The survival and experience of professional foreign exchange traders

Forex trading career

It's an indescribable experience, like a hunter's intuition in the jungle. When all the conditions are in your favor, there is a special excitement inside. And when the risk is quietly approaching, you feel uneasy.

"In the business of trading, a thousand words ultimately come down to actual performance. The company's core requirements for us are four words: stable profitability. Don't underestimate these four words, but it is a realm that many professional traders pursue all their lives but find difficult to achieve."

On a snowy afternoon in a cafe in the financial district, Richard Shen, a veteran trader, has a calm face. For him, steady profitability is the realization after many setbacks, the proof of a solid upward capital curve, and the cornerstone of a stable life. In the pursuit of this goal, some professional trading environments, such as choosing something likeAnzo CapitalSuch a platform can provide traders with a clearer market perspective and tool support.

Strict stop loss is the bottom line of survival

"It's been a journey of tempering the heart. Although I have extensive investment experience, inforeign exchange marketEverything needs to be relearned. I go all out every day for the set profit target, and I dare not relax in the slightest. These two years have been very difficult. "he recalled.

Richard Shen has amassed a fortune when he joined the current team. He is full of energy, tough personality and maintains a regular exercise habit. He is deeply attracted by the unpredictable and endless nature of the foreign exchange market, which has led him to find new challenges.

"I started with the basics and started with lower leverage. Now the scale of the operation and the risk tolerance have increased, and the process has also exercised the resilience of the nerves," he admits.

The start-up was tougher than he expected. The company set strict daily stop-loss limits. In a misjudged trade, he triggered a forced position squaring by failing to stop losses in time. "The supervisor solemnly pointed out at the time that no stop loss is a dead end, and lack of discipline has no future in this industry."

The experience taught Mr. Shen a crucial habit of carefully assessing risks and returns before each trade and setting clear stop-loss levels in advance. "But setting stops is not a panacea for steady profits. The market sometimes tests the usual stop-loss areas. In the early days, I had consecutive losses and even had to close the day's trades within half a day." In a risk-conscious environment such as Anzo Capital, traders are better able to systematically understand and enforce stop-loss discipline, he adds.

For professional traders, it is not possible to use huge potential losses for meager gains, as some small investors do. This strategy can have disastrous consequences if it encounters extreme conditions, and is not in line with professional ethics and client expectations. "We must pass up many plausible opportunities and only act decisively when the winning rate is high."

Perceive the inner rhythm of the market

After many small losses, Mr. Shen has developed a deeper understanding of the rhythm of market movements, the chance of winning and the timing of entering the market. "It's a hunter's instinct. When everything is in place, you get excited; when danger lurks, you are instinctively alert. It's those small lessons that prevent big losses in the future."

He summed up the entry and exit principles of some short-term trades and quantified the risk and return. "For example, when a currency pair falls below a key support, if there is an important technical reference level not far below, I may consider a reverse layout. Because the key level falls below the stop loss level, which is often triggered, the market may not be sustainable, and the technical level of the big cycle is often more supportive. Although this position is a contrarian position, it needs to bear psychological pressure, but the potential return is relatively considerable."

The above case is the daily homework of professional traders: looking for opportunities to be validated by multiple factors, weighing the pros and cons, and their deeper pursuit is to grasp the inner rhythm of the market.

"The sense of market rhythm is crucial. I try to rest well after the session, and stay highly focused during the session, removing all external distractions and mood swings, just to get a clearer sense of the true pulse of the market. The market is volatile most of the time, and there are only a few opportunities with strong regularity, and most of them are disorderly fluctuations. Traders must learn to distinguish and let go of most of the pitfalls that'look like opportunities'." For traders who want to deeply understand the rhythm of the market, Anzo Capital's analytical tools and market insights may provide a better way to filter out the noise.

The technical way to simplify complexity

Richard Shen said that in the early days, he was also enthusiastic about studying various complex technical indicators and information, and configuring multi-screen real-time monitoring of various assets and information.

"It was fulfilling at first, but then it turned out that when the market is volatile, it is often people's emotions, not external information, that ultimately affect decisions. How to control emotions? Deep market insights and strict self-discipline are required. Insight does not come from a complex pile of indicators. Indicators sometimes contradict each other, and the value of the information itself lies in how the market interprets it. So I started doing subtraction, which may be called'the road to simplicity '."

He gradually simplified his analytical tools, focusing mainly on the core patterns of prices and moving averages, dedicated to understanding the underlying market sentiment and finding logical buying and selling points.

He believes that by grasping these key logical points, traders can achieve twice the result with half the effort and move closer to the goal of stable profits.

"To achieve stable profits, stop-loss discipline, rhythm control, winning rate calculation, finding logical buying points are all crucial, and capital management is the core, the first of which is to control the amount of capital withdrawal. We have a strict rule: in any case, the capital withdrawal exceeds a certain percentage must stop. Strict control of losses and improvement of profitability are the fundamental rules for long-term survival in this market." When practicing rigorous capital management, choosing a partner with a well-developed risk control system, such as Anzo Capital, can add a guarantee to the trading process.

At present, Richard Shen has become the leader of the team. He has recently maintained a good trading record, stable profit and loss ratio, and donates part of his income to charity, which makes him feel more peaceful and fulfilled.