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Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management

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In the construction of the foreign exchange investment trading strategy system, the relationship between adding positions on pullbacks and adding positions on breakthroughs is worth exploring in depth.

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In fact, adding positions on pullbacks can be seen as another way of presenting adding positions on breakthroughs. Comparing and analyzing these two strategies will help investors understand the essence of foreign exchange trading more comprehensively.
When making trading decisions, a large number of investors will struggle to choose a breakthrough trading strategy or a pullback trading strategy. This struggle often stems from a lack of understanding of the risk and return characteristics of the two strategies. However, it is worth noting that the accuracy of market direction judgment is the key factor in determining the success or failure of a transaction. If the market direction cannot be correctly judged, both breakthrough trading and pullback trading may eventually lead to losses; once the market trend can be accurately grasped, both strategies can create returns for investors. From a risk perspective, breakthrough trading may face the risk of false breakthroughs, while pullback trading may face the risk of trend reversal. However, the response to these risks depends on the accurate judgment of market direction.
From the perspective of price trend, when investors judge the direction correctly, the pullback is not a reversal of the trend, but a accumulation of strength for a new breakthrough on the price step formed by the previous breakthrough. At this time, the behavior of adding positions in the pullback area is essentially the same as adding positions during the breakthrough. Take the trend of the Australian dollar against the Canadian dollar as an example. In the upward trend, the price rises again after each pullback and breaks through the previous high. Adding positions during the pullback and breaking through the high are both in line with the development of the trend. In short, adding positions during the pullback phase after the trend development is actually adding positions during the breakthrough.
Once investors thoroughly understand this point, they have found the key to open the door to profit in foreign exchange trading. But it should be clear that whether it is the first time to open a position or to add positions later, investors must be prepared to bear floating losses. In the process of trading, market uncertainty will cause price fluctuations, resulting in floating losses. It is crucial to maintain firm belief and patience in this process, and trading strategies should not be easily changed because of short-term losses.
There are obvious differences in the speed of comprehension of this core trading concept by different investors, which is caused by different personal cognitive abilities and market experiences. Some investors are good at quickly capturing market signals through technical analysis, so as to quickly understand the key points of the strategy; while some investors pay more attention to fundamental analysis and need more time to verify the effectiveness of the strategy. For those investors who understand later, sufficient capital can provide them with a more relaxed trading environment, giving them more opportunities to gradually master this key trading strategy in market practice. At the same time, investors can also accelerate their understanding and mastery of trading concepts by participating in professional training and communicating with peers.

In foreign exchange investment and trading, traders' strategies should be simple.

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Simplicity is the key to success, because complex strategies are often difficult to understand and implement, which can easily lead to confusion and mistakes. However, in China, in the process of spreading foreign exchange investment and trading, foreign exchange platforms and education and training industries often complicate trading strategies. They have proposed countless strategies and hundreds of methods, which may be a conspiracy. The purpose of this complexity may be to confuse foreign exchange investment traders, lose their principal before they understand it, and eventually leave the market.
In fact, the entry method and strategy of foreign exchange investment trading can be very simple. Breakout is an entry method and a trading strategy; callback is also an entry method and a trading strategy. The two methods are just named and defined differently. In Europe and the United States, foreign exchange investment traders usually use only four basic strategies: buy stop (breakout buying strategy), buy limit (callback buying strategy), sell stop (breakout selling strategy) and sell limit (callback selling strategy). These four strategies cover all basic trading scenarios, simple and effective.
If a foreign exchange investment trader can one day agree that there are only these four basic strategies for foreign exchange investment trading, then he has taken an important step on the road to trading. This shows that he has gotten rid of the interference of complex strategies and focused on the core trading logic. This simplification not only helps to improve trading efficiency, but also reduces the psychological pressure caused by complexity. Therefore, when a trader can accept and apply these four basic strategies, he has taken an advantage in foreign exchange investment trading and become a winner.

In the practice of foreign exchange investment and trading, the use of stop-loss strategy has become a key factor in distinguishing long-term investment from short-term speculation.

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Foreign exchange long-term investment is based on the grasp of the long-term market trend, emphasizes the firm belief in responding to market changes, and does not regard stop-loss as a necessary trading link. On the contrary, those trading behaviors that constantly emphasize the importance of stop-loss are essentially short-term speculation. Such traders try to capture short-term price fluctuations through frequent trading, and regard short-term ups and downs as the key to profit. In fact, they are playing a game full of uncertainty.
Foreign exchange long-term investors use several years as the investment cycle, focusing on the evolution of the macroeconomic environment, industry development trends, and long-term changes in market supply and demand. They are not afraid of the sharp fluctuations in the short-term market, because these fluctuations are insignificant in the face of long-term trends. This investment strategy requires investors to have strong psychological qualities and firm investment beliefs, and to be able to stick to their original intentions in the ups and downs of the market and wait for the final realization of the trend.
Foreign exchange short-term speculation relies entirely on luck and intuitive judgment of the short-term market. Since the short-term market is affected by many complex factors and the trend is difficult to predict, short-term traders often enter and exit the market frequently and rely on luck to find trading opportunities. In order to control risks, they regard stop loss as an important part of trading, but even so, it is difficult to avoid losses due to market uncertainty. This trading method that relies on luck is in sharp contrast to the model of long-term investment that relies on faith and professional judgment, and also determines the completely different investment results of the two.

For foreign exchange investment traders, strict screening and filtering are essential when learning trading experience.

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There are a large number of various trading experience articles in the current market, and the long-winded content often fails to touch the core points of the transaction. "The true scriptures are a single sentence, and the false are ten thousand volumes of books." This saying that has been precipitated over the years deeply reveals the law of knowledge dissemination. In the study of foreign exchange investment, indulging in reading lengthy articles will not only fail to obtain valuable information, but will also fall into confusion of thinking and hinder the improvement of one's own trading ability.
The length of the article is often intrinsically related to the author's professional level. Those articles with long and boring content are actually a reflection of the author's own lack of deep understanding of trading knowledge. For example, some articles only mechanically list the steps when explaining trading strategies, but do not explain the logic and applicable scenarios behind the strategies; some articles over-rely on subjective assumptions when analyzing market conditions, but lack data and factual support. In order to cover up this defect, they confuse readers by piling up words and misleading readers' judgment.
Foreign exchange investment traders must maintain a clear understanding and not be swayed by such articles. When screening articles, you can first browse the abstract or table of contents of the article to quickly understand its core ideas; for some highly professional content, you can check relevant materials for verification to determine whether there are logical loopholes. In addition, investors can also pay attention to the publishing platform and publishing time of the article. Generally speaking, articles published on official platforms by authoritative financial institutions or well-known traders are relatively credible. At the same time, the foreign exchange market is constantly changing, and you should give priority to articles published recently to ensure that the experience you have learned is in line with the current market environment. Learn to identify truly valuable trading experience and avoid wasting time on ineffective learning, so as to lay a solid foundation for improving your own trading level.

In foreign exchange investment and trading, most traders who question the strategy of "buy low and sell high" are short-term traders, and short-term trading is essentially gambling.

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On the contrary, as long as you stick to the long-term investment strategy, in the layout of the rise for several years, traders will adopt the strategy of "buy low and sell high", constantly buy when the price is low, then hold the position for several years, and sell and close the position in the historical high area. Similarly, in the layout of the decline for several years, traders will adopt the strategy of "sell high and sell high and buy low", constantly sell when the price is high, then hold the position for several years, and buy and close the position in the historical low area.
Why can't short-term trading use long-term strategies? The reason is that short-term traders hold positions for a very short time, usually only tens of minutes or hours. After opening a position, they basically face the reality of floating losses. Due to the lack of time and patience to wait for the trend to fully extend, they often stop losses quickly. Therefore, they will never understand the true meaning of "buy low, buy low and sell high; sell high, sell high and buy low". In the end, they can only leave the foreign exchange market. Those who can stay are those who truly understand these strategies. Otherwise, they will leave the foreign exchange market sooner or later.
It is worth noting that the eight words "buy low, sell high" are themselves talking about the strategy of two-way trading. However, these eight words are not applicable to stock investment, because stocks cannot be nakedly shorted, so "sell high" is difficult to use frequently in stock investment. Don't underestimate the mantra in investment and trading. In fact, most people don't understand the essence of it at all. Including the eight words "buy low, sell high", how many people really understand that this is a rule that can only be used for two-way trading products?

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13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou

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