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Forex multi-account manager Z-X-N
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Assists family office investment and autonomous management
In forex trading, traders generally believe that long-term investments have a higher probability of success. This consensus is supported by big data statistics, which show that long-term investments have advantages over short-term trading.
Short-term trading, especially high-frequency trading, incurs significant spread costs. While these costs may seem insignificant individually, they can significantly erode profits over time. In contrast, long-term investing reduces trading frequency, thereby lowering spread costs and improving capital efficiency.
Short-term fluctuations in the forex market are often unpredictable and exhibit a high degree of randomness. In the long term, the probability of short-term traders achieving financial freedom is low. Long-term investing can better smooth out short-term market fluctuations and achieve stable returns by capitalizing on long-term trends.
Short-term trading places significant psychological and physical strain on traders, especially in high-frequency trading, which requires constant monitoring of market dynamics and quick decision-making. This intense stress can negatively impact a trader's health, particularly their heart and internal organs. For older or infirm traders, long-term investing is a healthier and more sustainable option.
Despite the many advantages of long-term investing, for small traders, completely abandoning short-term trading can make it difficult to accumulate initial capital. While short-term trading has a lower success rate, it can, with luck, yield significant gains in the short term. However, in the long run, most short-term traders will ultimately face losses and exit the market.
Forex trading success depends not only on the chosen strategy but also closely on the trader's personal preferences and adaptability. If a trader is uninterested in or uncomfortable with a particular strategy, success with it is unlikely due to a lack of focus and commitment. Therefore, choosing a trading strategy that suits one's individual needs is crucial. Whether long-term or short-term, the key lies in finding a trading style that matches one's personality, health, and goals.
In forex trading, long-term investing is generally considered a more stable and sustainable option, particularly in terms of reducing transaction costs, managing market volatility, and protecting one's health. However, short-term trading also has its unique appeal for small traders, despite the higher risks. Ultimately, traders should choose the trading strategy that best suits them based on their personal preferences, health status, and goals.
In forex trading, the specific implementation process of a trend-following investment strategy involves using moving averages to track trends, then gradually building numerous small positions along the moving average. After accumulating returns over several years and achieving a certain level of profitability, these positions are closed and profits are taken, completing the entire investment process.
In forex trading, when using moving averages to track trends, it's acceptable to choose either one or two moving averages, and the parameter settings are also flexible. As long as you prefer and are comfortable with the parameters, they're the most suitable. When using two moving averages, typically with a larger parameter paired with a smaller one, you shouldn't be obsessed with the crossover point. This is obvious because different parameter settings will inevitably result in different crossover points. This also demonstrates that relying solely on crossover points as entry or exit signals is rigid and unscientific.
In forex trading, trend-following strategies have a significant drawback: trends rarely occur. However, this shortcoming can be mitigated by using short-term moving averages. Following the direction of these short-term moving averages, numerous small positions are established. After accumulating a certain amount of profit over several years, these positions are closed to achieve a profit, thus completing the investment process. This strategy's logic resonates with the previously discussed approach to scaling in forex trading and traditional business operations: both employ flexible adjustments based on market conditions to achieve long-term profit accumulation.
The forex trading process shares many logical similarities with traditional business operations. Using an analogy like an investor investing in a chain of small convenience stores can provide a more intuitive understanding of the underlying principles.
In traditional entrepreneurial business, if an investor's ten small convenience stores consistently fail to generate profits, the wise choice is definitely not to open an eleventh store. Instead, the investor should reduce the size of the ten stores to five, maintaining a healthy financial position by reducing investment and avoiding a capital chain break caused by continued losses.
This practice of reducing stores aligns closely with the operational logic of forex trading. When all ten positions held by a forex investor are losing money, they should not open an eleventh position. Instead, they should reduce the total number of positions to five. This ensures sufficient margin in the account, allowing the remaining five positions to remain stable and preserving the possibility of subsequent adjustments or reversals.
Conversely, in a traditional entrepreneurial scenario, if all ten small convenience stores operated by an investor are consistently profitable, the investor can consider opening an eleventh store. If the eleventh store remains profitable, the investor can even expand to a twelfth. This strategy of expanding operations based on profitability is a common business strategy.
Conversely, in forex trading, when all ten established positions are profitable, an investor can consider opening an eleventh position; if profitability persists, they can continue to add to their twelfth. This embodies the forex trading strategy of "opening and increasing positions during periods of floating profits, accumulating numerous smaller positions." When floating losses occur, promptly closing out excessive positions ensures the healthy operation of other long-term positions, preserving sufficient competitive positions for the continuation of long-term trends over the next few years. This aligns with the traditional business logic of adjusting scale based on operating conditions to achieve sustainable development.
In forex trading, if an investor finds the trading process boring, it usually means they have largely reached market awareness.
When a forex trader is in a state of daily excitement, frequently entering and exiting trades, and after each trade, he or she is either busy reflecting on the results or devoting themselves to learning new knowledge, common sense, experience, skills, and psychological theories, eagerly anticipating Monday's arrival, eager to find new opportunities when the forex market opens, and even unwilling to leave the trading chart for a second when the market opens, all of this indicates that the investor has not yet truly grasped the operating principles of the forex market and is still in the transition from novice to experienced. Investors at this stage often believe that high-frequency trading offers more opportunities and that mastering more technical analysis methods will lead to success.
When a forex trader finds forex trading boring, it indicates that they have fully grasped the nature of the market. At this point, the need to acquire new knowledge, common sense, experience, skills, and psychological theories no longer exists, and high-frequency trading will cease, as genuine trading opportunities are few and far between. In this state of "nothing to learn, nothing to trade," the only thing investors can do is wait for opportunities, a process that is often extremely boring. Therefore, forex traders will find it difficult to navigate this period of waiting without cultivating a hobby or interest in other areas.
Forex traders can vent their anger in other ways, but they should never use trading as a channel, even though they may sometimes make this mistake unknowingly.
In traditional real-life situations, anger is often a common way to express conflict and disputes. However, this approach is often difficult to resonate with the recipient. Even if the content expressed is correct, overly aggressive expression can cause the recipient to strongly resent the speaker's attitude and overlook the intended message, resulting in poor communication. Conversely, a rational and calm approach is often more effective in resolving issues. In this case, the recipient will focus more on the content of the message than the speaker's attitude.
In forex trading, when faced with significant losses, traders often lose their composure and engage in retaliatory trading. This behavior effectively damages their original capital. Capital size is one of the most critical factors in forex trading. Once the initial capital is depleted, traders will be unable to continue trading. Besides capital size, emotional management is also a crucial factor in forex trading. Losing control of emotions not only leads to the depletion of capital, but also causes traders to lose control of their emotions, the second most important factor, ultimately leading to the depletion of capital—the most important factor in trading. This is the entire process of how emotional loss leads to capital depletion.
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