Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
In foreign exchange investment trading, the view of "profits and losses from the same source" is often difficult to hold true in practical operations.
The concept of "profits and losses from the same source" is usually less persuasive when explained with stocks as an example. However, it is relatively feasible to explain it in the field of two-way trading such as foreign exchange and futures. But even if following the principle of "profits and losses from the same source", it is impossible to ensure victory in trading. At most, only relatively limited small profits may be obtained, mainly due to the restriction of human nature. Specifically, suppose that after a buy operation, it remains in a loss state for a period of time. But if the choice was a sell operation rather than a buy operation at the beginning, then the state at this time may be profitable rather than a loss. However, in actual situations, due to the influence of human nature, people often tend to hold on when facing losses, and will quickly close their positions when making profits. Applying the reverse engineering principle of "profits and losses from the same source", the profit that can be obtained is extremely meager. This is because people find it difficult to hold positions for a long time and are difficult to resist the temptation to quickly close profitable positions after making profits. They often close profitable positions prematurely and only obtain a small amount of profit. In a loss state, people often hold on for a long time.
In conclusion, although there is a situation of "profits and losses from the same source" and reverse opening operations are carried out, it is still difficult to win in trading. The reason lies in the defect of human nature, that is, holding on when in a loss and quickly leaving when making a profit. On the contrary, the anti-human nature approach should be to leave quickly when in a loss and hold on for a long time when making a profit.
In the field of foreign exchange trading, the account opening contract of foreign exchange banks usually clearly indicates that the bank will act as the only counterparty for all customer transactions in trading.
In practice, this situation means that there is a possibility of a bet between the two parties to the transaction. In addition, it should be noted in particular that banks are not obligated to provide customers with the best price. This point is extremely important for investors participating in foreign exchange trading because it may affect the cost and return of transactions to a certain extent.
Furthermore, some foreign exchange banks have a large number of platform agents. Facing numerous agency institutions, investors need to carefully conduct self-discrimination. Different agents may have differences in service quality, transaction fees, platform stability, and other aspects. When choosing an agency institution, investors should fully understand its background, reputation, and past customer evaluations and other information in order to make a wiser decision.
In some countries, due to legal and regulatory restrictions, only banks are permitted to conduct foreign exchange business. This makes the market structure of foreign exchange trading in these countries relatively concentrated. In this situation, investors have a relatively narrow range of choices, but at the same time, they also need to be more cautious in choosing the appropriate bank for foreign exchange trading to ensure the safety of their own funds and the smooth progress of transactions.
In short, in foreign exchange trading, investors need to fully understand the terms of the account opening contract of foreign exchange banks, carefully choose platform agents, and pay attention to the foreign exchange business regulations of different countries in order to better protect their own rights and interests and achieve investment goals in the complex and changeable foreign exchange market.
In the field of foreign exchange investment trading, which is extremely challenging and full of opportunities, the phenomenon of frequent trading usually does not stem from a lack in technical aspects or insufficient experience. Its fundamental reason lies more in the incomplete understanding of the market.
Many investors, when first entering the foreign exchange market, often hold the beautiful vision of rapidly accumulating wealth and achieving financial freedom through short-term trading. However, this concept often leads to excessive trading behavior in actual operations. They mistakenly believe that frequent short-term operations can quickly capture every subtle fluctuation in the market and thus obtain high profits, but they ignore the huge risks hidden therein.
In fact, true investment wisdom is manifested in a profound understanding of the limitations of short-term trading and the unique value of long-term investment. Although short-term trading may bring certain returns in some specific situations, it is also accompanied by extremely high uncertainty and transaction costs. The short-term fluctuations of the market are often affected by many random factors and are difficult to predict accurately. In contrast, long-term investment focuses more on grasping market trends and the long-term appreciation of assets. When investors truly realize that a long-term stable investment strategy is the key to success, they will consciously reduce the trading frequency, abandon blind following and impulsive trading behaviors, and thus make wiser investment decisions.
This kind of transformation is usually not achieved overnight but is accompanied by a profound understanding and perception of the essence of trading, which is commonly known as "trading epiphany". Through this epiphany, investors can view market fluctuations from a more objective and rational perspective and are no longer influenced by short-term interests. They will recognize the complexity and uncertainty of the market and understand that investment is not a short-term gamble but a process that requires patience, wisdom, and long-term planning. When facing market fluctuations, they can stay calm, adhere to their investment principles, and avoid making wrong trading decisions due to momentary impulses. Only in this way can investors walk more steadily on the road of foreign exchange investment and achieve real wealth appreciation and financial freedom.
In foreign exchange investment trading, the role of moving averages is like a lighthouse guiding the path of life and usually has high accuracy and rationality.
When funds are on the verge of depletion, investors will deeply realize that the trend of the foreign exchange investment market has a certain objectivity and inevitability. The reason why moving averages are often considered correct is that they accurately reflect the historical trajectory of foreign exchange prices. Looking back at past trading data, it is not difficult to find that moving averages have extremely high reference value. This is because moving averages are constructed based on accurate data. However, in actual operations, moving averages are not perfect. This is the reason why moving averages seem magical during post-mortem analysis but still need to be comprehensively analyzed in combination with other factors.
A successful life trajectory is similar to a moving average in that it closely accompanies an individual's growth process. When reviewing life, one will find that all experiences, including twists and turns and setbacks in life, seem logical. These setbacks are like taking a step back before long jumping, which is for the purpose of building up momentum so as to achieve a longer jump. In foreign exchange investment trading, a pullback is also similar to taking a step back before long jumping, and its purpose is to accumulate energy to achieve a more significant price leap.
Under normal circumstances, moving averages need to be used in combination with candlestick charts to exert their maximum effectiveness in foreign exchange investment trading and provide investors with more accurate market analysis and decision-making basis.
In the foreign exchange investment trading market, investment returns should not be over-promised. Because the foreign exchange market is usually difficult to predict accurately like traditional businesses.
For example, when running a factory, if an order from a foreign customer is received and production can be completed within three months according to the established plan, then the profit can usually be estimated. However, in the field of foreign exchange investment trading, even if customers entrust us to manage their accounts, we cannot guarantee any specific earnings, because the final profitability depends on market volatility.
If the foreign exchange market remains in a sideways consolidation state, then any assertion about earnings is very likely to be proven wrong. Only those inexperienced foreign exchange investment traders who have not experienced large-scale market fluctuations will make commitments rashly. In fact, the maximum drawdown, potential earnings, and possible losses in foreign exchange investment trading all need to be evaluated according to the actual market fluctuations, and these cannot be determined in advance before foreign exchange investment trading.
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