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Hedging/averaging trades without prediction

  • #2,781
  • Apr 8, 2024 2:28am Apr 8, 2024 2:28am
Quoting Kodzhamanov
{quote} Thanks for your reply. Basically, I can leave these two orders open orders even if the price goes to 1.09 or 1.10 of course it will start to hurt if this happens and kind of prevent me open new orders because of the less margin available. Also, I don't think is reasonable because even if I close the two now and write off the losses, in the next weeks and months the recover is possible. If I leave them forever the option for completely blowing my account is also on the table Maybe I will hedge again the orders only to be sure this...
You can try using the profit gained on the good side to close a proportion of the bad side. Keep rinsing it until you've cleared the negative, whilst always keeping a profit margin.
  • #2,782
  • Apr 8, 2024 2:33am Apr 8, 2024 2:33am
Quoting Fagin
{quote} You can try using the profit gained on the good side to close a proportion of the bad side. Keep rinsing it until you've cleared the negative, whilst always keeping a profit margin.
Yes, I will try to manage it this way. If the price goes more in the direction of the already-opened trades I can open new trades in the same direction so I can cut the gap quicker.
Dreams don't work unless you do
RealDeal All Time Return: -73.9%
  • #2,783
  • Apr 8, 2024 4:15am Apr 8, 2024 4:15am
Quoting T721
{quote} Just paper trade it going forward before jumping in live. There are literally 100s of ways to trade the dividend. practice for 3mnths first to understand what i mean pal
Cheers, will do
  • #2,784
  • Apr 9, 2024 10:41am Apr 9, 2024 10:41am
Quoting T721
{quote} Perfect for spread bet
FTSE Dividend tomorrow, and its a good one
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  • #2,785
  • Apr 9, 2024 12:04pm Apr 9, 2024 12:04pm
Quoting T721
{quote} FTSE Dividend tomorrow, and its a good one {image}
One question T…instead of buying just before the dividend adjustment (4:29), cant you just buy after the drop and hold until the gap is filled? Or am i missing something ?
  • #2,786
  • Edited 12:23pm Apr 9, 2024 12:13pm | Edited 12:23pm
Quoting jimsxxl
{quote} One question T…instead of buying just before the dividend adjustment (4:29), cant you just buy after the drop and hold until the gap is filled? Or am i missing something ?
Yes you can but you wont be paid the dividend. There are literally hundreds of ways to trade the divivend but you should just practice for a few months with small amounts.

Also as an example --- lets say you are short the ftse and lets say you went short at £2 and you are up 30points -- so your profit is £60
Now it drops 10points for the dividend ... now you are plus £80 on your trade but you will lose £20 as the dividend is 10points, hope it makes sense --- the £20 is taken from your account
  • #2,787
  • Apr 9, 2024 12:17pm Apr 9, 2024 12:17pm
Quoting T721
{quote} Yes you can but you wont be paid the dividend. There are literally hundreds of ways to trade the divivend but you should just practice for a few months with small amounts. Also as an example --- lets say you are short the ftse and lets say you went short at £2 and you are up 30points -- so your profit is £60 Now it drops 10points for the dividend ... now you are plus £80 on your trade but you will lose £20 as the dividend is 10points, hope it makes sense

So lets say you dont have a position on and you buy @4.29 nad 50secs @£2 per point your trade will now be minus £20 but you get the £20 paid into your account. Then what i do is start to add if it drops more. And by doing this you dont even need to hold your original position to fill the gap because you will be in good profit
  • #2,788
  • Apr 9, 2024 12:35pm Apr 9, 2024 12:35pm
Quoting T721
{quote} So lets say you dont have a position on and you buy @4.29 nad 50secs @£2 per point your trade will now be minus £20 but you get the £20 paid into your account. Then what i do is start to add if it drops more. And by doing this you dont even need to hold your original position to fill the gap because you will be in good profit
That is what im not getting, if i buy for £2 @4:29:50, it drops 10points, im now minus £20, but im getting £20 back after a few seconds… what is the advantage of that first trade? Im thinking, if you just ”buying the dip”, whats the difference?
Sorry, maybe im not getting it
Btw, 4:29… im assuming thats UK time
ive never traded indexes and stuff, so here comes a newbie question, dont kill me
UK100 same as FTSE?
  • #2,789
  • Apr 9, 2024 12:36pm Apr 9, 2024 12:36pm
Quoting jimsxxl
{quote} That is what im not getting, if i buy for £2 @4:29:50, it drops 10points, im now minus £20, but im getting £20 back after a few seconds… what is the advantage of that first trade? Im thinking, if you just ”buying the dip”, whats the difference? Sorry, maybe im not getting it Btw, 4:29… im assuming thats UK time ive never traded indexes and stuff, so here comes a newbie question, dont kill me UK100 same as FTSE?
UK100 is FTSE
  • #2,790
  • Apr 9, 2024 12:38pm Apr 9, 2024 12:38pm
Quoting jimsxxl
{quote} That is what im not getting, if i buy for £2 @4:29:50, it drops 10points, im now minus £20, but im getting £20 back after a few seconds… what is the advantage of that first trade? Im thinking, if you just ”buying the dip”, whats the difference? Sorry, maybe im not getting it Btw, 4:29… im assuming thats UK time ive never traded indexes and stuff, so here comes a newbie question, dont kill me UK100 same as FTSE?
No difference you can buy after it drops, there are thousands of ways to do it just take your time studying it every week before jumping in Ballsdeep, just take it easy but once you get your own way to trade it you wont need to trade anything else. The win rate is massive, trade it with 50cents or a dollar for a month or two
  • #2,791
  • Apr 9, 2024 12:42pm Apr 9, 2024 12:42pm
Quoting T721
{quote} No difference you can buy after it drops, there are thousands of ways to do it just take your time studying it every week before jumping in Ballsdeep, just take it easy but once you get your own way to trade it you wont need to trade anything else. The win rate is massive, trade it with 50cents or a dollar for a month or two
Thanks alot mate, i will definitely study it
  • #2,792
  • Apr 9, 2024 12:55pm Apr 9, 2024 12:55pm
Quoting jimsxxl
{quote} Thanks alot mate, i will definitely study it
  • #2,793
  • Apr 10, 2024 8:35am Apr 10, 2024 8:35am
Just left the cinema, checked the phone and all last week’s money now returned and some, missed the dividend trade today though, anyone have any joy with that?
Sounds like a lot of screen time to me.
  • #2,794
  • Apr 10, 2024 9:01am Apr 10, 2024 9:01am
Quoting LazyTrades
Just left the cinema, checked the phone and all last week’s money now returned and some, missed the dividend trade today though, anyone have any joy with that?
Missed it? Isnt it in 1.30h ?
  • #2,795
  • Apr 10, 2024 9:06am Apr 10, 2024 9:06am
Quoting jimsxxl
{quote} Missed it? Isnt it in 1.30h ?
Ah my bad, yes 4.30 UK, might be back for it.
Sounds like a lot of screen time to me.
  • #2,796
  • Apr 10, 2024 10:36am Apr 10, 2024 10:36am
Quoting LazyTrades
{quote} Ah my bad, yes 4.30 UK, might be back for it.
There was no drop on my feed (FTMO). Anybody saw a drop?
1.02^200
  • #2,797
  • Apr 10, 2024 10:50am Apr 10, 2024 10:50am
Quoting d5400
{quote} There was no drop on my feed (FTMO). Anybody saw a drop?
Yes saw drop, but Terry where does the dividend show up .....
  • #2,798
  • Apr 10, 2024 10:59am Apr 10, 2024 10:59am
Quoting Waveskierrob
{quote} Yes saw drop, but Terry where does the dividend show up .....
I was expecting a gap actually, so I did see a drop I guess. When price started moving down, I started buying. Took profit a few minutes later.
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1.02^200
  • #2,799
  • Edited 11:23am Apr 10, 2024 11:09am | Edited 11:23am
Nothing my end on the min1 (Oanda). Have it in the diary so will check again next month, this would be a good exercise for new/impatient traders
Sounds like a lot of screen time to me.
  • #2,800
  • Apr 10, 2024 11:53am Apr 10, 2024 11:53am
Quoting Waveskierrob
{quote} Yes saw drop, but Terry where does the dividend show up .....
shoulda showed up by now in your balance
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