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

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Important basis for judging whether a person is a novice or veteran in short-term foreign exchange investment trading.

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In the field of foreign exchange investment trading, if investors still pay attention to financial calendar data, foreign exchange news, study the opening time of the foreign exchange market, struggle with the decision of opening or closing positions on the day, consider whether to set the stop loss to 20 points or 30 points, and even ask questions such as whether foreign exchange trading can be profitable, these signs indicate that they may be a novice in foreign exchange investment trading. The above behaviors can be used as an important basis for judging whether a person is a novice in short-term foreign exchange investment trading.
In contrast, senior practitioners of foreign exchange investment trading usually no longer pay attention to these details. They no longer check financial calendar data and foreign exchange news, no longer care about the opening time of the world's three major foreign exchange markets, no longer set stop losses, and will not ask questions such as whether foreign exchange trading can be profitable. They tend to remain silent, not arguing with others, and not responding to others' questions. For them, arguing or responding to questions has become an option of ignoring.

In essence, CFD trading has significant gambling attributes, which is the core reason why the United States explicitly prohibits such transactions, with the aim of effectively curbing the growth and spread of online gambling.

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In addition, there are drawbacks in CFD trading that cannot be ignored. Among them, the cumulative effect of overnight interest rate spreads is more prominent. If investors hold positions for several years, the fees will show a significant growth trend, which will lead to a sharp increase in transaction costs. This undoubtedly makes it lack adaptability and feasibility when facing long-term investment strategies of large-scale funds.
Of course, CFD trading also has unique advantages. It allows investors to conduct naked short selling. By converting stock investment products into CFD products, investors can realize naked short selling of stocks. This function does not exist in traditional real stock trading platforms based on physical delivery, providing investors with more flexible trading strategy options.
However, when investors make high profits in CFD trading, causing the platform operator to face losses, the risk of the platform operator violating the contract agreement and refusing to fulfill the payment obligation will increase significantly. This is because the investors' funds are entrusted to the platform operator. Under this fund custody model, investors are naturally in a relatively weak position in the transaction relationship, and their fund security and rights protection depend to a certain extent on the integrity and compliance of the platform operator.
In the UK, the conversion of foreign exchange trading from spot trading to CFD trading may involve the application and planning of tax avoidance rules. From the perspective of economic rationality, if the consideration of reasonable tax avoidance is excluded, this transition from foreign exchange spot trading to foreign exchange CFD trading will lack clear economic motivation and actual value, and it will be difficult to reflect obvious advantages in terms of transaction costs and risk-return ratios.

In the past two decades, false breakthroughs in foreign exchange investment transactions have become popular, and foreign exchange carry investment has basically disappeared.

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In the past two decades, breakthrough trading strategies in the field of foreign exchange investment and trading have encountered severe challenges. From the perspective of the market macro, the foreign exchange prices of major economies in the world show a high degree of correlation and stability, the price fluctuation range is compressed to an extremely low level, and the market trend momentum is almost exhausted. In a market environment without significant trend guidance, it is difficult for prices to achieve substantial extension. Once the price breaks through the key point, according to probability statistics, there is a high probability that the price will retrace later. This leads to the fact that in actual transactions, most of the price breakthrough signals presented are false breakthroughs and cannot provide investors with effective trading guidance.
At the same time, carry investment strategies also face many difficulties in foreign exchange investment and trading. At present, major countries in the world generally implement low interest rate or even negative interest rate policies, and the difference range between interest rates of various countries is extremely limited. This low interest rate and narrow interest rate spread market structure keeps the price interest rate difference between major countries in the world within a very small range. In addition, in the process of foreign exchange transactions, foreign exchange brokers usually charge a certain percentage of intermediary fees based on the transaction size. After deducting this part of the intermediary fee, the actual interest rate difference income generated by the foreign exchange currency pair in the buying and selling operations is often all negative. Even in certain specific cases, when the actual interest rate return is positive, the interest rate spread is only maintained at a level of a few basis points, and it is difficult to break through 1 basis point. Based on the combined influence of the above multiple factors, in the current market environment, the carry investment strategy is difficult to be sustainable and cannot bring stable and considerable returns to investors.

In the field of foreign exchange investment, foreign exchange brokers usually follow certain undisclosed internal industry practices.

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When a foreign exchange broker obtains market maker qualifications, it is granted legal gambling rights. Specifically, this means that foreign exchange brokers are able to conduct gambling business with retail foreign exchange traders. The so-called gambling means that foreign exchange brokers do not actually place traders' orders into the foreign exchange market for matching transactions. This is also the root cause of the concepts of A Book (real selling mode) and B Book (gambling mode) in the foreign exchange industry.
However, obtaining market maker qualifications is not an easy task, and there are a series of clear conditions and constraints. The core requirement is that foreign exchange brokers must have sufficient risk resistance and bottom-line capabilities, that is, in extreme market environments, they can effectively withstand risk shocks without falling into bankruptcy, and ensure that they have sufficient capital strength and risk management capabilities to bear the potential risks that may be caused by gambling business.
Looking back at historical events, when the Swiss National Bank announced that it would no longer maintain the fixed exchange rate parity of 1.2 euros against Swiss francs, the foreign exchange investment trading market fluctuated violently in an instant, the price trend showed an extreme shock, and the market risk was released sharply. The fundamental reason for the bankruptcy of foreign exchange market makers in this incident was the lack of sufficient risk buffer capital and effective risk management strategies, and the inability to cope with systemic risks under extreme market conditions, which ultimately led to business failure and bankruptcy.

In the scope of financial investment, there is no absolute standard for judging the pros and cons of various subdivided investment categories, such as stocks, futures, and foreign exchange.

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The key point lies in the investor's familiarity and depth of understanding of a specific type of investment product. Choosing investment targets based on one's own familiarity is a prudent move in the investment decision-making process. From another dimension, familiarity with a certain investment product essentially reflects that investors have invested sufficient time and resources to conduct in-depth research and comprehensive understanding of it.
However, simple familiarity is not a sufficient condition for investment success. Even if you have superb professional skills in a certain investment product field, you should not breed excessive complacency. If you want to achieve the goal of financial freedom, investors must strive to become expert practitioners in specific niches. Only by advancing to the expert level can you achieve true spiritual freedom in investment and trading activities. This is because, as experts in niches, with their deep professional knowledge and rich practical experience, they can form a deep insight into the market operation mechanism. No matter what kind of market volatility, they can remain calm and rational, and avoid making irrational decisions due to emotional fluctuations. Even if you encounter a book loss of hundreds of thousands of dollars, you can remain calm based on your deep understanding of market laws and understand that this is just a stage performance in the normal market fluctuation cycle. Of course, in addition to having deep professional knowledge and market insight, strong financial strength is also an important guarantee for the steady development of investment activities. Adequate capital reserves can effectively avoid the risk of liquidation or pressure of margin calls caused by extreme market fluctuations.
As a multi-account manager, while being responsible for operating my own foreign trade factory, I have devoted all my remaining available time to in-depth research on foreign exchange investment transactions for more than 20 years, all year round, whether it is the Spring Festival holiday or weekends. For me, foreign exchange investment and trading research work itself has gone beyond the scope of a simple profession and has become an activity that is both entertaining, interesting and leisure. Because this process has become the most suitable way for me to relax my body and mind.

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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

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