I fully agree with SHAM.
HEDGING is definately out of the question.
Most beginners would think that this is their answer to their problems. But alas, sad to say, this may only be the beginning to the long and windy road downhill.
Learn to take your losses. Taking losses can be good.
Some of you may have experienced this in Hedging.
First, you start with a well intentioned trade. Then it starts to go wrong and you take positions on the other side. Now you think, wow, this platform is great. Not only will I protect my original position, I can even make some money along the way with no extra margins required.
Now... two scenarios can happen pending on the difference in prices of the positions taken. If the difference is small, then it is "ok" . But if the diffrence is 200 or more pips... then.....
Lets say... it is the larger of the two. After taking your positions, prices move against your new position. YOU ARE STUCK. You stress yourself up and keep wondering which way the market will move. Your mind is on the market all the time and you cannot concentrate on what you are doing. You have also tied up your capital. Which will not allow you to take a potentially profitable trade. Opportunity Cost.
Ok.. now lets say... one of the two positions is in profits of lets say 50 pips and signals are showing a reversal. You decide to take profits on this position and now HOPE that it will go back to your original position. A guru once said, in FX, do not smoke "HOP-ium". Prices now move a little and you are elated.
Now comes the bad news and the market turns for the worse. your FL is now more then 300 pips. What do you do ? Hedge again ? Or do you cut loss now.
This can be a never ending story. But it can come to a time when you decide to take your losses or more then 500 pips. And now you will be the happiest man on earth. WHY ? Cos, you dont have to worry about your positions anymore. You feel light and you go out to celebrate your losses. As the stress is now over. There is no more nursing a sick position.
But the morale of the story is, since you are so happy taking such a huge loss, why did you not take a small 30-50 pip loss in the very beginning ? You could have made it back in other opportunites as the above position can drag on for days and weeks.
Take Shams advise... he must have had the bitter pill himself.. and so have many experienced traders. Yours truly included.
MAY THE PIPS BE WITH YOU ALWAYS!
GOT U BRO...
hi cappalz,
may i know how you hedge?
regards
jest!
it really @#$% game man... dun do it.. if u play SL system u have to make sure atleast 60% winning 40% lose n in the end u will close atleast 10% or more every month... just roughly....
but then if u like headging system u will win every single trade... OR u will totally lose... almost of the time u will totally lose...
i cant give more to u... i been declare lose everything in forex on first place im started this micro acct... i just go system by system to prepair my next mini n standard acct...
for ur info this my 4th headging testing... n 3 time i control everyting on positive result (b4 i get strong advices personally from sham)...
anyway take ur time to find where ur advantages to cover ur weakness( advice from ur NEWB http://www.forexfactory.com/images/icons/icon10.gif )
edit : after i write everything... i see u have post 1k over page... erkk I talk to wrong person... maybe u one of the master of headging system
) by tonite it will be RM2.70 per liter..hehe...
..haha.. but with oil prices now maybe there's no other way.. so guys lets make more pips to fill ur tanks..
agreed with u... actually my headged on same pair... 
Chicken!!!
