DislikedHi guys, I have something in mind about hedging a position versus setting a stop loss for it. Say for example I open a long position for GBPUSD and it goes against me. Now, instead of setting a stop loss and having the trade hit that SL, I open a short position when it reaches the price point where I would have set a SL. The net loss will always be equal to that and when I open other trades and cover that net loss I'll simply close the position and be done with it. Psychologically speaking, I think hedging the position is a better thing to do. What...Ignored
hedging or stop losses do not affect your equity.
some people use hedge techniques, but in my opinion it is not as effective as you will be charged spread