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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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Under the two-way trading mechanism of foreign exchange investment, the more uncertain the economic environment, the more ordinary investors flock to this market in search of opportunities.

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These individuals mostly face the practical dilemma of sluggish income growth from their primary jobs and difficulty in entering traditional entrepreneurial paths. Lacking feasible ways to increase income, they often turn all their expectations for profit, or even a "turnaround," to relying on foreign exchange trading.
However, objectively speaking, given the overall professional level of domestic and international foreign exchange trading service institutions, combined with the inherent two-way trading mechanism, high leverage, and 24/7 volatility of the foreign exchange market, these individual investors who hastily enter the market due to a lack of other options are essentially actively taking on market risk.
On the surface, forex trading offers the flexibility to trade in both long and short positions, with flexible entry and exit points, seemingly providing opportunities for profit at any time. However, for individual traders lacking a systematic trading framework and with weak risk management awareness and capabilities, the actual margin for error is extremely limited. After entering the market, they often face a high risk of principal loss, and may even fall into a passive situation of continuous losses.
Previously, I released a video with the core argument that all reliable certainty ultimately stems from building one's own capabilities. This judgment mainly applies to the real economy and the entrepreneurial environment. Neither businesses nor individuals should wait for external policy stimulus or a natural market recovery; ultimate survival and development can only rely on the accumulation of professional skills and the solidification of a cognitive system.
The practical difficulty of forex trading far exceeds that of daily jobs or starting a business. While it may seem to have a low entry barrier, flexible trading direction, and frequent trading opportunities, it actually places extremely high demands on understanding the macroeconomy, grasping market rhythms, position allocation strategies, and psychological and risk management capabilities. Coupled with the amplifying effect of leverage on profits and losses, any slight deviation in judgment or execution can lead to significant losses or even a margin call. With their current level of understanding and professional skills, ordinary investors lack the ability to consistently participate in such markets, let alone the qualifications to trade with composure.
If someone, simply because of setbacks in finding a job or encountering difficulties in starting a business, views forex trading as a speculative profit-making opportunity or a way to turn their fortunes around, and rashly enters the market with a侥幸 (jiao xing) mentality, the likely outcome is loss of principal and a hasty exit. Such behavior is not rational investment; it's more like a blind adventure without preparation.

In forex trading, traders holding cash and waiting for market opportunities are not relying on deliberate patience to maintain a trading state. Essentially, the current market conditions do not match their trading system's standards and do not meet the entry requirements, thus lacking value from a trading knowledge perspective.

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The fundamental reason why most forex traders need to consciously restrain their impulse to open positions and suppress their desire to hold positions is that their trading aesthetics are not yet mature enough to completely suppress trading greed. The forex market is characterized by two-way volatility, with frequent shifts in market trends. The market is often filled with low-quality market conditions such as choppy fluctuations, false breakouts, and continuations of weakness. If traders haven't developed a sound market understanding and their trading selection threshold is too low, they are easily tempted to blindly open positions when faced with small market fluctuations or short-term market anomalies, triggering unnecessary two-way trading.
Only when traders accurately identify the defects of various low-quality market conditions in the forex market, clearly recognize the trading risks hidden in market conditions such as ambiguous direction, disordered structure, and unbalanced profit-loss ratios, and continuously improve their trading aesthetics and entry selection standards, can their overall trading state undergo a fundamental transformation. At this point, remaining out of the market is no longer about forcibly restraining two-way trading and suppressing the desire to open positions through willpower, but rather because most ordinary and low-quality market fluctuations simply do not meet the entry conditions of one's personal trading system, naturally not generating any trading intention. The core practice of a mature forex trader is to continuously refine and optimize their trading aesthetics, filtering various two-way trading opportunities based on professional market knowledge and a trading system. This involves proactively eliminating low-quality trading opportunities with unclear directions, crude and chaotic candlestick chart structures, insufficient trend continuity, unreasonable risk-reward ratios, and limited risk tolerance. It also means avoiding ineffective two-way trading behaviors such as emotionally driven counter-trend openings, frequent scalping, and profiting from short-term fluctuations. Being out of the market in this state is not a passive adherence to trading rules or discipline, but a natural trading norm resulting from a well-developed trading understanding and mature trading aesthetics.
The advancement of a forex trader is essentially an iterative upgrade of their trading logic: from relying on external trading rules and rigid discipline to constrain their opening positions and two-way trading behavior, to relying on internal trading aesthetics and mature market knowledge to guide trading decisions and form an instinctive trading mindset. There's no need to consciously warn oneself to avoid risk or restrain trading impulses; trading instincts will automatically filter and eliminate all two-way trading opportunities that do not conform to one's personal trading system.
In forex two-way trading, the highest level of trading self-discipline is trading without conscious effort. Abandoning wishful thinking and rejecting all ineffective volatility trading, maintaining a calm, rational, and insightful mindset in the face of a chaotic and ever-changing forex market is a core trading quality that top forex traders must possess.

In two-way forex trading, to achieve long-term stable profits, traders must adhere to a set of fixed trading principles: avoid arbitrarily setting stop-loss orders, avoid blindly over-leveraging during trend extension phases, and focus entirely on medium- to long-term trends and large-scale swing trading.

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Once a position reaches its profit target, decisively and steadily take profits and exit the market; when a position experiences floating losses, patiently adhere to the holding logic and strictly avoid frequent short-term trading.
In the current foreign exchange market, much commentary deliberately promotes short-term trading and high-frequency operations as a means to quickly profit, claiming that high returns can be earned by taking advantage of small market fluctuations. Simultaneously, it frequently guides traders to liquidate positions and cut losses during these minor price swings. In reality, those who use such rhetoric to attract followers and provide trading guidance are themselves incapable of achieving long-term, stable profitability in the foreign exchange market.
The foreign exchange market's two-way trading and T+0 instant trading characteristics seem to offer ample opportunities for both long and short positions, allowing for immediate entry to capture arbitrage opportunities. However, the vast majority of ordinary investors' trading losses stem from frequent short-term trading. Short-term market fluctuations are highly unpredictable and easily influenced by factors such as instantaneous fund flows and sudden news events, resulting in extremely high trading uncertainty. Furthermore, frequent opening and closing of positions continuously incurs transaction costs such as spreads, fees, and slippage. Even if a single short-term trade yields a small profit, the cumulative trading costs over time will inevitably lead to a sustained loss for the entire account.
The core reason why most forex traders suffer losses is not their inability to predict market trends, but rather their lack of strict self-control. They are swayed by short-term fluctuations, frequently engaging in irrational actions like chasing highs and lows, and arbitrarily setting stop-loss orders, gradually depleting their account capital and ultimately leading to significant losses.
For ordinary forex traders, a trading model suited for long-term stable profits does not involve speculating on short-term market fluctuations, but rather adhering to long-term trend analysis and focusing on medium- to long-term swing trading. This involves establishing positions based on long-term technical trends and fundamental logic, abandoning the mindset of high-frequency trading for quick profits, and relying on trend continuation and time to accumulate stable profits. During periods of floating losses, avoid blindly cutting losses and avoid emotional stop-loss orders; at the beginning of a trend, avoid impulsive adding to positions, patiently waiting for high-value, high-certainty entry opportunities, only participating in market movements that one can accurately predict and effectively control, and only exiting with profits once they have materialized and reached expectations.
Countless traders obsessed with short-term speculation eventually exit the market due to continuous losses. Only those who adhere to medium- to long-term, large-swing trading logic, strictly control trading frequency, and maintain a stable trading mindset can establish themselves in the forex market and achieve consistent and stable profits in the long run.

In forex trading, traders are not analysts. To identify trends, a quick glance at recent highs and lows is sufficient.

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Opening any currency pair's candlestick chart, the first step in determining the trend is fixed and applies to all chart types, requiring no further explanation. Forex markets only have two directions—up or down. There's no need to delve into long-term historical price movements; focus on the current, immediate market movement—this is the core of live trading.
If the market is currently rising, first pinpoint the lowest point of this short-term trend. Using this low point as an anchor, analyze the overall structure of the candlestick chart upwards. If the price is currently falling, identify the highest point of this short-term trend. Using this high point as an anchor, analyze the overall structure of the candlestick chart downwards. In live trading, simply define the high and low points of this short-term trend and mark the current trading range; this provides a basis for short-term decisions.
It's crucial to distinguish between traders and analysts here. Analysts review long-term historical data, digging deep across timeframes and dimensions, covering a wide range of topics. However, live forex trading relies on immediacy and simplicity—if the direction is correct, both long and short positions can be taken; there's no need to delve into historical data. Excessive backtesting can interfere with current judgment.

In the context of forex two-way trading, price pullbacks are essentially a healthy market phenomenon. For professional forex traders, this is often seen as positive, a perception drastically different from that of ordinary retail investors.

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Most amateur investors are easily swayed by market sentiment when trading forex: they become blindly optimistic when the market moves upward, and immediately fall into panic and pessimism when the market retraces. However, professional forex traders not only don't fear retracements, but actually look forward to normal market corrections.
The core advantage of forex two-way trading is that it allows profits from both rising and falling markets, but without retracements, quality entry opportunities are lost. If the market continues to move in one direction, whether upward or downward, the trend may seem clear, but it is actually extremely unfriendly to traders who are not holding positions, have missed opportunities, or are preparing to add to their positions. In such extreme one-sided market conditions, the risk of passively chasing orders is extremely high, and traders are easily trapped at temporary highs or lows, resulting in a loss upon entry.
Conversely, when the market experiences a sufficient and reasonable retracement, it provides a stable second entry opportunity. When a market move that was initially missed retraces and establishes a reasonable price range, traders can then calmly place long or short orders without being forced to aggressively chase the market. If the market never retraces and moves rapidly in one direction, capital can easily be completely lost, missing out on the entire trend – this is one of the most frustrating situations in forex trading.
Therefore, in two-way forex trading, market retracements are never a risk signal, but rather an excellent opportunity to reset trading rhythm and reposition entry points. Traders should not be overly pessimistic about them.

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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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