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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 foreign exchange investment transactions, the concept of stop loss is extremely complex. If foreign exchange investment traders want to be able to integrate and deal with transactions with ease, they must accurately grasp the key to stop loss.

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Under normal circumstances, once you insist on placing an order, you must set a stop loss. This practice often indicates that you are trading short-term and your position is relatively heavy. On the contrary, when operating with a light or micro position, even if you place an order at will and do not set a stop loss, it generally does not cause major risks.
Stop loss occupies an important position in the free education content of foreign exchange platform providers and is a must-learn course in training. The reason behind this is that short-term traders and foreign exchange brokers are on the opposite side of the interest game, and the stop loss set by short-term traders happens to be the source of profit for platform providers. Of course, for successful short-term traders, setting a stop loss is essential, but it must be understood that if the stop loss position is far away from the support area or resistance area, it is a random setting without any basis. In particular, if you choose the entry position at random, no matter how many points of stop loss are set above or below the entry price, it is an unreasonable stop loss setting. A successful short-term trader must first clarify the correct entry method and then determine the correct stop loss method.
Stop loss occupies an important position in the free education content of foreign currency platform providers and is a must-learn course in training. The reason behind this is that short-term traders and foreign exchange brokers are on the opposite side of the interest game, and the stop loss set by short-term traders happens to be the source of profit for platform providers. Of course, for successful short-term traders, setting a stop loss is essential, but it must be understood that if the stop loss position is far away from the support area or resistance area, it is an unreasonable setting without any basis. In particular, if you choose the entry position at random, no matter how many points of stop loss are set above or below the entry price, it is an unreasonable stop loss setting. A successful short-term trader must first clarify the correct entry method and then determine the correct stop loss method.
When trading a short-term upward trend, the support area formed by the retracement during the upward process is the correct entry point. The stop loss should be set below the support zone in the smaller cycle of the entry price. This is the correct stop loss area. Similarly, when trading a short-term downward trend, the resistance area of ​​the retracement during the decline is the correct entry point. The stop loss should be set above the resistance zone in the smaller cycle of the entry price. This is the reasonable stop loss area. However, long-term investors mainly adopt the strategy of continuous increase in positions, and each increase in position is extremely light. They basically do not need to consider the stop loss problem because the position of long-term investors is more arbitrary.

In short-term foreign exchange trading, setting a stop loss is a key strategy for managing risks.

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When setting a stop loss, traders should comprehensively consider the entry position, support level and resistance level to ensure that the stop loss point is both reasonable and effective.
Entry position:
The importance of the entry position: The entry position is the starting point of the transaction and determines the initial risk of the transaction. A reasonable entry position can provide a reference point for setting a stop loss. For example, if a trader enters near a support level in an uptrend, the stop loss point can be set somewhere below the support level to ensure that the stop loss can be stopped in time when the market reverses.
The relationship between entry position and stop loss: The closer the entry position is to a key support or resistance level, the easier it is to set a stop loss point. For example, if you enter the market above a clear support level, the stop loss can be set at a reasonable distance below the support level to avoid being stopped out due to small market fluctuations.
Support level:
The role of support level: Support level is an area of ​​resistance that may be encountered when prices fall, usually composed of previous lows, moving averages or trend lines. In short-term trading, support level is an important reference point for setting stop loss. If the price falls below the support level, it may indicate that the market trend has reversed, and at this time the stop loss can effectively control the loss.
How to use support level to set stop loss: In an uptrend, if a trader enters near a support level, the stop loss can be set somewhere below the support level. For example, if the entry position is above EMA144, the stop loss can be set at a reasonable distance below EMA144 to ensure that the stop loss can be stopped in time when the market reverses.
Resistance level:
The role of resistance level: Resistance level is the resistance area that may be encountered when the price rises, usually composed of previous highs, moving averages or trend lines. In short-term trading, resistance level is also an important reference point for setting stop loss. If the price breaks through the resistance level, it may indicate that the market trend has reversed, and the stop loss can effectively control the loss at this time.
How to use resistance level to set stop loss: In a downtrend, if the trader enters the market near the resistance level, the stop loss can be set somewhere above the resistance level. For example, if the entry position is below EMA144, the stop loss can be set at a reasonable distance above EMA144 to ensure that the stop loss can be stopped in time when the market reverses.

In foreign exchange investment transactions, traders often face a confusion: should they choose breakthrough trading or callback trading? Should I trade on the left or on the right?

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The root cause of this confusion is that short-term foreign exchange traders do not have a clear identity and are not clear whether they are long-term investors or short-term traders.
Breakout trading and pullback trading:
Breakout trading: Breakout trading refers to entering the market with a forward order at the previous high or low. This method is suitable for short-term traders because it relies on the market's immediate breakthrough signals and pursues quick profits.
Pullback trading: Pullback trading refers to entering the market with a reverse order at the previous high or low. This method is suitable for long-term investors because it relies on the market's pullback and confirmation signals and pursues long-term stable profits.
Left-side trading and right-side trading:
Right-side trading: Right-side trading refers to entering the market with a forward order at the previous high or low. This method is suitable for short-term traders because it relies on the market's immediate breakthrough signals and pursues quick profits.
Left-side trading: Left-side trading refers to entering the market with a reverse order at the previous high or low. This method is suitable for short-term traders because it relies on the market's immediate breakthrough signals and pursues quick profits.
This method is suitable for long-term investors because it relies on market callbacks and confirmation signals to pursue long-term stable profits.
From another perspective, right-side trading can be regarded as short-term breakthrough trading, while left-side trading can be regarded as long-term callback trading. Many people in the market deliberately create some strange terms to mislead new short-term foreign exchange traders, which further increases the confusion of newcomers.
Solution:
Clear identity positioning: Traders need to first clarify their identity, whether they are long-term investors or short-term traders. Long-term investors pay more attention to long-term trends and stable profits, while short-term traders pay more attention to instant signals and quick profits.
Choose the right trading method: Once you have determined your identity positioning, the trading method will naturally become clear. Long-term investors should choose callback trading and left-side trading, while short-term traders should choose breakthrough trading and right-side trading.

In short-term foreign exchange trading, the appearance of double tops or double bottoms has different effects on different types of traders.

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Long-term investors and short-term traders show completely different strategies and mindsets when dealing with these patterns.
How long-term investors deal with it:
Close half of the position: When a double top or double bottom pattern appears, long-term investors usually choose to close half of the position and keep the other half of the position to let the profit continue to run. This strategy not only locks in part of the profit, but also retains the opportunity to continue to make profits.
Light position strategy: Long-term investors generally have a light position, and they usually adopt a strategy of adding light positions all the way. Even if the market trend reverses, the potential loss is relatively small due to the light position. Therefore, they will not be too entangled in the double top or double bottom pattern, nor will they adjust their positions frequently.
How short-term traders deal with it:
Fear of gain and loss: When a double top or double bottom pattern appears, short-term traders often have a tangled and fear of gain and loss mentality. This is because their positions may be heavy, and they are worried that a reversal of the price trend will lead to the loss of lucrative profits.
Frequent adjustments: Short-term traders often adjust their positions frequently, trying to capture short-term profits in market fluctuations. Although this strategy may bring quick returns, it also increases the complexity and risk of trading.
Summary:
Long-term investors can better deal with double tops or double bottoms through light position strategies and flexible position management, avoiding unnecessary entanglement and worries. Short-term traders are more susceptible to market fluctuations due to their heavy positions and need to handle these patterns more carefully.

In foreign exchange investment transactions, long-term foreign exchange investors need to adhere to probabilistic thinking and monistic thinking when adding positions midway, which is the key to achieving long-term stable profits.

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During the uptrend:
Enter the market without hesitation: When the currency price retreats to the support area, long-term foreign exchange investors should enter the market without hesitation. At this time, investors should focus on the high-probability direction of the trend, that is, the upward trend, and not be disturbed by short-term fluctuations.
Adhere to high-probability thinking: From the perspective of high-probability thinking, investors should believe in the continuity of market trends. Retracements in an upward trend are usually temporary, while the continuity of the trend is a high-probability event.
Adhere to monistic thinking: Monistic thinking means that investors should focus on one direction, that is, the upward direction. Don't have the idea of ​​waiting or betting on two directions, otherwise you will lose clear trading principles and strategies.
Place more light orders: In order to manage risks, investors should place more light orders. This can avoid greater risks caused by trend reversals, and at the same time gradually increase positions when the trend continues to obtain more profits.
During the decline of the big trend:
Enter the market without hesitation by placing a sell order: When the currency price retreats to the vicinity of the resistance zone, long-term foreign exchange investors should enter the market without hesitation by placing a sell order. At this time, investors should focus on the high-probability direction of the trend, that is, the downward trend, and not be disturbed by short-term fluctuations.
Adhere to high-probability thinking: From the perspective of high-probability thinking, investors should believe in the continuity of market trends. Retracements in a downward trend are usually temporary, while the continuity of the trend is a high-probability event.
Adhere to monistic thinking: Monistic thinking means that investors should focus on one direction, that is, the downward direction. Don't have the idea of ​​waiting or betting on two directions, otherwise you will lose clear trading principles and strategies.
Put up more light orders: In order to manage risks, investors should put up more light orders. This can avoid greater risks caused by trend reversals, and at the same time, you can gradually increase your positions when the trend continues to gain more profits.

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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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