Disliked2. You could in effect do the same by switching your positions from long to short to long if at all you can accurately predict such corrections and resumption of trends instead of relying on "hedge/going flat/locking" (call it whatever catches your fancy).
3. It might not be the case with you, but mostly traders resort to "hedging" because they are averse to actually booking their losses and they prefer "locking" their loss by taking a new (contra) opposite side trade and try to recover the loss. At best, it just delays the inevitable booking...Ignored
"It might not be the case with you, but mostly traders resort to "hedging" because they are averse to actually booking their losses and they prefer "locking" their loss by taking a new (contra) opposite side trade and try to recover the loss. At best, it just delays the inevitable booking of loss or wiping out of the account."
Soooooo TRUE .................