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 trading, achieving continuous growth of profits is a common demand.
However, for intraday traders in foreign exchange investment trading, reaching this goal is often extremely challenging. There are mainly two reasons: First, intraday price fluctuations are usually relatively limited; second, about 80% of trading days show choppy market conditions. In this case, if one tries to expect a significant increase in profits by holding positions for a long time without setting profit targets, it will often lead to the re-loss of the originally obtained profits. This is because about 80% of the intraday market is in a choppy market condition with relatively large volatility, and there are less than 20% of days with a unilateral trend.
In the field of foreign exchange investment trading, there is no need to feel ashamed when suffering significant losses.
Losses in foreign exchange investment trading are actually a test of an investor's stress resistance ability and also a process of accumulating experience. The greater the challenges faced in foreign exchange investment trading, the stronger the ability to withstand pressure. Just as a military leader will not entrust the task of commanding a major battle to a young officer who has never been on the battlefield, but will choose an experienced general. Only traders who have experienced large-scale fund operations and loss tests in foreign exchange investment trading are capable of managing tens of millions of funds.
Do not easily believe traders who claim to have never suffered losses in foreign exchange investment trading. They are likely to have not truly experienced the severe tests of the foreign exchange investment trading market. Foreign exchange investment traders who have truly seen big scenes and operated large amounts of funds can distinguish in their hearts which foreign exchange investment trading suggestions are valuable and which are false. Human nature is universal and interlinked. In essence, foreign exchange investment trading is a process of learning from failures. Those who can draw lessons from failures in foreign exchange investment trading will eventually achieve success. For traders with small amounts of funds in foreign exchange investment trading, if they have experienced a forced liquidation, it usually means that not only do they have limited funds, but they may also not have used leverage reasonably.
In the foreign exchange investment and trading industry, the incidence probability of depression is relatively high, which may be related to the psychological pressure endured by foreign exchange investment traders.
Anxiety usually arises from the gap between expectations and reality. If the trader's goal is not just limited to pursuing profits but focuses more on long-term strategies and stable operations, then the anxiety they feel may be reduced. Lowering expectations and making expectations more in line with the actual situation is one of the effective ways to relieve anxiety.
Frequent attention to the dynamics of the foreign exchange investment and trading market may increase pressure. In fact, most individual foreign exchange investment traders and institutional traders face the risk of losses, which undoubtedly increases the psychological burden of foreign exchange investment traders. Long-term exposure to capital fluctuations, anxiety, and excessive attention to trading may all exacerbate psychological pressure. If foreign exchange investment trading is the main source of personal income, this pressure may be further increased. In addition, doubts and criticisms from family and friends as well as financial losses may further aggravate depressive emotions.
In the field of foreign exchange investment and trading, the threshold for making profits is relatively high. High expectations are often accompanied by greater risk of disappointment. For those who fail to achieve expected returns in foreign exchange investment trading, feeling frustrated is a relatively common situation. However, successful foreign exchange investment traders usually show traits of thoughtfulness and calmness rather than just depression. Frequent trading behavior is in some conflict with human nature. Excessive trading activities may lead to mental stress, which is a realistic situation that foreign exchange investment traders need to face up to.
Even for a seasoned foreign exchange investment trader, there is still a possibility of suffering significant losses when engaging in short-term trading.
Essentially, trading is dealing with uncertainties. Compared with long-term foreign exchange investment, short-term foreign exchange trading involves more complex uncertainties. Analyzed from the perspective of probability theory, the difficulty of short-term foreign exchange trading is usually higher than that of long-term foreign exchange investment. In fact, most of the capital losses in foreign exchange investment occur in short-term trading. During the months of volatility in foreign exchange investment trading assets, the losses of short-term traders may exceed the losses caused by missing a major market trend. Short-term traders in foreign exchange investment trading are sometimes regarded as liquidity providers or atmosphere creators in the foreign exchange investment market. Although intraday foreign exchange investment trading may achieve profits in the short term, in the long run, losses in foreign exchange investment trading are almost inevitable. The annual volatility of mainstream currencies in the foreign exchange investment trading market usually does not exceed 20%, which is much lower than that of the stock and futures markets. Foreign exchange trading is considered to have a relatively high risk mainly due to its high leverage characteristics. Due to the relatively low volatility, it is difficult to quickly cover the opening cost. If the stop-loss is set too narrowly, it is easily triggered. Without leverage, the risk of foreign exchange trading may actually be lower than that of the stock market.
The buying and selling power in the foreign exchange market can appropriately draw on the trading rules of stocks to assist in judging the actual situation of foreign exchange transactions.
In stock trading, if all participants choose to sell and there is no one buying, the stock price may touch the limit down. Conversely, if all participants are buying and there is no one selling, the stock price may touch the limit up. When the selling power is greater than the buying power, the stock price usually falls; and when the buying power is stronger than the selling power, the stock price may have the possibility of rising. If there is no buyer to take over the seller's order, the stock price may continue to fall until a buyer buys at a lower price. In the state of limit down, the stock price will stop falling until a buyer intervenes. Only when the buyer is willing to accept the seller's price can the transaction be completed. If there is no buyer participation, a large number of sell orders may cause the stock price to fall sharply until it reaches the limit down. Under normal circumstances, there are both buyers and sellers at each price level, and the order size will determine the equilibrium position of the market.
The trading volume in the foreign exchange market is difficult to count, and people often easily overlook the real situation behind it: if everyone in the foreign exchange market buys a certain currency pair, then the price will tend to be stationary. To ensure market liquidity, market makers usually enter in the opposite direction. This not only provides liquidity to the market but also may obtain substantial returns. At the same time, batch stop-loss of retail positions with too narrow stop-loss settings forms a driving force consistent with market makers, making the trend more intense and allowing market makers, investment banks, and sovereign institutions to earn more.
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