Ok guys got a question about hedging.
Both Graeme and vee talked about hedging. Vee mentioned that it is a way to freeze your profits in the market, until then the light bulb about hedging as taught by Graeme did not make much sense to me.
So recently I closed a few positions on the yen, but I am looking to dd more and last week I built up two long positions. One position is currently in profit and the other is in a loss for roughly the same amount. Today was a down day, as a result should I hedge and freeze my profits incase there is further downside.
The trade currently looks like this...
Long 1: +50 pips
Long 2: -55 pips
my feeling is I should do the following.
1. Move s/lot break even on profitable position
2. Add short position, or hedge to counteract long position that is in a loss and to build up a short position should price move low ever
Both Graeme and vee talked about hedging. Vee mentioned that it is a way to freeze your profits in the market, until then the light bulb about hedging as taught by Graeme did not make much sense to me.
So recently I closed a few positions on the yen, but I am looking to dd more and last week I built up two long positions. One position is currently in profit and the other is in a loss for roughly the same amount. Today was a down day, as a result should I hedge and freeze my profits incase there is further downside.
The trade currently looks like this...
Long 1: +50 pips
Long 2: -55 pips
my feeling is I should do the following.
1. Move s/lot break even on profitable position
2. Add short position, or hedge to counteract long position that is in a loss and to build up a short position should price move low ever