Forex investment experience sharing, Forex account managed and trading.
MAM | PAMM | POA.
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 foreign exchange investment transactions, the trader's cognitive space largely determines his profit space.
When traders enter the market, their profit sources mainly depend on the market dynamics within their cognitive scope. If the trader's cognitive space is limited, then his profit space will be limited accordingly.
For example, if a trader is accustomed to using hourly charts for trading, his profit space is usually limited to the price fluctuation range within 1 hour. Although this short-term trading perspective can capture immediate market changes, its profit potential is relatively small. In contrast, if a trader can analyze the market from the perspective of the daily chart cycle, his profit space will expand to the price fluctuation range within 1 day. This medium-term trading perspective can provide broader opportunities and bring greater profit potential. Further, if a trader can trade from the perspective of the weekly chart cycle, his profit space will expand to the price fluctuation range within 1 week. This long-term trading perspective can capture a more macro market trend, thereby achieving higher profits.
The trader's cognition, pattern and capital scale jointly determine his profit space. If a trader is a short-term forex trader, his capital scale and trading cycle usually cannot reach the level and pattern of long-term investors. Therefore, short-term traders should not envy the profit space of long-term investors, because the two are in different trading stages.
Similarly, long-term investors should not underestimate the profit space of short-term traders, because long-term investors also gradually accumulate and evolve from short-term traders. Of course, if the trader is already a million-dollar owner before entering the forex market, his capital scale and trading strategy may be different, giving him greater flexibility and profit potential in the market.
In forex investment transactions, traders need to pay attention to the time period of support and resistance zones.
Support and resistance zones that are too long or too short usually lack practical reference value. Only support and resistance zones within a moderate time period have real significance.
From the perspective of the foreign exchange futures rotation cycle, it is usually the third week of March, June, September and December each year. This cycle shows that a relatively suitable foreign exchange price cycle may be 3 months. During this cycle, the behavior of market participants and the market structure are relatively stable, so the 3-month support and resistance zones are more likely to reflect the actual dynamics of the market.
If the time period of the support and resistance zones is too long or too short, the power of buyers and sellers and the market structure may have changed significantly. In this case, using an invalid cycle as a reference may lead to potential losses. Therefore, when analyzing the support and resistance zones, traders should choose a time frame that matches the market cycle to improve the accuracy of trading decisions.
In foreign exchange investment transactions, if traders are not doing short-term trading, but are still watching the market all day, this usually indicates that they may be in one of two situations.
One is that they are always in a floating loss state, hoping that the price will reverse as soon as possible to realize profits; the other is that they do not have a complete trading strategy plan, and are ready to enter the market at any time and make random trades. This behavior is not only easy to lead to blind trading decisions, but also may increase unnecessary risks due to frequent trading.
On the contrary, if traders have a clear trading plan, they will be more calm. They will wait for the price to enter the range of their trading system before they start to pay attention. For example, when the price reaches a strong support or resistance area, they will continue to pay attention and prepare to enter the market to establish a long-term position. Once they enter the market, they will focus on executing the plan and no longer pay attention to price fluctuations frequently until the price reaches a suitable closing position, realizing profits and pocketing them.
Without a trading plan, traders will fall into the dilemma of random trading. They will stare at the price trend every day and constantly look for seemingly good entry opportunities. This behavior is not only easy to lead to blind trading decisions, but also may increase unnecessary risks due to frequent trading. Therefore, formulating a clear trading plan is crucial to avoid this random trading behavior.
In foreign exchange investment transactions, "not eating the head and tail of the fish, but only the body of the fish" is an idealized explanation of the principles and strategies of short-term trading.
This statement vividly describes that traders try to capture the most stable and profitable part of the market trend, namely the "body of the fish", while avoiding the early and late stages of the trend, namely the "head" and "tail", which are usually accompanied by high uncertainty and risk.
In the rising transactions of foreign exchange investment day trading, the tail stage is the accumulation stage of the trend. At this time, traders can place rising breakthrough orders and lock in rising orders to prevent missing the rising opportunity. When the trend continues to rise and reaches the head stage of the day, traders need to choose the opportunity to close the position, take the bag and complete the transaction, so as to "eat" the body of the fish.
Similarly, in the falling transactions of foreign exchange investment day trading, the tail stage is also the accumulation stage of the trend. At this time, traders can place a downward breakout order and lock in a downward order to prevent missing the opportunity to fall. When the trend continues to fall and reaches the fish head stage of the day, traders need to choose the opportunity to close the position, lock in the profit, complete the transaction, and "eat" the fish body.
However, why is it said that "not eating the head and tail of the fish, only eating the body of the fish" is just an idealized explanation of the principles and strategies of short-term trading? This is because human greed and fear often interfere with traders' decisions.
According to human greed, traders will hate to enter the market at the fish tail stage, because the trend has already gone for a while, and they will think: "Why do I enter the market after the trend has gone so far?" This hesitation will cause traders to miss the opportunity to enter the market.
According to human fear, traders will hate to wait for the trend to go all the way to the fish head stage, because "people will hold on to losses, and people will run fast when they make profits." Traders often close their positions early because of fear of risks, earning only a little bit of profit, instead of waiting for the trend to finish, so they cannot really "eat" the fish body.
In foreign exchange investment transactions, the main basis for judging whether a trader is a long-term investor or a short-term trader is the length of time they hold their positions, rather than the technical chart period they use.
Traders should identify themselves as long-term investors or short-term traders based on the actual length of time they hold their positions.
For example, if a trader uses a 1-hour chart, but their positions are often held for a year or even several years, they are still long-term investors. In this case, although the trader is referring to a short-term chart, their trading strategy and goals are long-term, so their behavior is more in line with the characteristics of a long-term investor.
On the contrary, even if a trader uses a 1-week chart, but their positions are often held for only one or several days, they are still short-term traders. In this case, although the trader is referring to a long-term chart, their trading strategy and goals are short-term, so their behavior is more in line with the characteristics of a short-term trader.
Therefore, the identity and trading strategy of a trader should not be judged solely by the technical chart period they use, but by their actual position holding time. The position holding time is the real criterion for judging whether a trader is a long-term investor or a short-term trader.
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+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou