Forex investment experience sharing, Forex account managed and trading.
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Forex prop firm | Asset management company | Personal large funds.
Formal starting from $500,000, test starting from $50,000.
Profits are shared by half (50%), and losses are shared by a quarter (25%).
Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management
In the world of foreign exchange investment and trading, foreign exchange investment traders should be aware of the connotation of the light position long-term strategy, which is a strategic and tactical choice with profit-taking as the core without setting stop loss.
However, the basis of this strategic and tactical decision is light position operation. By continuously establishing light positions, advancing transactions, holding positions and gradually accumulating profits, the positions will be closed until enough profits are accumulated. This accumulation process is a long-term process, usually taking a year or even longer.
Of course, if foreign exchange investment traders implement the profit-taking but not stop loss strategic and tactical decision based on light positions, and combine it with the long-term carry investment strategy, the effect will be more significant. Every day, the interest generated by many light positions continues to accumulate, and the total interest difference formed in the end is quite considerable. Even if some light positions have a certain floating loss, these losses are insignificant in the face of the huge total interest difference. Even if someone persuades to stop loss, investors should remain firm and unmoved.
Those interested foreign exchange traders who can deeply study and deeply understand this comprehensive strategy of combining light long-term and long-term arbitrage will be grateful for my sharing when they reap rich profits. I only pass on knowledge by sharing articles, I do not actively teach others, nor participate in interactive exchanges, and do not reply to any interactive messages. Interested investors will naturally get what they need from my articles.
From the perspective of risk and return, traders who make money and lose money in the long run show completely different behavior patterns.
Long-term profitable traders always put risk control first. They control the risk exposure of each transaction at an extremely low level through light position operations. This cautious fund management strategy enables them to remain stable in the ups and downs of the market, and even if they suffer continuous losses, it will not cause a fatal blow to the account funds. They know that in the foreign exchange market, survival is more important than profit. Only by ensuring the safety of funds first can we talk about continuous profit.
Traders who suffer long-term losses often ignore risks and blindly pursue high returns, and heavy positions become their norm. In their eyes, high positions mean higher potential returns, but they ignore the huge risks hidden behind them. Once heavy positions encounter a market reversal, the account funds will shrink rapidly, and frequent use of leverage for short-term trading will multiply the risks. This trading method that only focuses on returns and ignores risks will eventually push traders to the brink of bankruptcy.
Foreign exchange investment is a game of balancing risks and returns. Although the light position long-term strategy may not have high returns in the short term, it can effectively reduce risks and ensure that traders survive in the market for a long time. Over time, small returns continue to accumulate and will eventually turn into considerable profits. Although heavy position short-term trading may bring short-term huge profits, it is at the expense of capital security. It is like dancing on the edge of a knife, and it will be shattered if you are not careful. Therefore, in the foreign exchange market, choosing a light position long-term investment strategy is a wise move to achieve long-term profitability.
In foreign exchange investment transactions, investors need to clearly distinguish between bottom-picking and low-buying, and top-picking and high-selling.
In the long process of an upward trend or a consolidation upward trend, the lower edge of the trend line or the support line is an ideal area for opening a position. This strategy of buying on dips is called low-buying. On the contrary, in a downward trend or a consolidation downward trend, the upper edge of the trend line or the resistance line is an ideal area for opening a position. This strategy of selling on rallies is called high-selling.
In the historical bottom area, after a long period of consolidation, if a large positive candlestick chart breaks through, investors can start to enter the market in batches in the breakthrough area, which is called bottom-picking, which belongs to right-side trading or breakthrough trading. Similarly, in the historical top area, after a long period of consolidation, if a large negative candlestick chart breaks through, investors can start to enter the market in batches in the breakthrough area, which is called top-picking, which also belongs to right-side trading or breakthrough trading. However, the market is not always so regular. Once some foreign exchange investment products break through, they may continue to rise or fall and never look back. This is why large investors tend to enter the market slowly and lightly in advance. It takes a process to build a position, and large investors have sufficient funds and can seize more entry opportunities.
In theory, retail investors are usually not recommended to buy at the bottom or buy at the top. Because retail investors have limited funds and fewer entry opportunities. In contrast, large investors have sufficient funds and many entry opportunities. If they do not enter the market in advance, they cannot effectively build a position. In fact, most of the bottom-picking or top-picking operations of large investors are left-side transactions. However, the truth is that the truly scarce opportunities to buy at the bottom or buy at the top are often prepared for retail investors with strong funds, superb skills and rich experience.
From the perspective of risk-return balance, the strategy of "treating false breakthroughs as true breakthroughs and responding to true breakthroughs as false breakthroughs" provides a new way of thinking for foreign exchange investment traders.
In the foreign exchange market, the judgment of true and false breakthroughs is full of randomness and uncertainty. Trying to accurately distinguish between the two often leads to the dilemma of "the harder you try, the more confused you become", increasing unnecessary transaction costs and risks.
The light position long-term strategy is like a solid foundation that supports this unique trading strategy. When traders keep their positions at an extremely low level, short-term market fluctuations, whether it is the bluff of a false breakthrough or the initial trend of a true breakthrough, are unlikely to pose a threat to the security of account funds. As a long-term investor, continue to build positions and hold them firmly, waiting for the trend to become clear in the long river of time. Under this strategy, the importance of true and false breakthroughs is greatly weakened, because the setting of light positions has already controlled the risk of a single transaction within an acceptable range, and long-term positions provide the possibility of obtaining trend returns. In this way, traders cleverly achieve a balance between risk and return, and embark on a steady investment path in the ever-changing foreign exchange market.
In the ever-changing foreign exchange investment and trading, the handling of true and false breakthroughs is a compulsory course for every trader.
There is a controversial trading concept, that is, false breakthroughs are traded as true breakthroughs, trying to seize the opportunity of short-term market fluctuations; real breakthroughs are treated as false breakthroughs, so as to avoid possible market risks.
In terms of position holding and stop loss strategies, the light position and long-term trading model is advocated, and it is believed that there is no need to stop losses easily even if floating losses occur. From the perspective of market game analysis, if traders with sufficient funds stop losses blindly, they are actually delivering benefits to stakeholders such as platform providers. Such stop loss behavior is too dogmatic. Traders with small amounts of funds who frequently stop losses will eventually exhaust their original funds, making it difficult to achieve sustainable development in the foreign exchange investment market. They need to flexibly use trading strategies to cope with complex changes in the market.
13711580480@139.com
+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou