Money Management - Losing Position

Hello,

I have not seen too much on this, though I have read some articles, that even with good MM you can get your self out of the losing position and into profit. I am thinking of position average, hedging with support and resistance... you are bound to eventually catch a trend?

Hedging is to be used as your SL reduce your loss/DD, if you are x amount of pips from your MM SL and now use position average to get yourself out of a losing position into a winning position with support and resistance.

Anyone think it's worth a discussion?

Thanks,
Vip

Nothing in a traders bag of tricks guarantees anything.... you can do far worse damage to the account trying to manage a loser...

and if you hedge, prepare to pay extra spreads and a net negative swap....

There's no holy grail, including hedging. It'll work here and there, until it doesn't, then you'll have an even bigger problem on your hands. Price'll move one direction, you'll hedge, then it'll stop and move the other... leaving you in 2 unprofitable trades.

IMO it's smarter to make sure your losses are so small it doesn't matter.

What do you plan to do when x happens? What are you going to do when y happens? The "usual" answer to these questions is simple: if the trade is not going in your direction, get out. Get out fast.
You can make a plan for adding to your position, hedging, or a million other strategies. If they're part of your plan, and this kind of plan has been proven (let me correct myself - demonstrated) to work in the past, then why not? Go for it!
But plan ahead. Don't start thinking about these things while in a [losing] trade.
Good luck!

You are correct, there are allot of systems that work great if the market is in they're favor.
But once the market is going in the wrong direction they blow up all of the accounts.

only one thing : whathever strategy you choose , be sure to adapt it to diferent market conditions