Funny, I was deleting old FF bookmarks and saw this post I made (never got any response from the thread starter..lol) apparently he just wanted to state his opinion.
here is the post http://forexfactory.com/showthread.php?t=59721 I think this was back on the 12th of Dec.
In this larger example, if you didn't hedge you missed out on a few trades (if you got in at penetration). There were a number of trades (long and short) while waiting for this trade to reach it's target.
My hedge definition : a trade executed opposite to a preexisting open position with specific targets. (not to "save" your previous position or appease your anxiety.)
You should only hedge when a trade develops in the opposite direction. Seriously, you can have many trades going on at the same time.
When you have a larger range you should enter a very small position and add to it when/if it retraces. Many times I've entered a position and 5 candles later I'm in the opposite direction making pips against my original trade. This way, if you screwed up your fib/targets you can still trade to the positive. If you enter a trade with a 100 + pip target you will likely have at least one nice trade in the opposite direction (if you want it).
I'm not really sure if I know what I'm saying today, I'm still a little foggy.
here is the post http://forexfactory.com/showthread.php?t=59721 I think this was back on the 12th of Dec.
In this larger example, if you didn't hedge you missed out on a few trades (if you got in at penetration). There were a number of trades (long and short) while waiting for this trade to reach it's target.
My hedge definition : a trade executed opposite to a preexisting open position with specific targets. (not to "save" your previous position or appease your anxiety.)
You should only hedge when a trade develops in the opposite direction. Seriously, you can have many trades going on at the same time.
When you have a larger range you should enter a very small position and add to it when/if it retraces. Many times I've entered a position and 5 candles later I'm in the opposite direction making pips against my original trade. This way, if you screwed up your fib/targets you can still trade to the positive. If you enter a trade with a 100 + pip target you will likely have at least one nice trade in the opposite direction (if you want it).
I'm not really sure if I know what I'm saying today, I'm still a little foggy.
Robonacci com