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 the world of forex trading, traders must understand that any technical analysis can be detached from reality. Many theories may appear consistent within a theoretical framework, but are completely impractical in real trading.
Specifically, the idea of buying at the lowest point and selling at the highest point during an uptrend, or selling at the highest point and buying at the lowest point during a downtrend, exists only in theory and is impossible to achieve in practice. Holding such beliefs is a typical characteristic of novice forex traders, reflecting a naive understanding that would be impossible even with supernatural powers.
In reality, however, novice forex traders often spend years obsessively searching for trading secrets, tools, or indicators, desperately trying to achieve the "perfect buy and sell points" envisioned in these theories. A little rational speculation reveals that if someone could achieve this, their wealth would rival that of a nation, clearly making them extraordinary. However, even those who surpassed ordinary people would be unable to do so. If this were truly possible, the world would eliminate the wealth gap, which clearly contradicts real-world logic.
The fundamental truth of forex trading is that extreme greed ultimately leads to nothing. Excessive obsession with theoretically maximal returns will only lead traders to exhaust their energy and capital in unrealistic pursuits, ultimately achieving nothing.
In forex trading, investors need to be flexible in their approach to various investment theories.
In the world of stock investing, differing perspectives often stem from different perspectives and experiences. For example, some believe that a falling stock price should lead to increased holdings, while others believe that a falling stock price should lead to liquidation. These two seemingly contradictory perspectives actually have their own applicable scenarios. For globally renowned, high-quality stocks, sudden and significant declines are often seen as opportunities to increase holdings, as these stocks offer long-term investment value. However, the situation is quite different for lesser-known, junk stocks. Junk stocks are often at risk of liquidation, so investors should consider closing their positions promptly when their share prices decline to avoid further losses.
A similar situation exists in forex trading. Long-term investments in the eight major global currency pairs are theoretically sound. During an uptrend, increasing holdings during pullbacks and during a downtrend, increasing holdings during rallies are feasible to a certain extent. However, for a few junk currencies, these theories are not applicable. Investors need to flexibly adjust their investment strategies based on the specific investment targets and market conditions.
In forex trading, over-complicating simple theories will only lead investors into confusion.
When market stakeholders obsess over a particular investment theory, making it complex and obscure, they are actually complicating a simple issue. Some forex traders are thus ensnared in superstition and worship, becoming entangled and unable to find a way out, as if trapped in a maze.
In short-term trading, the theoretical approach seems straightforward: during a bull market, buy at the lowest point and sell at the highest point, effectively closing the position at the highest point; during a bear market, sell at the highest point and buy at the lowest point, effectively closing the position at the lowest point. However, these theories are virtually impossible to implement in practice. Many short-term traders spend years searching for indicators and methods to crack this puzzle, often only to embarrass themselves. While this is the goal of all traders, achieving it completely is nearly impossible.
In contrast, a more practical approach is to buy at relatively low points and sell at relatively high points during a bull market, effectively closing the position at the relatively high point; and to sell at relatively high points and buy at relatively low points during a bear market, effectively closing the position at the relatively low point. This relatively feasible approach, if implemented, is already a success.
In forex trading, greed is inherent in all investors. Successful individuals stand out because they overcome this instinct. For those who haven't yet achieved success, overcoming this flaw will be crucial to their success. Those who can overcome this obstacle will ultimately achieve success; those who fail will find it difficult to achieve their goals.
In forex trading, small investors often struggle to maintain profitable positions for long periods when engaging in long-term investments.
This problem presents their greatest psychological challenge.
Meanwhile, large investors can easily maintain profitable positions for long periods when engaging in long-term investments. With their substantial financial resources and experience operating large sums of money, they are accustomed to large profits. Therefore, they don't become impatient in their rush for profits, remain unconcerned about potential market pullbacks, and don't worry about floating losses on their positions. This mindset gives them a natural financial advantage in their investment philosophy, making them less susceptible to the temptation of small profits.
In contrast, small investors, due to their smaller capital base and lacking experience with large-scale operations, place greater emphasis on small profits, leading to an impatience for quick profits and a fear of market pullbacks that could lead to floating losses on their positions. This results in them lacking the mental advantages of large-cap investors and instead being at a natural disadvantage, prone to being attracted to small profits.
There's a crucial rule in financial investment trading: Never use breakout trading techniques on instruments experiencing a consolidating trend. This applies to stocks, futures, and forex.
Take forex trading as an example. Traders must understand that all currencies are generally highly consolidating instruments. Why is this so? Because major central banks around the world constantly intervene in their currencies, they insist on keeping exchange rates within a narrow range. This is done to maintain currency stability, foreign trade stability, and a stable financial policy environment. Consequently, forex currencies have lacked any clear trends over the past two decades, and market volatility has been as low as a stagnant pool.
In the forex market, extended breakouts and reversal breakouts are both rare. An extended breakout occurs when prices break out and then continue in the same trend, albeit with a brief period of sideways movement. A reversal breakout occurs when prices move in the opposite direction after a period of sideways movement.
Thus, breakout trading has long been ineffective in forex trading. Veteran forex traders with five to ten years of experience will likely agree with this statement. Those who disagree are likely newcomers, who, over time, will understand that forex currencies are highly volatile instruments, and breakout trading simply doesn't work here.
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+86 137 1158 0480
+86 137 1158 0480
+86 137 1158 0480
Mr. Zhang
China · Guangzhou