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DislikedHedging in most cases is because you don't know what markets/you are doing, so why should you stay in the position in the first position? That's the number one rule in risk management.Ignored
Disliked{quote} I like hedging, it takes the pressure off when things go wrong, so you stay cool as the drawdown stops, and you can make money the other way as well. plus there is the thing with math re-entering a trade after stoped out, makes it pretty much a breakeven run, as the gain will likely just pay for the loss generated before.Ignored
Disliked{quote} I like hedging, it takes the pressure off when things go wrong, so you stay cool as the drawdown stops, and you can make money the other way as well. plus there is the thing with math re-entering a trade after stoped out, makes it pretty much a breakeven run, as the gain will likely just pay for the loss generated before. well if you are a trend-trader, then i guess this is different and hedging makes much less sense, but as a range-trader this most certainly is the case. look at this deal map from today (AUDJPY) (i hedge at 0.65%...Ignored
Disliked{quote} agree, just do it buddy ! everyone claims they know better, just do what we know best is better than following what others do best, unless they are proven better.Ignored
Disliked{quote} that's correct, I'm doing this since years in small ranges. provided a live deal map that shows how i utilize it every day. (no theory, real trades) and still, get told that the loss magically disappear. I was actually about to respond with a simple "Yes" haha. but that has no value, so just let it be. I have no interest in proving anything to anyone, this is not a race, i really don't know why everyone always has to be right, trading (especially intraday) is about probabilities, ego just makes you go broke. there is always someone better,...Ignored
if the setup is still valid, you stop out the hedge out at +1 (or whatever, most of the time BE is not the right place to do this), no harm done, and you good to go when the price comes back at no cost, and if it doesn't (meaning me being wrong) then just close it all and move on
Disliked{quote} I never make any statement like this, that would be just plain wrong and VERY stupid too! (math ) I said it STOPS your drawdown, that's not the same plus it delivers a major psychological advantage at first. as you have no more pressure on making a quick (usually wrong) decision. if the setup is still valid, you stop out the hedge out at +1 (or whatever, most of the time BE is not the right place to do this), no harm done, and you good to go when the price comes back at no cost, and if it doesn't (meaning me being wrong) then just...Ignored
Disliked{quote} Ok but do you realize that you just went long price went against you, you got stopped out and then you went long again and it made some profit. you just made this in a more complicated way.Ignored
DislikedHello, I'm struggling with hedging with the same pair, and I'm trying to understand if there's a situation where hedging a losing position against using a SL could be a catch. In theory, you could use a SL and enter an opposite position contextually. But if the new position also turns eventually wrong, didn't have make it better to hold the old losing position instead of closing it?Ignored
Disliked{quote} 1 position could be wrong in 1hr but could turn to be right in 4hr or next day. just look at eu last friday, that's a good example. anyway, we have the right to use our method that we like as long as we are not losing money.Ignored
Dislikedhi guys, i was curious, should you hedge a losing position to get a good idea of market direction/stop losses from mounting? I have heard someone speak of this but wanted to know if this is a great strategy or not.Ignored
DislikedHedging is a very convenient tool, which should be used in rice transactions. Hedging in trading is called capital insurance against situations that may adversely affect the trading deposit. Using this method, a trader uses one financial instrument to cover the losses of another. This method is effective only if one of the trades brings profit. Therefore, to compensate for losses, a deal of the same volume is opened, but directed in the opposite direction. Deals counterbalance each other, and losses stop growing. That is, hedging has a second name...Ignored