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All the problems in forex short-term trading,
Have answers here!
All the troubles in forex long-term investment,
Have echoes here!
All the psychological doubts in forex investment,
Have empathy here!

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In two-way foreign exchange trading, most traders will encounter the problem of high-frequency losses: when the market continues to fall unilaterally, they take advantage of the trend to buy the bottom and go long. After entering the market, the market continues to decline, and long orders are trapped; when the market continues to rise unilaterally, they subjectively predict that the top will be reached and go short to touch the top. The subsequent market continues to rise, and short orders are also deeply trapped.

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First of all, we need to clarify the core understanding: in two-way foreign exchange trading, there is nothing right or wrong in buying the bottom or picking the top. The market generally prohibits buying bottoms and tops, which does not fit in with the real trading rules of foreign exchange. Foreign exchange trading supports the opening of long and short positions at any time. Going against the trend to buy the bottom and reverse the top are legal and conventional trading ideas, and are not taboos in trading.
The core of the real mistakes made by traders is never the trading action of hunting for bottoms and tops, but the lack of fixed and objective standards for market judgment, and the entire process relies on subjective feelings to predict the turning point of the market. Most people only use the rise and fall of the market as the basis for trading: if the market continues to fall, they subjectively judge that the decline is in place and the market is about to reverse, and they blindly open long positions to buy the bottom; if the market continues to rise, they subjectively believe that the increase has peaked and is likely to fall back, and they rashly open short positions to find the top, just to obtain a high-quality opening price. This purely intuitive trading model is the fundamental reason for frequent traps and continuous losses.
There are no absolute extremes of ups and downs in the foreign exchange market, and the continuation of unilateral trends often far exceeds traders' subjective predictions. The falling market can continue to overturn the decline and make up for the decline, and the rising market can continue to rise and break new highs. A reversal and callback will not necessarily occur just because the increase or decrease is sufficient. Relying on the inherent thinking of "if the price falls more, it will rise, and if it rises more, it will fall" to carry out two-way trading, the essence is to bet on the market based on feeling, and losses are inevitable.
The core logic of compliant and profitable two-way counter-trend trading is very clear: wait for the original unilateral trend momentum to be exhausted and enter the decay stage, confirm that the long and short forces have completely reversed, and the new reverse trend is about to start, and then execute the bottom-hunting operation.
The market energy consumption and exhaustion stage refers to the gradual disappearance of the momentum of the original up and down trend, the unilateral operation rhythm of the market slowing down, and a complete bid farewell to the previous strong trend. The long and short forces gradually transition from a state of extreme imbalance to a balanced state of mutual competition.
A key trading misunderstanding needs to be clarified here: the exhaustion of trend momentum does not mean that the market will reverse immediately. The exhaustion of the kinetic energy of the old trend only means that the original unilateral trend has stopped continuing, and the subsequent market is likely to fluctuate sideways, or it may resume the original trend after accumulating strength. Therefore, opening a position in advance against the trend just because the market is weak is the core incentive for traders to frequently overturn when buying bottoms and tops.
To carry out two-way counter-trend trading in foreign exchange, there is no need to abandon the trading technique of hunting for bottoms and tops. The core is to establish standardized basis for market judgment and completely abandon subjective assumptions. Relying on clear market signals and mature trading strategies, we can accurately identify the turning point of the market and confirm that the new reverse trend has started, and then carry out bottom-hunting and top-hunting operations. Two-way trading against the trend is a controllable profit opportunity. Buying the bottom and picking the top without any objective basis for judgment and only predicting the turning point based on physical sense is blind trading, and losses are inevitable.

Under the two-way trading mechanism of foreign exchange investment, traders need to correctly examine their own order-taking process. The so-called carrying orders is not a generalization, but depends on the degree of matching between direction judgment and position management.

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When traders determine the direction of the market, the market will often not run in a straight line, but will undergo a normal technical retracement. At this time, the account will have a floating loss, and this loss is part of a healthy retracement. Faced with this situation, traders need to bear these floating losses, provided that the position must be light enough and the capital allocation is reasonable. Only under such conditions, carrying orders is a rational position holding strategy. It is an insistence on direction judgment rather than blind obsession.
However, the vast majority of foreign exchange traders fall into the trap of vicious retracement after looking at each other. They try to hold on to floating losses that far exceed the normal range. This kind of holding of orders is inherently stupid because it violates the basic principles of risk control - adding positions against the trend, holding on to losses without stopping, and eventually leading to liquidation.
There are also some traders who are also looking in the right direction, but because their positions are too heavy, even if the direction is correct, they cannot withstand the impact of short-term fluctuations. For this kind of situation, the correct approach is not not to take the order, but to take the order wisely. Specifically, it is to avoid using leverage and compress the position to a light enough level so that even if a large reverse fluctuation occurs, it will not trigger forced liquidation or psychological collapse.
All in all, in two-way foreign exchange trading, carrying the order itself is not a problem. The key lies in what type of retracement it is, whether the position is reasonable, and whether leverage is used. Only on the premise of light position and no leverage is the correct trading behavior to hold on to benign retracement; on the contrary, any form of vicious holding of orders is a violation of trading discipline.

In the two-way foreign exchange trading mode, all traders know that the core focus of improving intraday trading ability is to cultivate their own trading endurance.

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The foreign exchange market supports long-short two-way trading. The market prices alternately rise and fall, and fluctuate repeatedly. Opportunities for long and short positions may appear at any time during the market. On the surface, market conditions are everywhere and profit opportunities can be seen everywhere. However, traders must be clear that no matter how many opportunities there are in the market, most of them are not covered by their own trading system. Every round of ups and downs on the market is the result of the long-short game of market funds. The long-short trend switches frequently, which is a great temptation for traders to enter the market.
Traders need to recognize the objective reality of trading. Everyone has boundaries in their trading cognition and market control abilities. Facing the rapid and disorderly two-way fluctuations in the foreign exchange market, individuals' trading capabilities are very limited. Many floating profits generated by long-short switching are themselves earnings that ordinary traders cannot grasp stably. If you forcefully enter the market and operate outside your own trading system, you will eventually fall into the trading misunderstanding of opening positions based on luck and impulse.
Whether there are seemingly high-quality long opportunities or short selling opportunities during the day, do not rush to pursue orders immediately. Traders can force themselves to pause for 3 to 5 seconds. If the market trend is unclear and the direction is uncertain, they can wait an additional minute or two to calm down and clarify the logic of the market before deciding whether to enter the market or whether to wait and see.
Adhering to this trading habit of waiting for review for a long time can steadily stabilize the intraday trading mentality and effectively restrain the high-frequency impulse of chasing longs and shorts. Patience in two-way foreign exchange trading does not mean passively holding positions and carrying orders, nor does it mean waiting and watching without daring to operate, but active restraint and rational choices based on the trading system and following the trading rhythm.
Through short intraday waiting, it can effectively filter out the chaotic false fluctuations and invalid long and short opportunities on the market, and minimize the invalid orders and wrong orders caused by impulsive opening of positions and frequent two-way brushing of orders. The key to achieving stable profits in foreign exchange trading is never to exhaust all long and short market conditions and seize every fluctuating profit, but to stick to your own trading system and only participate in deterministic market conditions that you understand, control, and hold.

In the two-way foreign exchange trading mode, whether traders hold a single currency pair or configure multiple trading varieties at the same time, when the account accumulates a certain size of floating profits, it is basically difficult for the market to maintain a long-term one-way upward or one-way downward trend.

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As long as there are reverse shocks and periodic corrections in the market, the original floating profit of the account will gradually retreat and continue to shrink. This is a normal market situation that frequently occurs in two-way real foreign exchange trading, and it is also a trading scenario that all traders will encounter.
Faced with the situation where floating profits continue to be taken away and account profits continue to decrease, the vast majority of foreign exchange traders will have an anxious and entangled trading mentality. Most traders cannot accept the loss of profits. In order to lock in profits and avoid the risk of retracement, they will choose to manually close positions in advance. In the end, they can only capture a small segment of the market and reap limited meager profits. Only a few traders can maintain a stable mentality, firmly wait and see, and wait patiently for the market to complete the complete trend.
In real foreign exchange trading, it is a very common phenomenon to retract 50% to 70% of the floating profit of a position, and it is also a two-way trading norm that most long-term traders have already adapted to and accepted. There is no absolute unilateral market trend in the foreign exchange market itself. The alternation of ups and downs and repeated switching of long and short forces are the core essence of the market. The foreign exchange market, which operates on a two-way trading mechanism, does not have a market trend that only rises but does not fall, or only falls but does not rise. Naturally, the floating profit of the account cannot expand indefinitely and continue to increase.
In two-way foreign exchange trading, if you want to fully capture the swing market and take advantage of most of the profits from the trend market, you must adopt reasonable profit-taking. Profit retracement is not a trading error, but a normal market cost that needs to be borne during the process of swing positions and trend positions. If traders are always afraid of the loss of floating profits and hastily close their positions and leave the market once there is a small retracement, it will be difficult to obtain stable and considerable long-term trading profits in the two-way volatile foreign exchange market.

In two-way foreign exchange trading, the most stupid mentality is self-righteousness. You always feel that you understand the market trends that others cannot understand and the so-called truth of the market.

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Trading should never be about buying at the lowest point and selling at the highest point. Foreign exchange is a two-way fluctuating market. Ups and downs are normal, and there is no static trend.
Many traders' account capital curves have never been able to get out of the curve, and their volume has been unable to grow. The key is that they cannot withstand the retracement of floating profits. Please recognize the fact that the floating profit that has not been closed and pocketed never belongs to you.
A retracement of floating profits in a position is the most normal thing in two-way trading. If you can't accept even a little retracement and are eager to stop profits when you make a little profit, you won't be able to grasp the band at all, let alone a large-level unilateral market.
Most traders who lose money and fail to make big money are trapped in self-perception and are blindly conceited. They always think that their judgment is superior to the market, and they are eventually slapped in the face by the market.

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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

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