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 investment, the importance of the base position should not be underestimated. The base position should generally not be sold easily, because once sold, there is a high probability of losing the solid psychological foundation for long-term holdings.
The base position occupies a crucial position in the entire investment landscape. It is the core element of a long-term investment strategy, just like the cornerstone of a stable building, supporting the entire investment structure. The base position is not just a simple position allocation; it is also a forward-looking prediction and careful layout of future market trends. Its value lies in being able to flexibly adapt to the continuous changes in the market. Even in the face of unpredictable and complex market dynamics, it can still ensure the stability of the investment strategy.
In the process of constructing the base position, investors usually need to base on prudent strategic considerations. This is just like carefully designing and building a solid foundation when constructing a magnificent building. The purpose is to ensure the stability and reliability of the entire investment structure. The base position is by no means just a passive state of existence. It carries the initial investment concept and long-term investment goals of investors. In the fluctuations of the market, maintaining the base position can prompt investors to always remain calm and rational and avoid making impulsive decisions due to short-term market fluctuations.
The existence of the base position provides investors with a crucial psychological sense of security. It is just like an anchor in navigation. No matter how turbulent the sea is, it can keep the ship stable. In actual operation, the base position is the basic holding of investors and provides a solid starting point. When the market fluctuates, investors can more flexibly increase or decrease positions based on the base position. Retaining a certain proportion of the base position helps investors better withstand the market's pullback pressure after the trend is established, thereby maintaining the consistency and effectiveness of the investment strategy.
In short, the base position is the basis for investors to maintain stability and conduct flexible operations in market fluctuations. It is not only an important part of the investment strategy but also the key to the psychological stability of investors. By adhering to the base position, investors can always maintain a clear investment thinking in the fluctuations of the market and flexibly adjust investment strategies to achieve long-term investment goals. At the same time, the base position also provides a stable support for investors in the complex and changeable market environment, enabling them to deal with various market challenges more calmly.
In the field of financial trading, the concept of base position is widely known. However, in two-way tradable varieties such as foreign exchange and futures, the importance of top position is often overlooked.
Top position refers to the position that investors hold for a long time in their accounts. Even when the market rises sharply, it is also the maximum position size that they can bear psychologically. The importance of this position configuration is like the main beam of a house, providing investors with confidence to fear no drawdown when the market pulls back and firm belief that there is no need to worry about missing opportunities when the market breaks through.
Constructing a stable top position strategy is the key to the success of long-term investment. It is recommended to avoid using high leverage, for example, the leverage should not exceed 2 times, to reduce risks. In addition, adopting an inverted pyramid position arrangement method is crucial for long-term holdings. This method can significantly shorten the holding duration of floating losses and then provide investors with more stable psychological support.
Specifically, the inverted pyramid structure means that when establishing a top position, as the market price rises, investors gradually increase the size of new positions. This strategy helps maintain good cost-effectiveness when the market fluctuates and at the same time reduces psychological pressure caused by market pullbacks. In this way, investors can face market uncertainties more calmly and lay a solid foundation for the success of long-term investment.
Japanese candlestick chart technique is not the key core tool for obtaining victory, but only entry-level common knowledge in the investment field.
In the financial realm, even economics experts and finance professors cannot ensure that investments always generate profits. This fully reflects the complexity, variability, and uncertainty of the market. Learning Japanese candlestick chart technique can provide traders with basic candlestick analysis knowledge. However, it is only an entry-level reading material in the trading field, just like learning pinyin in kindergarten, belonging to the most basic category. Such books are by no means a universal key to trading success but only a tool to assist traders in understanding candlestick charts and recording historical market conditions. It is unrealistic to expect to become a consistently profitable trader just by relying on this book. This is similar to the principle that learning Buddhist scriptures cannot directly lead to becoming a Buddha, both requiring in-depth practice and understanding.
Learning candlestick chart technique is the traders' initial understanding of market language. The key lies in how to effectively apply this knowledge to actual trading. Traders need to build their own trading systems and formulate clear trading rules, such as when to enter, when to exit, trading volume, and fund management. These rules play a crucial role in the success of trading because they can help traders maintain discipline and rationality in a dynamic market.
In addition, although candlestick charts can show the strength of each candlestick, excessive focus on details may cause traders to overlook larger market trends, and may even lead traders into the cognitive error of "seeing only the trees but not the forest." In actual trading, candlestick charts may only be effective at certain specific times. At other times, simple line charts or mountain charts may be more effective.
In conclusion, losses are an inevitable part of the trading process. What is important is to draw lessons from them, reflect on one's own trading strategies and cognitions, and continuously make adjustments and improvements in order to achieve more outstanding results in future trading.
In foreign exchange market trading, its complexity is often overestimated. In fact, the real challenge mainly stems from the psychological game.
Long-term investors usually find it difficult to accurately predict the future market trend; medium-term investors often find it difficult to accurately capture market turning points; while short-term investors need to precisely control the market fluctuation rhythm. From a human nature perspective, the difficulty of foreign exchange trading lies in its strong competitiveness. When one party is still thinking about the initial strategy, the other party may have planned a more in-depth plan. In essence, this is an internal competition.
Short-term trading is extremely exciting due to rapid changes, while medium- and long-term trading requires investors to show stronger patience. For those with an impatient personality, holding medium- and long-term positions is likely to cause losses because the cyclical fluctuations of the market - whether rising, falling or consolidating - all require investors to hold positions in the correct cycle.
Foreign exchange trading is relatively simple at the technical level and easy to learn and master. The real challenge lies in how to control greed and fear in human nature. When making a profit, can one resist the temptation of greed and lock in profits in time? When the market falls or rises and there are lows or highs, can one overcome fear, calmly analyze and make buying and selling decisions?
Successful foreign exchange traders are often able to simplify complex problems. They have mastered the art of simplifying complexity. Therefore, foreign exchange trading is not difficult to control, and some trading strategies are difficult to fully express clearly in words.
In the field of foreign exchange trading, to achieve the goal of an annual income of one million dollars usually requires a relatively substantial initial capital.
From the industry standard perspective, outstanding fund managers may obtain an annual return rate of 20%. Based on this calculation, to achieve the goal of an annual income of one million dollars, at least 5 million US dollars of principal is required. If margin trading platforms are used, generally only 70% of the funds in the account can be used, and the remaining 30% serves as a risk buffer. Without using leverage, in fact, about 7.12 million US dollars of initial capital is required (that is, 5 million US dollars divided by 0.7). The free speech environment of the Internet allows everyone to express their views, but there are also some statements that may be unrealistic. Some people claim that it is easy to achieve a monthly income of one million US dollars through foreign exchange trading. This statement lacks universality and has no data support, and it is an inappropriate underestimation of the audience's judgment.
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