Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
The advantage of foreign exchange investment traders focusing on candlestick lies in being able to always concentrate on the price itself.
Those foreign exchange investment traders who can achieve profitability only by observing candlestick charts usually reach a relatively high level in trading skills and market insight. This trading method is sometimes called "Price Action Trading". Its core lies in obtaining information directly from price changes instead of relying on other technical indicators. The advantage of focusing on naked candlestick is that it enables traders to always focus on the price itself because price is the most direct manifestation of market supply and demand. It should be made clear that this method is not more advanced than other technical trading methods but is merely a tool to assist traders in making decisions.
As trading experience accumulates continuously, many investors will gradually simplify their trading systems and may eventually only use candlestick and moving averages. This trend is naturally formed and not determined by external guidance but is the result of traders' self-discovery and adaptation in the long-term practice process. Even if some traders may not agree with this method at the initial stage, over time, they may also gradually recognize the effectiveness of this method.
Breakthrough trading strategies can be divided into several different types according to the timing of market breakthroughs, including before the breakthrough occurs, after the breakthrough occurs, and after the price retraces. Each type of transaction has specific risk and return characteristics.
Pre-retracement trading: This strategy enters the market before the price reaches the key resistance level. It is usually operated when the two-way tradable price is close to the previous low or high. The risk of this strategy is that if the price fails to reverse, it may face losses.
Post-breakthrough trading: Enter immediately after the price breaks through the key level. The advantage of this strategy is that it confirms the effectiveness of the breakthrough. However, its shortcoming is that some profits may be missed because the price may move rapidly after the breakthrough.
Post-retracement trading: After the price breaks through the key level, wait for the price to retrace to a certain support level or near the moving average before entering again. This strategy aims to capture the secondary extension of the price, but it also requires patience to wait for an appropriate retracement timing.
When considering the safety of trading, some traders may prioritize strategies in the following order:
Pre-breakthrough trading: Set a pending order when the two-way tradable price is close to the previous low or high and wait for the price to reverse.
Post-retracement trading: Enter immediately after the moving averages cross.
Pre-breakthrough pending order trading: Set a breakout order at the high or low of a large candlestick chart. When the price breaks through, the pending order is automatically executed.
Post-breakthrough trading: After the price breaks through a large candlestick chart, if the price retraces, add positions.
Each strategy has its applicable market conditions and personal risk preferences. Traders should choose the most suitable entry timing according to their own trading style, market analysis, and risk management strategy.
The effectiveness of a moving average trading system is not determined by the number of moving averages, but by the way traders use them.
Here are several common moving average trading systems:
Single moving average system: Use a single moving average, usually a moving average (MA), as the basis for trading decisions. This system has the characteristics of simplicity and clarity, is easy to understand and execute, and can effectively reduce interference factors in trading decisions.
Double moving average system: Adopt two moving averages with different periods, such as short-term and long-term moving averages. When the short-term moving average crosses the long-term moving average, it can be regarded as a buy or sell signal.
Three moving average system: Add a third moving average on the basis of the double moving average system to provide more trading signals and confirmations. Although this system can provide more information, it also increases complexity.
There is no definite answer as to how many moving averages to choose to use, because each trader has their own preferences and trading styles. The key is to find a system that suits oneself, which can provide clear trading signals and conform to personal risk management strategies.
For beginners, using multiple moving averages, such as the Guppy multiple moving averages, may enhance their confidence because these moving averages can provide more market information. However, as trading experience accumulates, many traders will tend to simplify their trading systems and remove unnecessary complex elements.
Ultimately, traders will adjust the number and settings of moving averages according to their own experience and preferences. It is important to have a solid foundation, such as a base position, which can provide traders with confidence and flexibility to adjust positions and entry points flexibly according to market conditions.
In the field of foreign exchange investment, the reason why professional traders can achieve a stable profit state lies in their having gone through a strict screening process and long-term practical accumulation.
Not all individuals participating in foreign exchange investment trading can be given the title of "foreign exchange investment trader". According to industry standards, only those foreign exchange investment traders who can achieve at least 10% annualized capital appreciation in continuous three years of live trading are qualified to be called foreign exchange investment traders. This standard applies to funds of various scales, and both individual foreign exchange investment traders and institutional foreign exchange investment operators must follow it.
Foreign exchange investment professional traders refer to those professionals who take foreign exchange investment trading as their main source of income. They may operate independently or serve financial institutions. As long as they meet the above profit standards, regardless of the size of their operations, they can be recognized as foreign exchange investment professional traders. For independently operating foreign exchange investment traders, this standard may be adjusted appropriately. However, for those foreign exchange investment traders who expect to join financial institutions, if they fail to meet the strict requirements of the institutions, it is usually difficult to obtain corresponding positions.
Foreign exchange investment financial institutions usually do not look for foreign exchange investment traders through public recruitment, because doing so will increase the cost and complexity of screening. They are more inclined to expand the trading team through internal cultivation or special invitation. Only under special circumstances, such as when an institution urgently needs to increase the number of traders, will they consider external recruitment. In this case, independent foreign exchange investment traders who fail to meet the internal standards often find it difficult to cross the threshold of external recruitment.
Compared with stock trading, foreign exchange trading has unique advantages.
One of the more prominent ones is that there is no delisting risk. Given the large scale and high liquidity of the foreign exchange market, currency prices usually do not experience violent fluctuations, thus providing investors with a relatively stable trading environment. In addition, if investors decide to hold positions for a long time without using leverage and have enough time to wait for market reversal, then under certain circumstances, they have the opportunity to recover from a loss-making state. However, this strategy is not without risks, because market conditions may not develop as expected by investors, or it may take a long time to achieve profitability.
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