Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
Many traders have gone through a long and arduous learning process, and after accumulating rich and varied practical experience, they often give up halfway when they are about to succeed at the critical node of stable profit.
In the professional practice of foreign exchange investment and trading, many traders have gone through a long and arduous learning process, and after accumulating rich and varied practical experience, they are often only one step away from the crucial "last layer of window paper" at the critical node of stable profit. In-depth analysis of this core obstacle factor shows that it usually covers in-depth analysis and insight into the underlying logic and internal mechanism of market operation, high-level advancement and strengthening of psychological literacy, and the ability to refine and condense complex and redundant trading strategies, and then simplify them into practical, simple and efficient execution plans.
Looking back at the evolution of foreign exchange trading learning, starting from the initial state of ignorance and superficial cognition, traders are likely to spend several long years concentrating on studying various cutting-edge technical indicators, meticulous analysis methods and diverse and complex market theories, so as to gradually build a relatively complete knowledge framework system; and the transformation and sublimation process from a cumbersome and complex state to a simple and efficient state may only take a relatively short period of time. With the help of in-depth and thorough review and reflection and continuous and unremitting practice and optimization, traders can accurately and keenly understand the core essence of trading behavior, refine the huge and complex knowledge system, simplify it, and ingeniously create a set of exclusive customized trading systems that closely match their own characteristics and actual needs.
The simple cognitive form in the initial embryonic stage is essentially due to the traders' shallow understanding of the market operation rules and the extreme lack of practical experience. At that time, they are very likely to have only a superficial understanding of the market operation mechanism. In the process of making trading decisions, they obviously lack the necessary confidence support foundation and source of confidence. In sharp contrast, the simple and efficient characteristics presented in the final mature stage are firmly built on the double solid foundation of traders' deep and solid knowledge reserves and rich and diverse practical experience. At this moment, they already have a profound and unique cognitive insight into market dynamics, and are full of firm confidence in their carefully crafted trading strategies, so that they can calmly and calmly deal with various complex and changing situations presented by the market.
It is regrettable that a large number of practitioners who are determined to devote themselves to the field of foreign exchange investment and trading resolutely choose to give up halfway at the critical moment when they are about to break through this critical "window paper" that seriously hinders the breakthrough of profit advancement. In-depth exploration of the deep-seated causes behind this phenomenon is likely due to their own lack of sufficient and tenacious patience and indomitable perseverance, which makes it impossible to unswervingly and persistently adhere to their established trading philosophy and principles when facing the frequent disorderly fluctuations of the market and the complex environment under severe pressure. If they can grit their teeth and hold on for a few more days, and successfully break through this critical "window paper", they are very likely to smoothly enter a new stage of development with stable profits and open a new chapter of a different and exciting successful life. It can be seen that for practitioners who are determined to devote themselves to the field of foreign exchange investment and trading, perseverance and unswerving adherence to the firm belief in their hearts, careful cultivation of excellent mentality, and continuous improvement of cutting-edge knowledge and solid and effective practical actions are the core and key to breaking through this critical "window paper" and achieving the ultimate goal of stable profit.
In the field of foreign exchange trading, when pursuing short-term huge profits, it is best to follow the trend and hold a light position, it is slightly better to follow the trend and hold a heavy position, and it is the worst to go against the trend and hold a heavy position.
In the field of foreign exchange trading, when pursuing short-term huge profits, it is usually necessary to follow the trend and use a heavy position. However, in essence, this behavior is similar to gambling. Although high leverage has the possibility of magnifying profits, it also greatly increases the degree of risk and is very likely to cause capital losses. In terms of trading strategies, following the trend and trading with a heavy position is indeed safer than trading with a heavy position against the trend; however, trading with a light position shows greater robustness. Although these principles are relatively easy to understand in theory, they face many difficulties and challenges in actual operation. The weakness of human nature is particularly manifested in the difficulty in effectively controlling emotions and impulses, which is also the key factor for many short-term traders to be quickly eliminated by the market. In addition, some long-term investors with large funds will also choose to increase leverage and rashly trade because they cannot resist the temptation of short-term ultra-high returns, which often ends up with serious losses.
Foreign exchange market makers do not hold positions based on the optimal principle of risk control operations. They not only do not like to hold positions, but also do not like clients with large funds, as it is difficult to eat their capital principal.
In the field of foreign exchange investment and trading, market makers play a vital and indispensable role. Their core functions focus on efficiently injecting liquidity into the market, and effectively driving transactions by continuously, accurately and stably reporting the buying and selling price sequence, ensuring the smooth operation of market trading activities. The profit path of market makers is mainly anchored on the bid-ask spread, which is commonly known as the "spread" in the industry. From the perspective of economic essence, this spread can be accurately defined as the reasonable reward feedback obtained by providing professional services to the market. When the market operation trend presents a virtuous cycle and the trading activity remains at a high level, market makers can rely on frequent small-amount transactions to steadily and continuously obtain spread income, laying a solid foundation for their own operations.
Under the ideal market scenario framework, market makers are not inclined to hold any open positions in theory based on the principles of risk control and optimal operation. This decision-making orientation is mainly due to the fact that holding positions is very likely to induce market risk exposure. Specifically, once they encounter adverse fluctuations in price trends, they are likely to face losses and erode existing profit margins. Therefore, one of the core operational goals of market makers is to sell the currency assets purchased in the early stage as quickly as possible, or to repurchase the currency products that have been sold in time. Through such dynamic balancing operations, they can ensure that their positions are always accurately maintained in a neutral state and minimize potential risks. However, returning to the practical level of reality, given the intermittent shortage of market liquidity or the impact of various complex, diverse and unpredictable external factors such as sudden policy changes and geopolitical conflicts, market makers are inevitably forced to hold positions in a passive situation under certain circumstances. For example, when the market suddenly fluctuates violently, or when the trading volume suddenly decreases without warning, market makers are very likely to encounter difficulties in finding sufficient and suitable counterparties in time, and thus cannot successfully complete the closing operation, and are forced to extend the position holding period and face the market uncertainty risk.
In addition, it is worth noting that some market makers will choose to open the proprietary trading module simultaneously in addition to regular business operations, that is, flexibly call on their own strong capital reserves for active investment operations, aiming to deeply explore market opportunities and seek additional profit growth points. In this type of proprietary trading scenario, the time span of market makers' positions will significantly increase flexibility and be full of uncertainties and variables. This feature mainly depends on their carefully planned proprietary trading strategy layout structure and the ever-changing real-time market feedback. The embedding of the proprietary trading model allows market makers to break through the traditional limitation of relying solely on the bid-ask spread for profit. They can also rely on the in-depth analysis and accurate prediction of macroeconomic trends and micro market trends to selectively implement a combination of long-term and short-term investment strategies, thereby effectively broadening the overall income acquisition channels. However, this also means that market makers must strengthen their own risk management system construction in an all-round and multi-level manner with a more rigorous and prudent attitude, and through precise risk measurement models, dynamic risk warning mechanisms and decisive risk disposal plans, make every effort to avoid potential large losses and ensure the steady and sustainable development of enterprises.
In foreign exchange investment and trading, very few mature foreign exchange investors advocate stop loss. Frequent stop loss is to transfer money to the platform providers and is also a crazy and stupid idea.
In the professional practice field of foreign exchange investment and trading, it is obvious that very few practitioners will sincerely like the stop loss operation. From the perspective of the essential attributes, stop loss is equivalent to a firm announcement of the failure of a single transaction, which is inevitably accompanied by a loss of funds. For practitioners who are engaged in ultra-short-term or short-term trading segments, stop loss has solidified into an indispensable key link in the trading process. However, the reality of frequent losses has effectively launched a high-intensity challenge to the psychological tolerance limit of traders. In the long run, the continuous loss trend is likely to cause the confidence of traders to collapse, and even fall into the difficult situation of being forced to withdraw from the market and terminate trading activities.
However, it cannot be ignored that stop loss plays a key role as the core hub in the sophisticated system architecture of risk management. Its core purpose focuses on strictly limiting the potential loss boundary of a single transaction to effectively protect the existing capital volume and retain sufficient strength reserves for subsequent trading opportunities. Although stop loss behavior directly leads to a reduction in the volume of funds, its inherent essence is a necessary strategic choice derived from a rigorous and meticulous rule system and a highly conscious self-disciplined spirit. With the firm adherence to the established trading rules and the unwavering implementation of strict self-discipline rules, traders can gradually approach the ideal state of stable profits in the long and complex trading journey, and then steadily move towards the lofty goal of financial freedom.
Once the stop loss operation shows an abnormally frequent trend, it largely implies that there are significant omissions and flaws in the current trading strategy, or there is a mismatch between the real-time dynamic conditions of the market and the current trading methods, which are difficult to accurately match. In this situation, traders must immediately start the process of re-evaluation and optimize and adjust existing strategies in a timely manner, and must not blindly allow the loss situation to spread. In addition, in the foreign exchange trading ecosystem, prudently identifying and selecting formal and transparent foreign exchange trading platforms is a critical decision-making point. The reason is that some informal platforms are accustomed to using improper means to seek personal gain, such as deliberately expanding the spread or maliciously creating slippage, thereby increasing the cost of traders and aggravating the degree of loss. If traders accidentally place themselves on such bad platforms and frequently trigger stop-loss orders, they are essentially equivalent to bearing the consequences of the platform's illegal behavior in disguise and bearing additional losses for no reason.
In view of the above situation, traders should be determined to cultivate a deep respect and love for rules and self-discipline, and use continuous in-depth learning and practical exploration to comprehensively improve their trading skills and risk management capabilities. At the same time, we should be prudent in choosing a highly reliable trading platform to effectively avoid unnecessary risk of loss. Only in this way can we steadily move forward in the turbulent and complex foreign exchange market, gradually achieve our established investment goals and vision, and realize the steady appreciation and value sublimation of our assets.
In the field of foreign exchange investment and trading, margin calls are formed by combining heavy positions with high-frequency trading and holding on to losses, supplemented by adding positions against the trend.
In the professional practice of foreign exchange investment and trading, the professional term margin call is usually strictly defined as: due to the continuous trading losses, the amount of funds in the trader's account gradually declines until it falls below the established standard line of maintenance margin, which leads to the complete loss of the legal and practical ability to continue to hold the existing position, and has to comply with market rules and regulatory requirements and passively accept the forced liquidation disposal process. In fact, through in-depth analysis of a large number of liquidation cases, it can be seen that the breeding of liquidation situations often has a close internal logical connection with the following two typical trading patterns:
First, the heavy position and full position combined with high-frequency trading pattern: When traders, out of aggressive investment psychology, use positions close to or even equal to the total amount of funds in the account to engage in trading practice, and carry out buying and selling operations frequently and almost fanatically with ultra-high trading frequency, even if there are only extremely slight adverse fluctuations in the market, it is possible to use market mechanisms such as leverage effects to cause rapid and substantial loss of account funds. Given that there is a serious lack of sufficient capital buffer space in the account at this time to effectively resist the impact of regular fluctuations in the daily operation of the market, once the actual market trend is contrary to the expected direction carefully set in advance, it is like triggering a domino effect, which is very likely to cause a liquidation risk event.
Second, the mode of holding on to losses and adding positions against the trend: When some traders accidentally encounter a trading loss situation, based on overconfidence or wrong market judgment, they insist on holding losing positions continuously, blindly hoping that the market can quickly reverse in the short term and turn losses into profits. In order to achieve the short-sighted goal of reducing the average holding cost, they are very likely to ignore risk warnings and continue to add positions to dilute costs when the price corresponding to the buying position further shows a downward trend; or when the selling position faces an unfavorable situation where the price further rises, they rashly add positions to try to save the situation. If the market continues to evolve in an unfavorable direction in accordance with the existing trend, such irrational operation methods will cause the loss to expand exponentially, and ultimately it is likely to inevitably lead to a catastrophic ending of a liquidation.
In order to effectively avoid the risk of liquidation, professional traders who have survived long-term market tests in the field of foreign exchange investment and trading usually choose the following effective and targeted strategies based on their rich trading experience and accurate grasp of market rules:
First, the light position diversification strategy: Adhering to the prudent and stable investment philosophy, a relatively small position size is used to start each trading activity, and a resolute and decisive attitude is used to prevent all funds from being concentrated on a single trading project. In this way, even if a specific transaction suffers a loss due to uncontrollable factors, it will not cause a nearly devastating blow to the entire account capital system. At the same time, through a scientific and reasonable diversified investment layout, the potential risks contained in a single emergency can be effectively diluted, significantly reducing its negative impact on the overall investment portfolio.
Second, the adaptive trading level strategy: With a deep understanding of one's own trading characteristics, including but not limited to the precise quantification of risk tolerance and the clear definition of unique trading style preferences, carefully and rigorously select a trading time frame that fits one's own conditions and a trading strategy system that perfectly matches it. Given that different traders have significant differences in the above key dimensions, accurately exploring the trading level that complements their own conditions is equivalent to tailoring a solid set of protective armor for their own trading activities, which will help to more efficiently and accurately control risks and keenly capture fleeting trading opportunities in the market.
Furthermore, set a stop-loss strategy: for each specific trading action, based on a comprehensive consideration of multi-dimensional factors such as market volatility range, trading product characteristics, and own risk preferences, carefully set a stop-loss point with clear boundaries and strong execution. Once the real-time market price touches the preset point during the trading process, the trading system will immediately automatically, accurately and decisively execute the closing operation without any delay. As a key core tool in the field of risk management, the stop-loss mechanism can effectively limit the maximum loss amount that a single transaction may bear with institutional rigidity, and escort the safety of account funds.
It is particularly important to emphasize that the survivor bias phenomenon has distinct characteristics in the field of foreign exchange investment and trading: in the process of daily observation, research and experience learning, we tend to unconsciously focus on the group of traders who have successfully survived in the market with excellent trading skills, accurate market judgment and a little luck, and the seemingly exquisite trading strategies they use. However, due to the limitations of information screening, we have ignored many traders who have withdrawn from the market and become "victims" of trading due to various complex reasons (including the above-mentioned improper behaviors that are very likely to cause liquidation). Therefore, when deeply analyzing and studying trading strategies, we should uphold an objective, comprehensive and systematic research attitude, comprehensively and comprehensively consider various potential situations and risk factors, ensure the depth, breadth and scientificity of strategy research, and provide solid and reliable theoretical support for our own trading decisions.
13711580480@139.com
+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou
13711580480@139.com
+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou