Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
Large participants in the foreign exchange market do not rely on small orders from retail investors, but from a technical analysis perspective, the entry point for long-term investment layout. It happens to be the stop loss point of retail investors, which just overlaps.
In the scope of foreign exchange investment and trading, professional entities such as foreign exchange banks, foreign exchange funds, sovereign institutions and foreign exchange market makers generally monitor the order information of retail investors based on the needs of comprehensive market research and judgment. The main institutions will also pay attention to the fluctuations in the investment mentality of retail investors from the perspective of market trend analysis.
From the historical data and market practice of foreign exchange investment and trading, when the retail investors in foreign exchange investment and trading show a concentrated tendency to go long, the price trend of the foreign exchange market will tend to go down in most cases; on the contrary, if retail investors generally adopt a short-selling strategy, the market price has a greater possibility of rising. At the same time, whether the foreign exchange market is in the process of rising or falling, the points where retail investors execute stop loss operations often have a high degree of overlap with the key nodes of market reversal.
Here, it is necessary to issue a professional warning to retail traders in foreign exchange investment transactions: Do not fall into a state of unwarranted imagination and excessive anxiety. Objective facts show that large market participants such as foreign exchange banks, foreign exchange funds, sovereign institutions, and foreign exchange market makers, with their strong financial strength and extensive business layout, do not rely on small and scattered orders from retail investors for their investment decisions and operating models.
However, it needs to be emphasized that in the actual operation process of foreign exchange investment transactions, although there are no specific specialized institutions or entities that deliberately keep a close eye on the every move of retail investors, given the inherent behavioral logic of foreign exchange investment transactions, retail investors have invisibly formed a corresponding situation on both the supply and demand sides of the market with foreign exchange banks, foreign exchange funds, sovereign institutions, and foreign exchange market makers in the market structure. Specifically, in terms of key technical nodes at the operational level, the latter's entry point selection for long-term investment layout often coincides with the stop loss point of retail investors. This technical detail has been verified in a large number of empirical studies and market practice cases. This phenomenon can easily mislead retail investors, making them feel that they are closely monitored by major institutions. The actual root cause is that retail investors are limited by their own capital scale and can only focus on short-term trading in terms of strategy selection, which makes the dense area formed by short-term traders due to frequent stop losses naturally transform into an ideal range for long-term investors to capture market opportunities and implement entry layout.
In the professional practice of foreign exchange investment and trading, accurately explaining the internal logical context between active profit-taking and passive profit-taking has an extremely outstanding auxiliary effect for deep insight into the core essence of investment and trading.
As for the classic investment strategy of "letting profits run", from the analysis of its internal mechanism, it is essentially to leave ample space for the continuous expansion of investment profits while effectively implementing the retracement range control operation. In detail, the active profit-taking strategy usually shows a high degree of adaptability to the volatile market environment in actual application scenarios. Considering that the market fluctuations in the volatile market are characterized by high frequency and relatively limited volatility, active profit-taking measures can help investors accurately capture opportunities and lock in existing profits in a timely manner in the face of relatively low risk of retracement, thereby achieving the expected target of staged returns. In contrast, passive profit-taking strategies play a key role in market patterns with significant trends. Although such markets have clear and identifiable price trends, their volatility is often considerable at the same time, which means that although passive profit-taking strategies are likely to encounter large-scale risk shocks of retracement during implementation, they also create potential opportunities for investors to gain more substantial returns.
Further in-depth analysis of the decision-making driving factors of active and passive profit-taking shows that active profit-taking measures are often a rigorous and prudent risk avoidance strategy choice decisively taken by investors when they keenly capture the signs of small losses in the early stage. In this specific situation, investors rely on professional predictions of short-term market volatility risks to decisively lock in existing profits and go all out to avoid further deterioration and spread of losses. Interestingly, passive profit-taking usually occurs at a critical stage when investors have successfully achieved a certain scale of profit. Even if the subsequent market trend shows a correction trend, which in turn induces potential loss risks, investors still resolutely choose to maintain the existing position layout based on their firm confidence in the continuity of market trends, hoping to take this opportunity to reap more substantial investment returns.
The ultimate result of engaging in foreign exchange investment and trading is to cause substantial damage to the life and health of individuals. In terms of the essential meaning, this investment activity has deviated from its initial value goal.
In the scope of foreign exchange investment and trading, focusing on the heavy position operation scenario at the investment strategy level, for investors with relatively weak psychological pressure tolerance, it is highly likely to induce significant negative effects. In extreme cases, it may even pose a real potential threat to the physical and mental health of this group and even life expectancy. In-depth analysis of foreign exchange investment and trading practices from a long-term perspective shows that given that the foreign exchange market is always full of persistent risk factors and highly uncertain factors, investors' psychological framework and physiological function operation mode will most likely undergo a long period of adaptive adjustment and gradual change.
From a physiological perspective, investors may show a series of typical manifestations such as aggravated hair loss symptoms, signs of vision decline, the emergence of gastric ulcers, circadian rhythm disorders, endocrine system homeostasis imbalance, and abnormal dopamine secretion mechanism. If the final outcome of foreign exchange investment and trading activities is to cause substantial damage to the life and health of individuals, then from the perspective of the essential meaning, the investment activity has deviated from its initial preset value benchmark and goal orientation.
Based on the above situation analysis, investors should uphold a scientific and rigorous attitude, put risk control and profit acquisition in a balanced and coordinated state, use scientific and rational methodologies to implement meticulous and coordinated management of funds, and at the same time, persevere in maintaining a good physical and mental state, and strive to ensure that investment activities move forward in an orderly manner along a stable, reliable and sustainable development track. Only in this way can we achieve a healthy balance between value creation and physical and mental health in the field of foreign exchange investment and trading.
Life and health are the foundation for all value creation and realization. Once they are lost, the economic value contained in money will lose its carrier and become a rootless end without real meaning.
In the professional practice of foreign exchange two-way investment and trading, the implementation of heavy position operation strategy has a significant impact on multiple dimensions. First, in the process of shaping investors' decision-making psychology, it deeply penetrates into it, interferes with the true human nature decision-making and judgment mechanism formed by investors based on rational and objective criteria, causing the decision to deviate from the optimal path; second, from the perspective of individual investor survival and development, there are potential negative impacts on their health status and life expectancy that cannot be underestimated, which buries concerns for investors' long-term quality of life.
When the foreign exchange market shows a trend of rising profits, investors who choose a heavy position strategy are easily tempted to cash in their profits and immediately lock in existing profits due to the rapid accumulation of considerable profits in a short period of time. This short-sighted decision-making behavior driven by short-term interests often causes investors to miss out on potential long-term profit-making strategic opportunities and miss the opportunity to deeply tap the market dividends. On the contrary, when the market enters a downward trajectory and investors fall into a loss dilemma, the huge psychological pressure derived from heavy position operations makes it easy for investors to fall into a stalemate and difficult decision-making dilemma. Because it is difficult to face the cruel reality of capital loss, they stubbornly stick to their positions and are unwilling to decisively take stop-loss exit measures. If this behavior pattern continues, it will eventually trigger more severe loss consequences with a high probability, and even completely lose the key opportunity window to re-select and accurately enter the market when the subsequent market recovers, causing investment to fall into a passive deadlock.
Furthermore, from a macro perspective of long-term immersion in the foreign exchange investment and trading environment, we can see that this field is full of high-risk factors and highly uncertain variable factors. Investors who have been in it for a long time will most likely undergo a long-lasting and even permanent adaptive adjustment and structural remodeling evolution process in their psychological framework system and physiological organizational structure. Focusing on the physiological dimension for detailed observation, investors may show a series of typical manifestations such as premature growth of gray hair, aggravated hair loss symptoms, gradual myopia, obvious onset of gastric ulcer symptoms, circadian rhythm disorders, endocrine system homeostasis imbalance, and abnormal dopamine secretion regulation mechanism, which directly reflect the erosion of long-term investment pressure on body functions.
If the ultimate direction of foreign exchange investment and trading activities is to sacrifice the life and health of individuals at a heavy cost, then returning to the essential source of the investment activity for in-depth examination has seriously deviated from its initial preset core value appeal and goal-oriented positioning. After all, life and health are the foundation for all value creation and realization. Once they are lost, the economic value contained in money will lose its carrier, become a rootless end, and lose its substantive meaning.
In view of the above comprehensive analysis, investors should uphold a highly rigorous, scientific and rational attitude and standpoint when engaging in the practice of foreign exchange trading, and put risk control and income acquisition in an ideal situation of balanced coordination and mutual complementation. Make full use of scientific and refined modern fund management methodology to implement all-round, in-depth, meticulous and detailed overall planning and precise control of investment funds. At the same time, persevere and carefully maintain a good state of physical and mental function, and in the long journey of pursuing steady growth of economic benefits, ensure that investment activities will not cause any negative interference to the physical and mental health of individuals, so as to achieve a harmonious symbiosis and win-win situation of investment benefits and physical and mental health, and promote the field of foreign exchange investment and trading to move forward steadily along the track of sustainable development.
Long-term investors focus on the long-term market trend. In order to effectively avoid forced liquidation due to short-term market fluctuations, they tend to set the stop loss point relatively loosely.
In the professional practice of foreign exchange investment and trading, the structure of the stop loss strategy shows significant personalized characteristics. Its precise setting process requires investors to closely follow the specific market situation and make scientific choices with a prudent attitude. For novice investors who are new to the foreign exchange market, a deep understanding of the key significance of the stop loss strategy and the proficiency in how to reasonably plan the stop loss point layout according to the actual market conditions constitute one of the core key links in accumulating initial investment experience.
The precise establishment of the stop loss point should comprehensively consider the trader's profit expectation target setting, the established trading strategy planning, the risk tolerance boundary of the trader, and the current real-time market dynamic conditions and other complex factors. Specifically, for short-term traders, given that their trading behavior presents the significant characteristics of high trading frequency and relatively short holding period, in order to keenly and agilely capture the ever-changing market fluctuation trend, their stop loss point setting usually presents a tight layout trend, striving to make immediate and accurate response feedback to the abnormal market fluctuation trend in a very short time; in sharp contrast, long-term investors focus on the long-term market trend, and tend to set the stop loss point relatively loose for the strategic consideration of effectively avoiding premature forced liquidation due to short-term market fluctuations.
Further in-depth exploration can find that there is a close and inherent logical connection between the stop loss setting methodology and the basis for traders to enter the transaction. For example, practitioners who carry out trading activities based on professional means of technical analysis are very likely to accurately anchor the stop loss point based on a series of professional technical indicators such as the breakthrough characteristics of the candlestick chart, the reference of the previous high and low points, and the running trend of the moving average system. For long-term investors, if they use a positive pyramid strategy or an inverted pyramid strategy with no leverage or low leverage, and they choose the right time to carefully arrange the operation at the bottom or top of the market, then under certain market circumstances and conditions, they may prudently make a decision not to set a stop loss for the time being. Of course, this decision undoubtedly puts forward extremely high professional requirements for the investors' own market insight and risk management control capabilities.
In summary, there is no fixed universal standard paradigm for setting a stop loss strategy. It requires traders to make flexible, precise and adaptive dynamic optimization adjustments based on their carefully planned trading plans, in-depth market analysis conclusions and stable and reliable risk management principles. For novice investors, it is recommended that after a certain period of accumulation of trading practice experience and sufficient enrichment of their own trading knowledge reserves, they can gradually optimize their personal stop loss strategy system in an orderly manner. At the same time, it is important to always keep in mind that reasonable and effective control of investment risks is always the key to the road to investment success, and it must not be ignored.
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