Hi 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 do you guys think?
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 do you guys think?