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

Looking at AUSUSD now, Looks like you must've recovered all/most of your losses. Damn, thats one bad way of learning a lesson. Now you can trade normally without worrying about a big hole

It had happened to me, but am not as lucky as you are. l lost all my funds in the trade. so good luck and don,t try this.

This was a classic case of buying a top and hedging a trade at a bottom. So also a classic case of selling into a hole with your short.

My reccomendation learn how to read a chart. Learn what really moves the market. As I have stated many times before the indicators that most use will not tell you that.

Side not i sold at 6500 a few hours ago

Fatdude! Hey, I hope you were paying attention when the pip gods smiled on you and that you weren't asleep at the wheel! Damn, how bad would that suck?!

You guys are gonna CUSS me to death, I know.

First of all I would like again to REALLY thank all for thier outstanding support. I was glued to the monitor all yesterday and nothing happened, I live in the middle east so that big move came in the middle of the night for me (2 am my time) SO I BLOODY MISSED IT !!!!

One more bad thing now is that 2 days ago I placed another sell hedge to protect what's remaining of my account, well that big surge by the RBA intervention took that sell and now it's active, so I'm still in the same blimy situation but now reversed, but somehow I'm not much worried about that sell as I belive that once this intervention is over the market will resume it's downward trend. That BUY is much more dangereous.

I managed to place two more trades inside of my two hedged sandwich which netted me another $1000 and now I'm hoping that this is just a retracement and the market will test the 0.6500 one more time and I'm out of there in a flash. I'll be glued to this monitor all day today.

Now another delicate subject I would like to discuss for more insight, (BTW I have read Trading in the zone and lots of other books alike)

WHAT IS WRONG WITH HEDGING !!!
I know this is very contervercial, but something has happened with my trading this past few days.

Before I used to keep placing trades with stoplosses 40 to 50 pips away, and 6 or 7 times out of 10 my SL was triggered.

But during this 2 or 3 days I placed lots of trades with no SL as I was protected on both sides by both my hedges, and they were all winners NOT because of my good trading but because the market eventually turned.

My question is if you are in a trade which goes against you for 50 pips, why not hedge and wait it out for a couple of days instead of SL and taking the loss. If after a few days your hedge is not working out, THEN you can close out both the bad trade and the hedge at the same time for the exact same 50 pips loss plus 2 or 3 pips extra spread, BUT you gave yourself a SECOND chance for a comeback, while with a SL you had zero chance.

So I know in my first mistake I let the trade go far out of my reach, but had I gone back in time now, I would have put a hedge 50 pips below instead of SL, if after 2 or 3 days nothing happened THEN I would close both, what is wrong with this, I created a second chance for myself. I have read MANY threads on the bad of hedging including the all mighty thread started by MERLIN, and I agreed to them, but once I treid this hedging for myself, it's a different feeling all together.

Here is a pic of yesterdays activity, on today, I really hope this market will touch 0.6500 one more time.

Thank you again.

Mohammad Reza.

Mohammed,

I'm sorry to say I'm really disappointed. Everyone in this thread has given you really good advise and you have ignored all of it. I know one must sleep but there are several tools available to wake you up when a price reaches a certain point. If nothing else you could've set a price alarm to wake you up.

I hear you using words like "hope" and "I think" and now you are placed in a position where no matter what you do you will lose. There is an old saying that says, "when you find yourself in a hole, STOP DIGGING". You still don't understand what these people are telling you. Pehaps I can clear it up for you.

There is NO technical analysis skill that will benefit you in this situation. CLOSE YOUR TRADES!

Then go back and read each and every one of the posts on this thread. There is some very good advise. If after you have read these posts you STILL do not understand or take to heart what is being suggested. Go be a plumber! You are not going to make it as a trader for very much longer.

This is serious. Learn your lesson or you will be forced to repeat it. When you first wrote you had only one bad trade...now you have two bad trades, each going opposite each other. No matter what happens you will lose one or possibly both. You cannot "scalp" your way out of it.

OK I'll get off my pulpit now. I hope for your sake you can learn from this experience but I now have serious doubts.

It really doesn't seem like this has been a lesson for you whatsoever.

There is a lot of good advice on this thread so far so maybe a casual re-glance over might do some good.

Want to know what hedging is. Read this thread and read Merlins comments only.

http://www.forexfactory.com/showthre...ighlight=hedge

If after you still think what you are doing makes "sense". Then re-read the thread again, and then again.

Best of luck

Mike

gspajon and verto, your words are golden and there is NO one here including me doubting them, I have read advice like yours and other a THOUSAND times before and TOTALLY agree with them WORD BY WORD.

BUT I never imagined how HARD it would be under LIVE conditions to swallow those words, I have now realized that my money is SOOOOO precious to me that these losses under real money is SO powerfull that I'm willing to give them all the chances they want to avoid loosing.

I know you have all gone through these stages, so let me also go through this phase of my trading, the last thing I want is to insult any of you as BELIEVE me I have come to love each and everyone of you through your posts. I know I asked for help in the first place, but not help in closing my position straight away which I could've done, I wanted help in managing a hedged position effectively which I'm finding a very hard task to do.

Bottom line is price action rules, and what I see is just a retracement in the overall downtrend market, there is no reason why both of my positions should not be profitable.

0.6330 or 0.6340 is where I believe the price will turn and head up to test the 0.6500 again. There is one more intervention I believe coming before the price falls down sharply again.

Thanks again and hope for your forgiveness in this matter.

Its comming down again

Hedging ties up twice the money for a NUETRAL POSITION. AND you pay twice the spread..... My other comment is that I believe you are risking too much of your account and are having trouble being wrong and feeling that pain. You better get used to pain. It looks like you are rationalizing hedging as a viable trading practice because you can't psychologically handle being wrong. Think about that. Go read the links Mike set you. Learn how to set take profit pionts so you don't have to be awake to close an order. If you can't do that WHY ARE YOU TRADING?
Dion

Yeah, what hipster said.
For another thing, what you are doing isn't even a proper hedge. Your only slipping your position into neutral--and at a cost. A real hedge would be done with an option.
What's wrong with your way? You were waiting for a huge retracement and by a stroke of luck it came. But your Hedge neutralized the move and robbed you of your revenue; that's one of the things wrong with it.
I wouldn't bother trying to convince you, but you did say you are playing with the only $$ that you have and it's hard to stand by and watch you hand it over to the market so quickly. The only way to hand it over quicker is to continue the way you are, but with exotic pairs.
A lot of folks are trying to help you salvage part of your account, and some of them have been doing this a while.

I wish you luck.

UPDATE:

OK fellas, after a long hard talk with myself, I've come to this IRONCLAD rule from now on:

HEDGING WEATHER GOOD OR BAD IS NOT FOR ME ANYMORE !!!

I've got 3 small boys and they bother me and get on my nerves ALOT, but the amount of stress and sleepless night I went through this past week was just unbearable. Trading is NOT fun like this. Your advises started sinking in slowly for me.

Rule: I will NOT be trading with more then 2 mini lot from now on.
Rule: NO MORE HEDGES, just a plain and simple 50 pip SL and get it over with.

OK now the market was kind, it gave me a 3rd chance and I exited my week long buy position with $200 profit. Now my sell is 530 pips in the red and half my account is gone, I see a downtrend line about 80 pips up ahead, I can make that but anything over that then I'm toast and don't know what to do.
The last thing I want to do is put up another hedge position.

What is your general outlook on this pair? still bearish? when do you think this bank intervention will end?

Mohammad Reza.

salams
good luck....emphasizing LUCK

HOLY MOTHER OF GOD !!! IT'S GOING UP LIKE THERE IS NO TOMORROW.

Now I wish I did not close my long position. I don't want to put in another long to freeze my position because of my bad luck, I know the MOMENT I put in that long, the market will turn right around and shoot down again.

Now 600 pips against me, account down 60%.

Mohammed,

Congratulations on getting some of your money back. You've been blessed. But you STILL don't get it. You are STILL holding a position that you should've closed long ago. Cut it loose!

Before you begin your rationalization spiral let me just guess what you're going to say. "Well if I hadn't hung onto this trade I would've lost, so holding a bad trade isn't necessarily bad if I just wait, maybe just maybe the other bad trade will be alright too".

Now you are looking for and asking others to help you justify this hope with some hard evidence using chart reading. You are asking us to "predict" the market's direction in the next few days. It doesn't work that way and you KNOW it. But because you are so desperate to salvage your position you are still making more bad decisions and are NOT LEARNING!

It isn't just making hard and fast rules, it is also keeping to them and you're still not doing that. Like I said earlier no matter what happens you will lose. Not because of your hedge or lack of risk management but because of something you refuse to look at.

Your psychology is making you lose. You are not being open minded about yourself to learn what is causing you to make such irrational decisions. You may make a few good trades...so can a monkey. The difference is that you must use discipline to pull the trigger no matter how bad you "think" it will hurt. You must learn to seperate your emotions from your trading or you will NEVER win consistently.

You yourself have said you can't sleep, that trading is more stressfull than your young children. These are all emotions and they are causing to to justify holding bad positions or engaging in harmful trading practices because you HOPE it will work.

All of us are hoping you don't lose but your continued posting is not showing the change in psychology that needs to happen for your to win consistently. You've had a stroke of LUCK and that's all recognize it take your losses and LEARN I beg you.

Ok content removed, I'm sorry. But I have NOT lied or hurt or screwed ANYBODY my whole entire life, in fact I ALWAYS give 20% of my monthly salary to charity, what makes you think I'm a bad person.

not to be blunt..

can you not waste time and write useless posts? i don't understand what you are trying to achieve here. I hate people who want to be told what to do..but i DESPISE people who won't do what's good for them after being told over and over again.

that precious money is gone! serves you right for gambling like that thinking this is gonna be easy. I'm so sorry for all those who you have screwed.

peace

X2

This thread is starting to get dumb. OP has been given solid advice on *numerous* occasions and still refuses to accept it. Either take the advice or leave the forum - this is getting old.

Mohammed,

This money was intended for your children right? So why not discuss this with your wife, or signigicant other person. I'm sure she will say the same thing...get out while you still can. Which is worse, lose 60% or 100%?

I know this is hard. As many have said we've all been there...myself included. Closing that "life changing" trade was the hardest thing I had to do and then I sat down and cried for days. I felt I was washed out and since I had quit my job to be a trader I now had no income...but it will pass.

I finally decided to learn and do it right...while I cannot say I'm perfect, I am ALOT more consistent and am still trying to make back that bad decision. But it am almost there.

Use this experience to your advantage. And by the way. TELL YOUR WIFE she can help you ease some of this pain. I assume you're married because you love each other. Allow her love to help you through this....or...when she does find out she will feel as bad as if you cheated on her.

You again asked what to do so here is a simple list.
1) Close your bad trade
2) Turn of the damn computer for at least a month
3) Tell your wife what happened and try to figure out a plan to recover the money
4) If after all this you still want to trade, begin your quest of learning about yourself and your psychology. That individual inside your head that is making you lose.

Like you've seen here there are many people, STRANGERS, who have stepped up to help you. Myself included. We all pull together and want to see you succeed. But with growth also comes pain. Are you strong enough?