AUD/USD Pls help me get out of this hedging MESS !!!

Hello everyone, a newbie here.

Here's what happened, two days ago, Friday, sitting and watching the AUD/USD hovering around 0.6500, a level which always produced an up move from. And gold prices were rising and so a good time to buy. (what I thought)

Now this is my LIVE account funded just 10 days ago with $10,000.
Even though I've read a lot of books on MM and this forum about the dangers of not using stops and using a hedge, but I was still stupid enough to get myself in this position.

So I bought one standard lot (the biggest trade I have ever placed up to now) for a quick profit of 30 or 40 pips.

Before I know it, the market dropped like a rock (the black Friday massacre)
and my position went so low that I could not close it anymore as I would have lost alot.

After awhile, a staggering 50% of my account was wiped out, after some time I made another stupid move in placing an opposite 1 lot sell position to avoid further losses.

And now I don't know what do or how to get out of this mess, on one hand I'm sure AUD will rise again as gold is rising and the Australian economy is far better then the US, on the other hand what should I do about this hedge position? should I wait for it to be profitable by 40 or 50 pips and then close it and wait for the price to rise again?

I'm very sorry for this long post, I have now REALLY understood the power of stop losses. Please help and guide me on this, as this is all the money I had.

Worried to death

i feel for you - and its a bad timing that you entered the market. Not having stops is all right - if you have a large account, if you are trading with the trend and if you are trading on a longer term - for a 30-40 pip scalp - you have entered the wrong market at the wrong time

My advise - cut your losses short as soon as you get an opportunity because it doesnt seem that the A$ is going up anytime soon. Hedging is a risky game and should be played only by experienced players.

Rest is your good judgement.

Sorry for your dilemma, but the only answer with a guaranteed outcome is to square your position. This pair has been falling since July, so betting on a turnaround at this very instant is nothing more than hope. Holding it may wipe you out--you've already seen what a difference a day makes in this messy environment. You're hedge is just delaying the inevitable and is doing nothing for you. If you're trying to stay even 'til something looks better, just square your trade and take the pressure off. Being out will do the same as holding your hedge; it will preserve your account. With the hedge, you're running the risk of dropping it at a bad time. When under this type of pressure, any decision you make will likely be bad. Get out, take some time off and come back fresh.

Pretend you're not in the trade and look at the chart. Would this be your choice of pair to trade right now? If so, would you really enter a long trade? If either answer is no, you know what you need to do.

As a newbie, it'll be very tough trading standard lots with a 10k account, tempting as it seems.

Hope you make it work out.

Don't be too upset, we've all made mistakes like this and have had to pay for them too. I agree...cut your losses and LEARN. If you've studied money management and still entered a trade KNOWING but didn't put in a stop loss...try to figure out WHY?

First, There is a psychological reason or significance to everything you do. Try to figure out why you sabotaged yourself, and understand it. My recommendation is NOT to re-enter the market live until you have arrived at some understanding of the psychology behind your decision.

Second, start with smaller lots...mini's or mirco's. Yes you won't get rich as fast but you also won't get poor as fast either. Increase you lot size as your account balance increases. Try the 2% formula for each position.

If your stop will be 20 pips, and your account size is now 5,000. 5,000 x 2% = 100. 100 / 20 pips = 5 mini lots for each position. This if you need a larger stop...say 50 pips you can do the same math and arrive at a position size of 2 mini lots. etc.

This keeps you from lossing big! Which would you rather have a 2% loss or a 50% loss. Simple math really.

If you would like to understand more about the psychology behind your decision, I can direct you to someone...No I don't get a commission and No she's not free, but she helped me and I believe she can help anyone. This person specializes on helping traders.

email me for more details: [email protected]

Fatboy,

You've just been given a dose of Nagasaki ! It happens. For christ sakes don't "be scared".
First of all, it won't do you any good if you trade when you're frightened.
Scared money, you know. Also, if you're long and short you have effectively
locked in your loss.

With the exception of roll-over interest, your account can not gain or lose any more
on this trade(s) regardless of how much it moves, even 1,000 pips.
So there's nothing to be scared of now.

Eventually, you'll still have to pick a direction. Up or Down.
The character of the trade has changed. It is no longer a 30 pip trade.
Time to think in terms of percentage moves. Follow me here if you will.

You've just experienced about a 5% move (against you) in the underlying currency.
Unleveraged, it would be bad enough. At even 10:1 however, it's not a comfortable feeling, I know.
You will need to begin devising a plan to pull some 1 to 2 percent moves (60-120 pips)
out of the pair. 4 or 5 trades from now you could be close to even.


Say you went 6 out of 10 and for giggles, let's say one scratch.
Also assume a 60 pip Tp and a 30 pip SL. So how about 6 trades making 60 pips (+360)
and 3 trades letting go 30 each (-90) and the scratch (+0). Factor some slippage too (-20).

(+360)+(-90)+(+0)+(-20) =250 pips profit. Would that fix the boo-boo ?
Maybe not totally but it would go along way toward recouping the loss.

That's just 10 trades. It could take 10 days. maybe 5 days. maybe 3. maybe 7.
Please say you'll have the resolve to form such a plan and the patience to stick to it.

Honestly, I wouldn't want to see you lose 10 grand. I've done stupid shit before and lost $$
and your example is no different that what many of the folks here have done before.
and learned the hard way. THIS IS THE HARD WAY.

Use a stop. We are playing in traffic. 30 pips is plenty for that account size.
Some will say too tight, others will say too much. If I read your style correctly,
you're looking for 30 or 40 pips on some of these trades anyway, so why not use a 1:1 max R/R.
On those trades, either you're right or you're wrong and it's an even money bet.

Don't forget to chart some of those 1 or 2 percent moves over the next few days
and get your money back and promise yourself the next time the market hands you
a 30 pips stop loss, you take it, shrug it off, and get ready for the next trade.

Okay my friend ? If you'll do that for me, you and me will both make money together. What do you say ?

Thank you so much everyone for your wonderful words.

No matter what I do, I just can not bring myself to close my positions. I've calmed down a lot today, not scared anymore, fully accepted my responsibility and I'm ready to dig myself out of this hole. I'll wait for the european session to see what develops.

What TOSHI is saying is very close to my heart, I will try to trade myself out of this, My first work is to get out of this hedge, what would YOU do in my position?

If my sell position produces 30 or 40 pips shall I close it and take that profit?
or do you thing there will be more bloodbath today so I should leave them open?

If the market starts going back up, do you think it's wise to add to my position (average down) by buying some more? so that maybe I can brake even half way???


Thanks again to everybody.

My Brother..

today AU may go up to 0.635

just wait .. if somthing get aginst i will let you know.. , up to know indicators show it may go up to 0.635

Many time i was in like this situation and close trade (-2500$ ) and then after hours the price go to the rest and even to the profit area ..
..................................................................

God bless you.

relax and dont forget ya SL next time....

Just an update, the price moved down all of a sudden and I closd the sell position with a $300 profit.

So now I just have the big whopper loss position open. I also put in a pending order for another sell (hedge) at the low of friday's crash at 0.6031 just in case, I don't want to loose more then half of my account, have I done the right thing with this move?

WedWed your words are like sweet symphony to my echeing heart, I hope you are right.

Shoot me a PM.

my friend I hope you cover nigative pips.. If price go bellow 0.6054 it may go down more But upto now chart tel price look up to 0.6350

Allah youwafiqk

Being perfectly hedged is the same as being flat in the market. If you have $10k in the bank (wahey!), but owe $10k (aah, boo!), how much do you really have? 0. I'm afraid you are just going to have to grow a pair and eat the loss. Setting another hedge is just the same as putting a stop loss on your big losing position, but psychologically you can not handle seeing it like that. Cut the bullshit and do yourself a favour. You are way out of your depth here, admit you made a mistake and stop digging.

Put it down to experience and never over-leverage again, or else you might as well just set your money on fire now.

Go back to demo trading, now.

You were profitable in demo trading, right?

Now Aud very week Usd Strong .. it will go now down .597


before going down it will take brife up .6120 then Down Down.. just openion

First, close your trade.

Close the long and put the short for 25% you remain account then turn off you pc for some 3 days, god bless u, even win or lose you have to accept, or close all and take some days rest, you can begin to learn the other day because now you don't know what to do, do you?

/Sorry of my bad English

I'm getting sweaty palms from all this, but I just can't bring myself to close this position, somethings telling me the market will turn.

Gold is rising, RBA is intervening, this all should help this pair shouldn't it ???

Demo trading was good for a while, but you learn much faster this way I suppose.

I was following all the rules of MM, 2% rule and proper position sizing, it's just this ONE trade I slipped and the market had no mercy on me

Famous last words...

see ya later

After reading your update it is clear to see that you still haven't got the picture. Every opnion except one (YOURS) is telling you to cut and run before you lose more. There is a psychological reason you are continuing to hope beyond all hope to get back some of your loss and you MUST discover what that is or you will continue to lose.

The bottom line is that YES you can get your money back but NOT on this trade. Take you loss and move on. The market right now is strongly favoring the US dollar and you are going the wrong way.

There is some reason deep in your mind as to why you will NOT win. At least at this point. You must discover it. Ask youself these questions:

Why did I fail to put in a stop loss (or why did I take my stop loss out)?
When I discovered my mistake why didn't I close the trade immediately and reverse positions?
Why can't I now close this trade now when it is clear that it will not move my way for a very long time?

You've asked for help, and many have stepped up to do just that. But unless you listen and accept that help it is useless and you are back to having a really bad losing trade. The help you truly need is inside your head. This is an opportunity to learn about yourself. Use it to your advantage...I beg you.

I can totally relate, I,ve been in your position before, and here is what I might do if I was too stuborn to take the loss, but whether that is good for you or not, I cannot say, because a certain psychological frame of mind, will always, chose to lose, even though we'd swear this isn't true. I would keep the hedge, and only take the hedge off after a reversal candle, never less then H1, preferable H4 or D1, and the break, thereof... Don't be fooled by weak wimpy reversal candles in this market, they don't hold. Either close all positions, or put the hedge back on, at first sign of trend continuation... and/or strong resistance, and in my opinion this easilly happens at ema21,60,200, watch Daily pivots, and wait until candle close to tell the story.

More Power to ya,

Dan