Forex investment experience sharing, Forex account managed and trading.
MAM | PAMM | POA.
Forex prop firm | Asset management company | Personal large funds.
Formal starting from $500,000, test starting from $50,000.
Profits are shared by half (50%), and losses are shared by a quarter (25%).
Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
Advantages and Disadvantages of A Book and A Book Model.
Advantages and Disadvantages of A Book Model.
Advantages.
The A Book model provides transparency to Forex traders as orders are executed directly in the real market without conflicts of interest. This allows traders to trade with peace of mind and confidence in the results of their trades.
The A Book model allows traders to directly access the market and orders can be executed quickly and efficiently without delays or requotes.
Since orders are executed in the real market, traders can be sure to get the best market price without any hidden markups.
Brokers operating under the A Book model usually make a profit through commissions or spreads. This revenue model is relatively transparent and traders can clearly understand the cost structure.
Disadvantages.
Under the A Book model, traders' orders are directly exposed to market fluctuations, which may affect trading results.
The depth of liquidity and the availability of market prices depend on the broker’s relationship with the liquidity provider, which may affect the quality of order execution.
Since brokers make profits through commissions or spreads, this may increase the trader’s transaction costs.
B Book Model Advantages and Disadvantages.
Advantages.
The B Book model allows brokers to provide liquidity and trade against their clients, which may result in faster order execution and potentially narrower spreads.
The B Book model enables brokers to manage risk exposure by internalizing client orders and controlling pricing and execution policies.
Under the B Book model, brokers may not charge commissions or spreads, so traders’ transaction costs may be lower than under the A Book model.
Disadvantages.
The B Book model may introduce potential conflicts of interest because brokers become the counterparty to the trader and may have an incentive to manipulate prices or execution speeds.
Since orders are internalized rather than executed in the real market, pricing and execution may lack transparency, which may affect trading results.
Not all brokers trade on a B Book model, and some may engage in slippage, re-quotes, or other unfair trading practices that could affect a trader's trading results.
Pros and cons of using multiple brokers for forex traders.
Arguments in favor of using multiple brokers.
Some forex traders prefer to use multiple brokers, arguing that this allows them to diversify their trading activity across different platforms and markets, helping to spread their risk and reduce the impact of any single broker or market event on their entire portfolio. In addition, different brokers can provide access to different markets or financial instruments, thereby providing traders with a wider range of choices and trading opportunities. By comparing pricing and fees from different brokers, traders can choose the best trading conditions and potentially save on trading costs. Moreover, if one broker experiences technical difficulties or other problems, having multiple brokers can provide backup and redundancy, ensuring that trading activities can continue uninterrupted.
Arguments against using multiple brokers.
However, there are forex traders who are wary of using multiple brokers. They believe that using multiple brokers increases the potential for complexity and confusion in managing trades, positions, and account balances across different platforms. While using multiple brokers may save on trading costs, it may also result in increased costs due to having to maintain multiple accounts, pay for data feeds, and other fees. If not managed properly, using multiple brokers can increase risk by leading to inadvertent duplication of trades or exposure to the same market events. Different brokers may be subject to different regulatory requirements, making it more difficult for forex traders to ensure compliance with all applicable rules and regulations.
How Revenge Trading Works for Forex Traders.
Revenge trading is when a forex trader, after incurring a significant loss, enters into one or more trades in an attempt to recoup previous losses. When traders are faced with losses, they often try to claw back those losses. Sometimes, this desire is so strong that traders behave irrationally. They abandon their proven trading strategies and enter into larger trades in an attempt to "get even" in the market.
Traders generally understand that irrational trading often leads to negative outcomes. However, the bigger the loss, the stronger the urge to revenge the market may be. This phenomenon applies not only to trading, any decision made in anger or frustration is unlikely to be successful.
Revenge trading occurs when a trader repeatedly places orders in the market in an attempt to recoup previous losses. The problem, however, is that the trader's trading capital takes the brunt of the hit, not the market. The more often a trader returns to the market, the more the market consumes their capital because they are trading based on emotion rather than strategy and discipline. Eventually, a one-time loss can turn into a significant loss in the trading account and even lead to the dreaded margin call.
Reasons Why Forex Traders Revenge Trade.
While many Forex traders may be skeptical, the fact is that almost all of them have been the victim of revenge trading at some point in their trading career. So why do traders still do this when they are fully aware of the devastating impact this behavior can have on their trading results?
The reason is simple: Forex traders are human beings, and emotions and instincts are often their primary drivers when making decisions. Losses in the Forex market naturally trigger emotions such as fear, anger, regret, and greed. Traders let these emotions influence their behavior, even when they are irrational.
Most people believe that risk and reward are constants that can be determined in Forex trading. However, in reality, things are often not so simple, and emotional reactions to wins and losses are inevitable. In addition, the unpredictability of the market is the norm. The price of a currency pair may have fallen, but this does not mean that it will not climb again in subsequent trading sessions. Although traders may be frustrated by previous setbacks, there is always a chance that things will get better. This temptation leads many uninformed traders to be drawn into revenge trading.
The harm of revenge trading by Forex traders
Unfortunately, many inexperienced Forex traders are easily tempted by revenge trading because they are not fully aware of the risks involved. The most obvious problem is that traders may risk all of their trading capital on trades that they should have avoided.
Revenge trading can also cause traders to doubt their own trading skills. A series of large losses can severely knock a trader's confidence, and the experience may linger in the trader's memory for days.
Traders may be hopeful initially, but the market may eventually turn against them, leaving them hopeless and frustrated. It is an emotional roller coaster. The worst part is that when the trader regains their senses, they must rebuild their confidence as a trader and their account balance.
Never make a trading decision based solely on feelings. This can cause traders to reject time-tested techniques such as entry and exit methods. In addition, because traders are trading in revenge against the market, they may ignore good money management principles.
13711580480@139.com
+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou