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 moving average has independent application value and usually does not need to rely on other auxiliary indicators.
The candlestick chart can be regarded as a vertically presented manifestation of the moving average, while the moving average can be regarded as a horizontally expanded candlestick. When the moving average is above the price, it can generally be regarded as a signal indication for going long; when the moving average is below the price, it is usually regarded as a signal prompt for going short. In this way, the market is simply divided into two areas: long and short.
The strategy of using a single moving average is relatively simple. Because it reduces the conditions required for decision-making, it makes entry operations easier to achieve. However, when a second moving average is introduced, the market will be further subdivided into four levels and four spaces, which undoubtedly increases the complexity of decision-making and makes the entry conditions more stringent.
The moving average can not only indicate the direction of the market trend, but also help traders judge the long and short status of the market. It should be noted that the moving average is not a cost line, but a trajectory and measurement tool for prices in the vertical direction. Behind the moving average reflects the flow of a large amount of funds. Although for ordinary investors, this information may not be very clear.
As for how to make a profit by relying only on one moving average, the correct approach is not simply relying on technical analysis, but combining market cycles and personal understanding of the market. Each trader has different understandings of the market, so the way they use moving averages will also be different.
In short, the effective application of moving averages needs to be combined with market cycles and adjust strategies according to personal understanding of the market. Successful trading is not only the result of technical analysis, but also involves a profound understanding of market psychology and capital flows.
In foreign exchange trading, contrarian operations can seek quick profits, but the cycle needs to be handled well to prevent blind greed.
Traders tend to be contrarian mostly for short-term profits. They often bottom-fish and top-pick in a short cycle. Behind this is greed-driven. If separated from the market cycle, trading will be blind and disorderly. Human nature determines that there are both trend-following and contrarian trading.
Contrarian trading has the opportunity for quick profits, but it needs to match the market cycle. In actual operations, one should be cautious and follow rules to reduce risks and increase probabilities. People often buy low and sell high, and they need to deeply understand the market. Trading is often affected by market sentiment. Novices' simple strategies may bring some profits.
"Buying low and selling high" is a contrarian thinking, and "chasing rallies and selling down" is a trend-following thinking. But the distinction is not absolute and involves the relationship between long-term and short-term. The key to successful trading lies in flexibly applying strategies. Mature traders make decisions according to market conditions.
In short, traders should analyze market cycle trends and their own strategies, set stop losses and take profits reasonably, add positions when profitable and reduce positions when losing, and effectively manage risks and improve success rates.
Short-term foreign exchange trading is easy to learn and can be quickly put into actual combat, but it is also easy to fall into the misunderstanding of reverse thinking.
In the foreign exchange market, although short-term trading faces many challenges, it also has unique advantages, especially in terms of frequent opening practices. Compared with long-term trading, short-term trading provides traders with more learning and practice opportunities. In the process of short-term trading, traders can quickly accumulate experience and develop a keen insight into market trends, namely the so-called "market sense". This intuition helps traders detect abnormal market conditions in the first place and make corresponding decisions.
However, short-term trading also has certain limitations. Due to the short trading cycle, it may limit the thinking of traders and make them more inclined to open positions in reverse. This tendency is not something that all short-term traders can detect in time. When they truly realize it, they often have accumulated rich experience and skills and become outstanding players in the market. But unfortunately, in this process, they may have consumed a large amount of principal and resources.
For many short-term foreign exchange traders, the biggest dilemma is that when they have accumulated enough knowledge and experience, they find that they no longer have sufficient funds to continue trading. This situation of "not understanding when having money, but having no money when understanding" often forces them to leave the market and makes it difficult for them to start over.
Many people have a wrong perception that as long as they have an excellent foreign exchange investment trading system, they can put it into use immediately and achieve success.
However, this concept fails to fully consider the complexity of trading and the differences between individuals. In fact, truly stable and profitable trading strategies are usually not easily shared, and it is difficult to obtain them even at a high cost. Although there are a large number of trading systems of uneven quality in the market, the truly effective ones are extremely limited.
If trading skills could be easily taught, then we might see the emergence of many trading or investment families. However, the centuries-old history of the capital market shows that such families do not exist. The basic principles of trading are usually relatively simple and clear, but transforming these simple principles into deep understanding and putting them into practice is a process that cannot be obtained through teaching. It requires individuals to understand through continuous practice and reflection.
The key lies in personal perseverance and the spirit of enduring hardships. Even in the process of making money, the experience of holding positions may be full of challenges. Continuously facing these challenges is not easy, and this is the biggest problem many people face in trading. Constructing a trading system suitable for oneself can reflect an individual's understanding of the market. Through simulated trading for practice and exploration, one can gradually form a trading strategy suitable for oneself, because other people's systems are not suitable for everyone and cannot ensure stable profits.
Solving problems such as multiple solutions in trading forms, psychological barriers, capital management, risk management, and execution power requires individualized strategies. The problems an individual faces may not exist for others, and vice versa. Therefore, simply sharing experiences may not have practical effects. Instead of spending time asking others, it is better to practice personally in the trading process.
A complete trading system is not just an operation manual. It also covers an individual's cognitive system and emotional management system. Just like asking the secrets and methods of Olympic champions, even if they share all their skills, it may not be useful for individuals. On the road of trading, it will be found that excellent trading systems are not scarce, and all operation details are open and transparent. What is really lacking is faith in one's own trading system and execution power.
In the practice of foreign exchange investment and trading, professional traders can perceive some generally applicable laws.
Market trends usually present several patterns such as rising, falling or sideways movement, and these patterns are reflected at different time scales. In addition, the strength of the market is an important consideration factor in trading. Generally speaking, it is directly proportional to the size of the trading position. After strong accumulation of energy, the market often shows a strong trend, but not all strong trends have an obvious accumulation stage.
When the market pulls back after a breakout but does not continue to fall, this usually indicates that the market is in a state of oscillation. In this case, the success rate of going long is usually significantly higher than that of going short. Traders should realize that the essence of trading is the control of their own trading strategies and emotions, rather than direct control of the market. Market fluctuations often reflect the fluctuations of traders' inner hearts rather than the changes of the market itself.
The market is composed of trending and non-trending states, and the trending state is the main form of market operation. History often repeats itself because certain basic patterns of human nature and market behavior are relatively constant. Before a trend is formed, the market usually gives some signs, such as price breakouts. These breakouts are often early signals of trend formation and deserve close attention from traders.
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