Urgent Help! Hedging Crisis,any solutions? | Forex Factory

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Urgent Help! Hedging Crisis,any solutions?

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  • How do u think my positions will end?
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  • #1
  • First Post: Edited May 12, 2008 10:40am May 7, 2008 9:51pm | Edited May 12, 2008 10:40am
Hello all.....I must inform that, this positions is no longer a hedging positions..and now it is on the way to recovery state.....we'll c.. please vote, view recomendations or share your analysis...

All response would be appreciated...thank you.
========================================================

Hello, all pls check my latest screenshoot...
It's escaping the Losses!!!

========================================================
Hello all, (i'm not sure if this the right part forum to place this post,sorry)
Ok, here's the situation

I have open two open buy position on EU :

0.4 mini lot @1.5501
0.8 mini lot @1.5507

and i left it float until now, then i open sell against it :

1.2 mini lot @1.5309

So, i lock my position now....

Here's my account balance :

Used margin : $24
Margin left : $3.71
Profit/Loss : (-$23.5)

What should i do??....can my position be saved?

Thank you!!
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update : http://www.forexfactory.com/showpost...75&postcount=9
(May,11,2008 :: EUR/USD @ 1.5482 )

0.4 mini lot @1.5501
0.8 mini lot @1.5507

1.2 mini lot @1.5309 (closed)

Used margin : $12 (prev $24)
Margin left : $30 (prev $3.71)
Profit/Loss : (-$5) (prev (-$23))
=========================
Attached Image(s) (click to enlarge)
Click to Enlarge Name: chart11052008_with-marketiv.gif Size: 86 KB
Click to Enlarge Name: 12052008.gif Size: 77 KB
  • #2
  • May 7, 2008 9:57pm May 7, 2008 9:57pm
is it ok...if i let this position open both?...
  • #3
  • May 9, 2008 5:14am May 9, 2008 5:14am
No point in hedging see link below:

http://www.forexfactory.com/showthre...62#post1425762
  • #4
  • May 9, 2008 5:42am May 9, 2008 5:42am
Quoting lexraptor
is it ok...if i let this position open both?...
Eventually the negative roll will wear down your acct.
I wish I could help. The last time I tried this, I lost my acct.
  • #5
  • May 9, 2008 12:55pm May 9, 2008 12:55pm
Because your asking here, I would say there is a 95% chance that if you try to save that position you are going to lose one way or the other. No matter the size, it's like a bandaid. Kill all positions now, take a day or two off the get your mind back into place. Then come back and reanylize the market for your next entry like the losses didn't happen.

I have personally watched accounts sit in hedges for 6-8 months wearing away on the interest side while the trade trade to decide how to make them up. These were standard lot positions on 100k+ accounts.

If hedging was not part of your plan when you entered those trades, hedging should not have become the "stop the burn" solution. If hedging Was part of the plan, read the link in Aad's post and this one http://www.forexfactory.com/showthread.php?t=68598 before making that plan again.

Have a plan before entering the market and stick to it.

As for now, considering those trades lost will save you money.
The basis of a democratic state is liberty. ~ Aristotle
  • #6
  • May 9, 2008 2:09pm May 9, 2008 2:09pm
EUR is trending down, so close your longs and keep the short... that sounds like your best bet or close all positions
  • #7
  • May 10, 2008 8:50pm May 10, 2008 8:50pm
hello everyone!

1st, thank you for all your post here. commenting and give possible solutions to me...

i want to inform that....since the trend is moving up now..so i think i just hold it...and i'll make additional trade to minimize the risk....of course the new open trade should affect my available margin, but....threre's a chance to make it back...

we'll c...
  • #8
  • May 10, 2008 9:08pm May 10, 2008 9:08pm
Quoting lexraptor
i want to inform that....since the trend is moving up now..so i think i just hold it...and i'll make additional trade to minimize the risk....of course the new open trade should affect my available margin, but....threre's a chance to make it back...
Ah, "averaging a loser' - now that is a solution for you.... LOL. You made a bad trade - close it then get some sleep.
In trading, there is no bullshit. You either make money or you don't.
  • #9
  • May 10, 2008 9:08pm May 10, 2008 9:08pm
ok...here's a screenshoot of what my own technical analysis saying :

at H1 TF,as u can see...the stoch is moving up, though it seems that it has divergence signs (the higher low of Stoch)...it cud be :

reverse again...to 1.5400-1.5380
reverse n bounce around 1.5430
Attached Image
  • #10
  • May 10, 2008 9:33pm May 10, 2008 9:33pm
There's this instinct to "just wait till the rebound" ... don't. Even if it works out this once, statistically it's a losing proposition. Some day, maybe today, it will burn you hard. Go with the optimum play, not with your "instinct."

Cut your losses, close em, take the loss. Let your winners keep going, if they're far enough in the black then set their SL to breakeven. Close off your risk and learn from the experience.

Hedging is mostly a waste of time. If you could predict tops and bottoms with a high degree of accuracy then it could be made profitable using multiple timeframes (1 long term trade, multiple short term hedges on retraces)... but then again if you could predict tops and bottoms you wouldn't need to hedge, either. Mostly it's just a scam to suck up spread pips.

In the future focus on managing your risk by limiting your losses, not hedging them with an opposite trade.
  • #11
  • May 10, 2008 10:37pm May 10, 2008 10:37pm
Quoting Rabid
There's this instinct to "just wait till the rebound" ... don't. Even if it works out this once, statistically it's a losing proposition. Some day, maybe today, it will burn you hard. Go with the optimum play, not with your "instinct."

Cut your losses, close em, take the loss. Let your winners keep going, if they're far enough in the black then set their SL to breakeven. Close off your risk and learn from the experience.

Hedging is mostly a waste of time. If you could predict tops and bottoms with a high degree of accuracy then it could be made profitable using multiple timeframes (1 long term trade, multiple short term hedges on retraces)... but then again if you could predict tops and bottoms you wouldn't need to hedge, either. Mostly it's just a scam to suck up spread pips.

In the future focus on managing your risk by limiting your losses, not hedging them with an opposite trade.
Thank your for the warning...I can tell you that..this is all coz...I late to switch my position...I Ignore the signal i set for my system....and the signal was right.

Back then I focused too close on M15 and M5 and leave M30 and H1, now i try to widen my view and i can see better movement of the price now...as u can see at the screenshoot provided from previous post.

I already close the sell position....so the hedge is no longer exist since i get the signal the trend will move up...

Here's summary of my position and account :
(May,11,2008 :: EUR/USD @ 1.5482 )

0.4 mini lot @1.5501
0.8 mini lot @1.5507

Used margin : $12 (prev $24)
Margin left : $30 (prev $3.71)
Profit/Loss : ($5) (prev ($23))

=========================
  • #12
  • May 10, 2008 11:41pm May 10, 2008 11:41pm
It looks like you're trading too big of a position for the size of your account, judging by the near margin call and the P and L figures you posted.

It might seem tempting to add to a losing position, but that's like playing Russian Roulette with 4 or 5 bullets in the cylinder. Adding to a loser will take you out more often than not--especially if you are already near a margin call.

Smaller positions will keep you in the game long enough to hit the occasional homerun
  • #13
  • May 11, 2008 7:58am May 11, 2008 7:58am
Quoting billflet
It looks like you're trading too big of a position for the size of your account, judging by the near margin call and the P and L figures you posted.

It might seem tempting to add to a losing position, but that's like playing Russian Roulette with 4 or 5 bullets in the cylinder. Adding to a loser will take you out more often than not--especially if you are already near a margin call.

Smaller positions will keep you in the game long enough to hit the occasional homerun
yes, at first i was put only 10% of total account. With 1:100 leverage, from my deposit of $40...i risk $4 margin, but as the price againts me and i late to realize it...the margin left decrease from $36 to $10-20....

anyway, i'm up now....prepare to trade again with still two float open....how long you think i cud hold to this, instead of closing it, and find a way to escape it..?

i should close the two open buy, but i know that someone can see more clearly than to say "....close all now and take the losses...."

can u make my losing/holding position into winning position without close the trade?
  • #14
  • May 11, 2008 8:01am May 11, 2008 8:01am
Your issue is yourself, not the trade. You seem to be tied to absolutely being right. This is a character trait that is going to cost you. Learn to take a loss, then someday if you truly work at it you may learn how to take a win.
PS; I just looked at your Poll - LOL - you voted to hold and escape.
In trading, there is no bullshit. You either make money or you don't.
  • #15
  • May 11, 2008 8:06am May 11, 2008 8:06am
Quoting mrgreen
Your issue is yourself, not the trade. You seem to be tied to absolutely being right. This is a character trait that is going to cost you. Learn to take a loss, then someday if you truly work at it you may learn how to take a win.
PS; I just looked at your Poll - LOL - you voted to hold and escape.

yes....i vote 4 it....why dont vote?
  • #16
  • Edited 10:00am May 11, 2008 8:18am | Edited 10:00am
Quoting lexraptor
yes....i vote 4 it....why dont vote?
Cause you don't have the option:

"If I had to ask for advice on my trade why didn't I just close it?"

PS: edited to attach a doc you may find of interest.
Attached File(s)
File Type: doc How to Take a Loss.doc   30 KB | 788 downloads
In trading, there is no bullshit. You either make money or you don't.
  • #17
  • May 11, 2008 12:21pm May 11, 2008 12:21pm
Never hold a losing position. Set a fixed amount and a fixed time limit that losing trades will be culled by. Not all trees can grow into big oaks, some get killed by the cold.
  • #18
  • May 11, 2008 1:02pm May 11, 2008 1:02pm
Quoting mrgreen
Ah, "averaging a loser' - now that is a solution for you.... LOL. You made a bad trade - close it then get some sleep.
Killer....

That's it. Close it, take a breath. Never average a loser!

Tomorrow (next week, next month) the market will still be there, and it has plenty of cash to you...

Detach from the "I must be right" feeling. The market doesn't take any trader personally. It is not insulting you when you loose. The worthless sensation of being wrong came from you. Just close it all and start over again when you feel not distressed...
Many share my views with me. But I don't share them with them...
  • #19
  • May 11, 2008 6:28pm May 11, 2008 6:28pm
hello everyone, thanks for your words and polls.... keep up your vote!

i include screen shoot of Monday opening market..

Forgive me for being undisciplined by not straight forward to close my trade...

ok..most of you vote to close the trade..Isnt anyone that think otherwise?

I now know that to close the lossing trade is part of the STP (Standard Trading Procedure), i also wanna know if any of you, the fellow humble senior tradeer, to share your analysis for EU, eiher technical or fundamental for upcoming days.... What are the pressure for EU and what cud bring it up...etc...

I'm so happy with all of your response, so don't hesitate to keep me informed..
Attached Image (click to enlarge)
Click to Enlarge Name: chart12052008_112am.gif Size: 48 KB
  • #20
  • May 11, 2008 6:37pm May 11, 2008 6:37pm
Vote now, and see in one month, and watch this positions could be more or less secure in one month...

I could totally wrooong......(Jacko said)

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