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, some currencies show specific market performance characteristics.
Take the ruble as an example. During its interest rate hike cycle, there is a risk of exchange rate depreciation. From an empirical perspective, when the Turkish lira implemented its interest rate hike policy, the exchange rate trend did not rise as expected by traditional theory, but instead showed a downward trajectory. Based on the above phenomenon, it can be clearly seen that investors should not stick to the unchanging established rules in the process of foreign exchange investment practice.
As a common strategy in the field of foreign exchange investment, interest rate carry trading is very easy to break the existing regular patterns when encountering sudden major geopolitical events, international trade frictions and other events. For example, behind Russia's decision to raise interest rates is the deep interference of external sanctions. The influence of such special factors on the foreign exchange market has surpassed the advantage effect brought by the simple interest rate carry factor. Similar situations also frequently occur during the process of major international events such as Brexit and the Sino-US trade war. These events have reshaped the trend logic of the exchange rates of related currencies to varying degrees.
Focusing on the Turkish lira, the people of the country generally show a tendency to prefer foreign currencies such as the euro and the US dollar rather than holding their own currency in asset allocation, based on multiple factors such as macroeconomic situation and currency stability. Under this market pattern, even if the Turkish central bank adopts an aggressive monetary policy and raises interest rates to a high level of 50%, it is still difficult to fundamentally change the weak pattern of the lira in the foreign exchange market. From a different perspective, the huge carry space derived from the fluctuation of the lira exchange rate has been accurately captured by senior investors with keen insight and rich practical experience in the international market. With professional risk hedging, capital allocation and other strategic means, they have successfully used this market opportunity to gain considerable returns, further highlighting the complex and changeable characteristics of the foreign exchange market and the necessity of professional research and response.
In the field of foreign exchange investment and trading practice, optimizing position allocation and implementing scientific, rigorous and effective fund management strategies have become basic and core skills that investors must firmly grasp.
From the perspective of combining theory and practice, on the one hand, a scientific and reasonable fund management plan can effectively help traders to ensure that the investment portfolio remains in a relatively stable operating state and effectively resist potential risk shocks when facing the complex, changeable and uncertain foreign exchange market fluctuations; on the other hand, accurate and timely position adjustment tactics play an indispensable key supporting role in promoting investment returns towards the goal of maximization.
In terms of the actual operation process of foreign exchange transactions, the core points focus on reducing the loss volume derived from loss-making orders as much as possible, and going all out to expand the scope of income that profitable orders can bring. To achieve this challenging goal, foreign exchange traders are required to have extremely high market insight and a stable, reliable, accurate and efficient risk control ability. In terms of specific operating details, for orders in a loss state, traders must remain highly rational and avoid adding positions due to blind impulse, otherwise it is very likely that the scale of losses will be further exponentially aggravated, and they will fall into a more unfavorable situation; in sharp contrast, when facing profitable orders, traders can reasonably adopt the positive pyramid position increase strategy based on prudent evaluation, full consideration of market dynamics and their own risk tolerance. That is, on the solid foundation of existing floating profits, follow strict steps and rhythms, and gradually and orderly increase the size of positions moderately, so as to ensure that while accurately controlling the risk boundary, fully leveraging the market trend, achieving the ultimate goal of using market opportunities to obtain more investment returns, and realizing the dynamic balance optimization of risks and returns.
In the dynamic practice process of foreign exchange investment transactions, the mentality control dimension involved in the two key decision nodes of opening and closing positions by traders has extremely prominent strategic importance.
It is not only closely related to the immediate results of a single transaction, but also deeply affects the long-term direction of the overall investment layout. The following will systematically explain a series of solutions and fundamental principles for the mentality of foreign exchange investment transactions:
Stop loss and liquidation: By building a set of precise, clear and highly practical rule frameworks, scientific and standardized management of stop loss and liquidation operations can be achieved. This measure plays an indispensable and key role in helping traders effectively avoid emotional decision-making risks and escape from irrational decision-making traps. The rigorous formulation process of such rules must be deeply rooted in comprehensive, in-depth and systematic market analysis and research results, and fully consider the risk tolerance threshold of individual traders. Strive to ensure that at the critical moment when the market trend shows an unfavorable trend, traders can quickly and orderly complete the transaction exit action with extraordinary agility, decisive decision-making courage and well-organized operation procedures, thereby effectively achieving the core goal of protecting existing investment capital and firmly building the foundation of investment.
Stop Profit: When the dynamic evolution of the foreign exchange market reaches the key point of the pre-set profit target, traders should rely on a series of meticulous tactical means such as gradual position reduction strategy and flexible trend-following operation to achieve efficient and stable lock-in of profits. This practical operation process puts forward almost strict high standards for traders' comprehensive market research and judgment ability, which means that traders must have excellent insight into and keenly capture the potential turning points of the market, and be able to take decisive actions at the most appropriate and accurate time window, so as to firmly grasp the profit opportunity and maximize the investment income.
Trend-following trading: Closely following and strictly following the mainstream trend of the foreign exchange market to carry out trading operations, it is of great benefit to significantly increase the success rate of transactions and optimize investment performance. In this process, traders must master the professional core skills of accurately identifying the main market trends through continuous learning, in-depth research and repeated practice, and always move forward steadily along the trend direction, and resolutely abandon all adventurous behaviors against the trend. Only in this way can we more efficiently and accurately capture various potential opportunities that continue to emerge in the market, optimize investment returns in all aspects, and achieve investment goals.
Probabilistic thinking: Deeply understand and calmly accept the inherent uncertainty of foreign exchange trading activities, and cleverly use the probabilistic thinking analysis paradigm to conduct a comprehensive, systematic, and in-depth quantitative evaluation of various potential results in the foreign exchange market and their probability of occurrence. Adhering to this scientific thinking mode will help traders maintain an objective, calm, and rational trading mentality in a rapidly changing trading environment, and then continue to consolidate and strongly strengthen the foundation of confidence in the established trading strategy, and inject a steady stream of endogenous driving force support for long-term and stable investment practices.
Positive impact of profit: regard every successful foreign exchange trading experience as a strong affirmation and verification of the scientific nature and precise execution ability of the carefully formulated trading strategy. Take this precious opportunity to gradually accumulate and continuously strengthen the power of belief in the depths of the heart, and deeply sublimate the cognitive belief in the underlying laws of the operation of the foreign exchange market. This will provide traders with a solid, reliable and continuous spiritual pillar support when facing the many difficulties and pressures derived from the complex, changing and challenging foreign exchange market environment, helping them to always maintain a positive and enterprising attitude.
In short, foreign exchange investors must always keep in mind: although technical analysis methods occupy an important and irreplaceable key position in the entire investment decision-making process, in essence, the trader's own mentality adjustment and optimization ability and discipline and execution strength are often the core password and key to the real success. Principles such as "stay calm and follow the rules" are concise but powerful practical guidance. In certain complex situations, compared with complicated and sophisticated technical analysis routines, they are more effective in leading traders to steadily move towards the road of wealth freedom.
In the financial field, foreign exchange investment and foreign exchange trading can be analyzed by professional analogy by referring to the operation mode of physical stores and factories.
Foreign exchange trading is similar to the refined operation of a short-term oriented physical store. The daily key operating indicators, such as customer flow, number of transactions and customer unit price, directly affect the level of operating income on that day, and the revenue value will show obvious fluctuations with factors such as the fluctuation of customer flow and changes in product sales popularity caused by market supply and demand dynamics. Highly consistent with this, foreign exchange trading is a financial activity focusing on short-term returns. Traders closely rely on the short-term price fluctuation trend of the foreign exchange market and frequently buy and sell currencies in a relatively short time period. The final profit or loss situation depends on the real-time dynamic change pattern of the foreign exchange market, including but not limited to the exchange rate fluctuations caused by the immediate release of macroeconomic data, the impact of geopolitical emergencies and the temporary adjustment of monetary policies of major economies.
Foreign exchange investment is similar to the stable operation of a long-term layout factory. During the factory operation, the comprehensive operating results within a one-year cycle, including the production target, cost control results, and market sales share, are gradually accumulated and converted into annual net profit; and after ten years of continuous operation and optimization, the total amount of income accumulated by the deep integration of various operating factors will be affected by multiple complex factors such as the cyclical changes in macro market demand, the efficiency optimization brought about by the upgrading of production process, and the dynamic shaping of product differentiation competitive advantages, thus showing a regular or occasional fluctuation trend. From a financial perspective, foreign exchange investment belongs to the category of long-term strategic-oriented financial behavior. Investors hold a specific currency asset portfolio based on in-depth judgment of the global economic development context, the rise and fall cycle of the industries of major economies, and the long-term evolution trend of the monetary system, aiming to obtain stable and growth-potential investment returns over a long period of time. The level of its income depends largely on the trend of the relative value of the target currency in the long macroeconomic cycle and the structural change characteristics in the process of reshaping the global economic structure.
In addition, other familiar industry scenarios can also be used for analogy and expansion. For example, short-term temporary project cooperation, with its short cooperation cycle and focused goal of quickly achieving phased benefits, can be accurately compared to the short-term and fast operation style of foreign exchange transactions; while long-term systematic strategic planning and deployment, involving deep integration of resources, continuous cultivation of core competitiveness, and the pursuit of steady expansion of asset scale and value for long-term goals, is similar to the long-term value discovery attribute of foreign exchange investment. In general, in financial practice, the short-term financial activity paradigm with the core of agile capture of market opportunities and rapid profit realization can be clearly defined as trading behavior, and the long-term financial behavior pattern with the goal of steady asset appreciation and deep integration into the long cycle of economic development can be accurately defined as investment behavior.
In the process of long-term foreign exchange investment practice, objectively speaking, there is no perfect investment strategy; similarly, in the short-term foreign exchange trading scenario, it is also difficult to find an ideal trading opportunity without any flaws.
Dissatisfactory aspects are common as a normal state. After the transaction is completed, we can always find many areas that need to be improved and improved, and regrets often occur.
It should be clear that both short-term foreign exchange trading and long-term foreign exchange investment can be regarded as financial practice art forms that contain regrets and imperfections. It is precisely because of this characteristic that both are full of uncertainty and dramatic changes, creating opportunities for investors to demonstrate their excellent personal decision-making ability and bold judgment, and thus making it possible to create extraordinary investment performance and create investment myths.
Whether investing in the field of short-term foreign exchange trading or focusing on the field of long-term foreign exchange investment, investors need to make decisions and judgments independently, and should not rely too much on the advice given by others. In the actual trading process, we should always maintain a firm belief, maintain a calm and steady mentality, do not regret past decisions, do not fear market fluctuations, and do not fall into unwarranted self-blame. Only in this way can we more calmly deal with the complex and changeable fluctuations and challenges of the foreign exchange market.
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