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All the problems in forex short-term trading,
Have answers here!
All the troubles in forex long-term investment,
Have echoes here!
All the psychological doubts in forex investment,
Have empathy here!

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Under the two-way trading mechanism of the foreign exchange market, the moving average is essentially a trend tracking tool, and its effectiveness has clear application boundaries.

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In a clear trend of unilateral rise or fall, the moving average can better play a role of support or resistance, providing a reliable reference for entry and position in the long and short direction. However, when the market enters a range-bound oscillation or consolidation stage and the price repeatedly crosses the moving average, most of the long and short signals generated by the moving average such as golden crosses and dead crosses are invalid or lagging signals.
Many traders ignore this feature and still mechanically rely on moving average signals to frequently open positions in a volatile market. As a result, they fall into the dilemma of "going long means falling, going short means going up", and their stops are constantly being swept away, resulting in continuous losses.
The root of the problem is not that the indicators are invalid, but that traders fail to accurately identify the current market environment - misusing trend tools for volatile market conditions will naturally be ineffective.
With the same moving average system, traders who can distinguish trends and fluctuations can take advantage of the trend and achieve stable profits; while traders who cannot distinguish the nature of the market are prone to fall into a vicious cycle of repeated stop losses.
The tools themselves are not good or bad; the key lies in whether the user knows when to use them and when to discard them. In two-way foreign exchange trading, correctly identifying the market environment is more important than blindly relying on any technical indicators.

In two-way foreign exchange investment transactions, the foreign exchange investment traders who can make money in the foreign exchange market, and those who can truly make long-term profits, are never the ones with the most flexible minds and the most clever tricks. Instead, they are mostly two types of ordinary people.

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The first category is foreign exchange investment traders who look clumsy and down-to-earth. The foreign exchange market is a two-way transaction, you can go long or short, there are opportunities for the market to rise and fall, and there are traps everywhere. Smart foreign exchange investment traders always want to catch all market trends, frequently switch between long and short positions, operate back and forth, and always want to make quick money by hunting the bottom and the top. But pragmatic and clumsy people are different. They have simple ideas, are not greedy for more, and do not make assumptions about the market. They identify a set of stable trading logic, strictly abide by their own entry, profit-taking, and stop-loss rules, do not open positions frequently at will, and do not switch long or short directions indiscriminately. I don’t have too many thoughts of opportunism. I just insist on doing what I’m told and executing correct trading actions day after day. In the foreign exchange market with extremely fast fluctuations and two-way games, those who can control their efforts, stick to the rules, and persist will have a much higher probability of profit than those who are smart.
The second category is foreign exchange investment traders who know how to introspect themselves and are willing to continue to learn and improve. The most valuable thing for this type of foreign exchange investment traders is to recognize their own trading shortcomings. Regardless of whether the account funds are 50,000, 500,000, or 1 million, they clearly know that the error tolerance rate of two-way foreign exchange transactions is extremely low. If you always trade based on your feelings, frequently chase ups and downs, and do not understand risk control, even if you make a profit in the short term, you will continue to lose money in the long term, and you will be eliminated by the market sooner or later. They are not stubborn or egotistical, dare to admit their shortcomings, and know how to borrow strength, wisdom, and professional resources. I have met many traders from various platforms. Their goals are very clear, that is, they no longer want to rely on luck to make orders, and they do not want to pay tuition fees repeatedly. They just want to learn the trading system, optimize long and short operation ideas, improve risk control logic, and change their bad trading habits. Only those who are willing to settle, continue to grow, and take the initiative to change can slowly get rid of losses and obtain stable profits in the foreign exchange market.
On the contrary, there is another type of foreign exchange investment trader who is basically destined to suffer long-term losses. This kind of people are like people who are stuck in place and struggling blindly. They repeatedly toss in the foreign exchange market, losing money when going long and losing when going short, but they never want to reflect on the problem. When the market rises, you chase the longs and when the market falls, you chase the shorts. Frequent and repeated operations in both directions will only blindly follow the trend, make emotional orders, fail to listen to any professional advice, and stick to your own wrong trading habits. In the final analysis, the laziness and luck mentality at the bottom of human nature are too strong, unwilling to learn and change, and always want to rely on luck to make a comeback. Two-way foreign exchange trading seems to be full of opportunities, but in fact it requires extremely high self-discipline and cognition. Those who do not change, do not improve, and do not abide by the rules will always only suffer repeated losses and continue to be harvested in the market.
Foreign exchange trading has never been about IQ or feel. In a two-way ups and downs market, it is about self-discipline, cognition and the ability to continue to improve. Only those who stick to the rules and are willing to learn and change can gain a long-term foothold in this market.

In the two-way foreign exchange trading market, any round of large-scale trend market operations will be interspersed with multiple washouts. This is the normal state of market development, and it is also a market phenomenon that every foreign exchange trader will encounter.

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There is no absolute one-way trend in the foreign exchange market. Whether it is a bull trend or a short trend, it will not continue to rise or fall unilaterally. After the market continues to run and accumulates a certain range of rise and fall, when it reaches key support, resistance and other core positions, it will enter a periodic washout and shock stage to connect with the subsequent trend market.
The core logic of the market wash is to continuously clean up floating positions in the market. The market will specifically wash away two types of trading funds. One type is speculative funds that have an impetuous attitude towards holding positions, focus on short-term high-frequency trading, and quickly stop profits and leave the market in pursuit of small profits. The other type is retail investors who do not have a mature trading system and blindly follow the trend of long and short positions. Under the two-way foreign exchange trading system, there will be a correction and washout in the upward trend, and a rebound and washout in the downward trend. The washout market runs through the entire trend of all levels of long and short, and will not miss any complete trend market.
Most foreign exchange traders want to completely capture the big market trends, and the core is not to take positions without thinking and passively carry orders. Holding positions without rules and blindly sticking to orders are the most common misunderstandings in two-way foreign exchange trading. During the market trend stage, you may be able to catch the entire market band by luck and obtain considerable profits by relying on dead holding, but this trading method is not stable. Once the market trends are fine-tuned, the magnitude of the washout exceeds expectations, and the market reverses, holding positions without the support of trading logic will only gradually trap the positions, and the losses will continue to accumulate, eventually causing a large account drawdown.
The core principles of long-term swing trading adapted to two-way foreign exchange trading are very clear. In the process of repeated long-short switching of the market and frequent market washouts, traders only need to stick to their own trading logic, position holding rules and risk control system. They will neither be swept away by short-term fluctuations and miss out on the general trend, nor blindly hold positions for a long time and bear excessive trading risks. This is also the core key for traders to be able to stably grasp the large-level swing market conditions of foreign exchange and achieve sustained profits in two-way trading.

In the two-way trading of foreign exchange investment, if traders want to do both long and short operations, they must thoroughly think about the setting of buying and selling points and the logic of stop loss.

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The reason why many people are too obsessed with accurate entry essentially stems from two common trading habits.
The first bad habit is to always think about buying at the lowest point and selling at the highest point, pursuing immediate profits as soon as a position is opened, and completely unable to accept normal intraday fluctuations and callbacks during the position holding process. Whether it is a slight decline after entering the market with long orders, or a short rebound while holding short orders, they will lose their mentality and leave the market in a hurry.
The second bad habit is that the stop loss setting is extremely unreasonable, and there is a serious deviation in the understanding of stop loss. Many traders want to seize the big market trend of hundreds or even thousands of points, with the goal of taking advantage of the profits brought by the unilateral trend or two-way fluctuations in the foreign exchange market. However, the actual stop loss set is only 20 or 30 points, which is pitifully narrow. You must know that the foreign exchange market fluctuates frequently and the pace of market washing is fast. Such a small stop loss space cannot withstand the normal fluctuations and cleaning of the market. It is easy to be swept out by short-term fluctuations, thus completely missing the real market trend later.
In fact, for foreign exchange transactions, as long as it is within the effective trading range, the entry price of long orders is slightly higher or lower, and the opening point of short orders is slightly deviated, these are not the key to determining the overall transaction result. What really matters is whether you can keep up with the market rhythm, enter the market smoothly and hold the position, and prevent yourself from missing the clear trends and shock opportunities. In two-way foreign exchange trading, the losses and psychological consumption caused by missing a deterministic market trend are far more serious than such small flaws as going long at a small high price or short at a small low price within a range. This is a core issue that all traders must face.

In two-way foreign exchange trading, it is a common phenomenon that traders only catch breakthroughs to enter the market, but cannot hold orders.

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If you go long for a breakthrough, or go short for a breakout, once the market reverses and fluctuates or pulls back slightly after entering the market, the profits will be taken back quickly. Most people either stop the loss passively and leave the market, or they stop the profit in advance if they make a small profit, and they do not get the full swing.
Many traders have been studying breakthrough techniques and optimizing entry forms, but they have ignored one premise: foreign exchange is a two-way market, which can be long or short. Long and short switching is frequent, and intraday fluctuations are fragmented. Choosing the right direction and entering the market accurately is only the first step in trading. What really determines making money is the ability to hold positions.
The trial set mentioned here does not mean taking the initiative to carry orders, nor does it mean to carry losses. It is to accept the normal fluctuations of the two-way market. Regardless of whether you are long or short, after a breakthrough and entering the market, the market will not move in a unilateral straight line, and there will inevitably be periodic corrections and washouts. This period of retracement of floating profits and small floating losses is a test of the market and a test of traders' cognition.
The inability to hold orders may appear to be a mental issue, but in reality it is a cognitive issue. There are two specific reasons: first, it is unclear whether the trend level of the current market is clear, and it is difficult to distinguish whether the intraday correction is a normal washout in the continuation of the trend, or a breaking signal of a long-short reversal; second, there is no clear profit target, and one wants to capture short-term fluctuations of dozens of points, but also wants to capture long-term large swings. The trading logic is confusing, and the position is naturally unstable.
The profit level of two-way foreign exchange trading is determined by the trader's own cognition and profit expectations. Only focusing on short-term fluctuations of 30 points or 50 points will instinctively stop profits and losses as soon as the market pulls back, and you will never be able to grasp the large-level unilateral market trends of hundreds or thousands of points. On the other hand, the trading positioning is to capture the profits of the large-band trend, which will automatically filter out the fine long and short fluctuations in the day and accept the normal retracement of dozens of points within the day.
There is only one core logic for holding a position: to prevent reasonable callbacks from canceling the order. In the two-way market, the long-short game is fierce, and shocks and washouts are the norm. As long as the trend structure is not broken, the key support and pressure levels are not effectively broken through, and the overall long-short direction is not reversed, short-term reverse fluctuations in the session are normal noise in the progress of the trend.
The essence of the trial set is the realization of cognition. Being able to withstand reasonable corrections, avoid short-term shocks and wash outs, and firmly hold trend orders does not rely on luck or hard work, but on having a clear understanding of the market structure, trend continuity, market level, and one's own trading cycle.
Many traders frequently look in the opposite direction, but never make big money. The reason is that their cognition does not match the market trend. Understanding breakthroughs and choosing the right direction only brings entry advantages; holding on to the trial market, taking advantage of the entire trend, and pocketing profits is the true realization of knowledge.
In two-way foreign exchange trading, there is never a shortage of entry opportunities. What is lacking is the knowledge of position positions that match the general market trend. The level of trends you can understand and the range of reasonable fluctuations you can accept will lead to huge market profits.

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13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

z.x.n@139.com

Mr. Z-X-N

China · Guangzhou

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