DislikedSorry to crash the party but what's the point in hedging anyway? You're just doubling the spread and cost. Guys who really flip their positions just increase their size when they are trying to catch smaller or longer trends.Ignored
There are two types of traders. Before I describe them, just keep in mind only 1 out of 10,000 traders do not lose money, but do not make much as well... The rest 9,999 (poor) folks are net losers. Those who can really make money on trading are in between 1 in 100,000 or 1 in 1,000,000. I personally tend towards 1 in 1,000,000. Lets hope I am wrong.
So, the two types of traders are:
1. Those who do know the direction and trade it and get super rich. They do not have to hedge. One trade into the right direction and BAAM! They nail it down! Maybe 9,999 out of 10,000 traders are just like that. That is the bigger club, as you can witness.
2. Those who do not know the direction and therefore they have to hedge. One of the trades will be with the right direction, they flip the other (the loser). probably a couple of times before clear it out. Maybe they make a buck or two? Lets hope they do. These folks are like 1 in 10,000. The smaller club nobody wants to join in.
You can see there is a huge advantage of trading with one trade. The club has 9,999 members....
Maadik Hugiis. IQ 69.
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