantee investment safety in the face of the risks brought by heavy positions. Some foreign exchange traders have cognitive biases and believe that light positions have limited profit margins and it is difficult to achieve a substantial increase in wealth. However, in the field of foreign exchange investment, survival is the primary goal. Only by ensuring that they can survive in the market can they have the basis for discussing the scale of profits. Compared with the outcome of bankruptcy caused by heavy positions, the stable profits brought by light positions may seem meager, but in fact they are more sustainable.
For long-term foreign exchange traders, even if they choose to invest in highly advantageous areas such as historical tops or historical bottoms, they may fail due to mistakes in position layout, and this mistake usually stems from excessive initial positions. When the position is too heavy and the investment is profitable, investors often close the position prematurely due to greed and fear of profit-taking, resulting in the failure of the carefully planned long-term position layout to achieve the expected return; when the position is too heavy and faces losses, although it is a common strategy to reduce risks by flattening costs in long-term investment, the cost flattening operation cannot be effectively implemented due to insufficient funds available due to the heavy position. Once the market trend continues to deteriorate, investors will eventually be forced to stop losses and exit, making the long-term investment layout fall short.
In summary, foreign exchange traders should establish a correct investment philosophy, have the courage to choose to do difficult but correct things, be friends with time, and realize wealth appreciation through long-term accumulation. In short-term trading, strictly follow the strategy of light position, follow the trend, and stop loss, and gradually accumulate long-term wealth through small daily profits; in long-term investment, also adhere to the principle of light position and follow the trend, do not pay too much attention to short-term fluctuations, do not stop losses easily, patiently accumulate long-term positions, and wait for the market to be ripe to obtain more generous investment returns.

In the arena of long-term foreign exchange investment, historical tops and historical bottoms are excellent investment areas, and many investors expect to achieve substantial wealth appreciation here.

---

However, the reality is often not satisfactory. Many investors fail after careful layout. After in-depth research, it is not difficult to find that overweight positions are the core crux of these failures.
Let's compare and analyze the two strategies of overweight positions and light positions. When long-term foreign exchange traders choose to layout with heavy positions, once the market develops in a favorable direction, the rapidly accumulated profits in the account will become a "double-edged sword". On the one hand, profits bring joy; on the other hand, they also stimulate the greed of investors. Driven by this emotion, investors often close their positions too early, giving up the greater profits that may be obtained in the future, making the originally planned long-term investment layout come to nothing. For example, when the market trend has only moved a short distance, investors are afraid of losing their immediate profits and rush out of the market, not knowing that a bigger market is still to come.
When the position is too heavy and suffers losses, the situation is even more difficult. The unwillingness to lose money will make investors choose to hold on to their positions. If leverage is used, even if it is a low leverage, it will quickly erode the account funds when the market fluctuates in the opposite direction. At this time, investors not only have to bear the loss of funds, but also face huge psychological pressure. Once the psychological defense line is defeated, even if the forced liquidation conditions have not yet been met, they will take the initiative to close the position due to the inability to withstand the pressure, resulting in the failure of long-term investment layout.
On the other hand, the advantages of the light position layout strategy are very obvious. By continuously arranging positions with light positions, the amount of profit each time is relatively small, which will not have a great impact on investors' psychology, and it is difficult to trigger greed, prompting investors to hold positions firmly. This long-term approach allows investors to gradually accumulate positions in market fluctuations and patiently wait for the full development of market trends, so as to better achieve long-term investment goals.
For long-term foreign exchange investors, although low-leverage positions can guarantee investment security to a certain extent, a good mentality is also indispensable. Investors with a bad mentality may be out of the market prematurely due to panic or greed even if they adopt low-leverage positions. Therefore, while paying attention to position management, investors should also pay more attention to the cultivation of mentality, cultivate a strong heart, and be able to remain calm in the investment process. Only by combining a reasonable position management strategy with a good mentality can you succeed in long-term foreign exchange investment and achieve steady growth of wealth.

In the field of foreign exchange investment and trading, the importance of position management is self-evident. Excessive positions are often the key factors that lead to the failure of trading technology and deformation of operations, and its essence is that the mentality of investors is distorted due to capital pressure. Behind this phenomenon, there is a strict logical connection.

---

From the perspective of market judgment, the reason why many foreign exchange investment traders are entangled in whether it is a true breakthrough or a false breakthrough is the capital risk pressure brought by excessive positions. From the perspective of theory and trading strategy, it is a reasonable and scientific choice to conduct short-term breakthrough operations at the previous high and low positions. However, when investors hold too many positions, every price fluctuation may have a significant impact on the account funds, causing them to worry too much about the authenticity of the breakthrough. Light position operation can break this dilemma. With a light position strategy, if a real breakthrough is encountered, investors can easily close their positions according to the established strategy; if a false breakthrough leads to floating losses, as long as the overall trading direction is correct, they can hold it as a short-term swing position and wait for the opportunity to make a profit. Due to the light position, the impact of capital fluctuations on the mentality is small, and investors can remain calm and respond rationally to market changes, and will not blindly operate due to pressure.
The choice between left-side trading and right-side trading is also deeply affected by position factors. Short-term operations at the previous high and low positions, whether left-side trading or right-side trading, have their theoretical basis and rationality. However, too heavy positions will make investors worry a lot when making decisions. Because once the judgment is wrong, there may be a large loss of funds, and this pressure will interfere with normal trading judgment. With a light position, a successful right-side transaction can realize a profit in time; even if a floating loss occurs in a left-side transaction, investors can hold their positions patiently and wait for price corrections or trend reversals by relying on their grasp of the general direction of the market. Since the position is light, the capital risk is controllable, and the investor's mentality is more stable, and they can operate calmly according to the trading plan.
The same is true for the problem of retracement entry. From the perspective of trading strategy, it is a feasible option to conduct short-term retracement operations at the previous high and low positions. However, an overly heavy position will make investors extremely sensitive to the retracement range, pay too much attention to short-term price fluctuations, and thus miss the opportunity to enter the position or blindly stop losses. The light position strategy allows investors to look at retracements with a more relaxed mentality. If the retracement transaction is successful, the position can be closed smoothly to make a profit; if a floating loss occurs, as long as the general direction is correct, it can be used as a short-term band position, patiently waiting for profit, without frequently adjusting the strategy due to capital pressure.
In summary, just as the human body becomes sick due to excessive burden on organs caused by overeating, an overly heavy position in foreign exchange investment transactions will also cause a series of problems. The light position strategy can effectively avoid these risks, maintain the effectiveness and stability of trading techniques, and is the key to solving various trading problems.

In foreign exchange investment and trading, the types and classifications of traders usually depend on conditions such as capital scale and personality.

---

Traders either choose to trade with heavy positions in short-term trading or choose to invest with light positions in long-term trading. Trading techniques also mainly revolve around these two types, but strictly speaking, most trading techniques revolve around short-term trading, while there are relatively few techniques and methods for long-term investment.
In foreign exchange investment and trading, in order to make money, traders will eventually choose one of these two paths: either light positions in long-term trading or heavy positions in short-term trading. The high-probability method of long-term investment is mainly to pick the bottom and touch the top, so that the maximum profit of the band can be earned. If the trader's position is too heavy, the stop loss will be very large, which is difficult for ordinary traders to bear. Therefore, the trader's large-band fixed position cannot be too heavy.
The method of short-term trading is to make small profits through frequent operations. Although light position operation has lower risks, the single profit is also small, and it is necessary to accumulate wealth gradually through the accumulation of countless small profits. This is also the most difficult way for short-term traders. One of the reasons why most traders lose money is that they choose short-term trading.
At present, few people do short-term foreign exchange trading, and the global foreign exchange investment market is quiet. The reason is that there are too few short-term traders. Foreign exchange currencies have almost no trends, because the mainstream central banks around the world have low or even negative interest rates, and the interest rates of mainstream currencies are tied to the US dollar interest rate, which is very tight. Therefore, the currency value is relatively stable, there is no obvious trend, and short-term trading opportunities are reduced. Most currencies fluctuate in a narrow range, and it is difficult for short-term traders to find opportunities.

---

• 
• 

---

13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

z.x.n@139.com

Mr. Z-X-N

China · Guangzhou

---