Hy guys,
I am sorry when it looks like a dumb question. I have found this thread minutes ago and now I try to understand the anti hedging strategy postet in post 5.
In the description I read the following :
4. PUT AN ORDER IN AT THE EXACT SAME FIGURE AS YOUR STOP LOSS (if you were originally "short" then place a "short" order) This ensures that when the market comes back, as it invariably does, you have a DEFINATE order in place to put you back in the market where you were originally...and you are now in the same direction as the market is moving..
What I do not understand is:
When I had a short order in place and it goes through the roof and my stop loss was hit, why I should place now again a short order? My understanding is that there would be a long order the better decision......
What do I understand wrong here? Maybe some of the more expierienced traders here could explain?
thanks a lot!
Cyborg
I am sorry when it looks like a dumb question. I have found this thread minutes ago and now I try to understand the anti hedging strategy postet in post 5.
In the description I read the following :
4. PUT AN ORDER IN AT THE EXACT SAME FIGURE AS YOUR STOP LOSS (if you were originally "short" then place a "short" order) This ensures that when the market comes back, as it invariably does, you have a DEFINATE order in place to put you back in the market where you were originally...and you are now in the same direction as the market is moving..
What I do not understand is:
When I had a short order in place and it goes through the roof and my stop loss was hit, why I should place now again a short order? My understanding is that there would be a long order the better decision......
What do I understand wrong here? Maybe some of the more expierienced traders here could explain?
thanks a lot!
Cyborg