DislikedNice one quoting hedginghog completely out of context. Did you neglect to read the bit about what you are doing is 'utter bollocks'? Yes, he summed it up perfectly didn't he.Ignored
Dow futures point to more than a 1,000-point fall at the open 1 reply
Hedging 34 replies
Pivot point reference point? 7 replies
Hedging strategies 7 replies
DislikedNice one quoting hedginghog completely out of context. Did you neglect to read the bit about what you are doing is 'utter bollocks'? Yes, he summed it up perfectly didn't he.Ignored
DislikedI don't understand something. So because of this it's a waste of money.Ignored
DislikedNo disrespect intended, but it seems that you're trapped in a mindset that somehow views hedging (in the same pair) as a trading strategy, but overlooks the underlying math.
Be willing to clear your mind of those preconceptions, and think beyond them, just for a moment..Ignored
QuoteDislikedIf you have (for example) 3 lots open in long positions, and 2 lots in short positions, that's exactly the same as simply having 1 lot long, because the P/L of the other 2 longs and the 2 shorts will cancel each other. True or false?
QuoteDislikedNow it doesn't matter whether the market rises (for example) 25 pips, or falls 25 pips, the net P/L is the same in both cases. (3 x 25) – (2 x 25) = (1 x 25). OK so far?
QuoteDislikedThe same can be said of any hedged position. It can always be replicated by a single net position. Think up any combination you like. For example, the net effect of 6 lots long and 2 lots short is 4 lots long; the net effect of 70 lots long and 100 lots short is 30 lots short.
Dislikedthe thing you're not taking into account is taking profits during range times which is 90% of market movement. This is what it was designed for.Ignored
DislikedThink beyond my preconceptions? Is this my strategy or yours?......Ignored
Disliked"There seems to be some perverse human characteristic that likes to make easy things difficult." ~Warren BuffetIgnored
DislikedYou didn't read "EXACTLY" what I said I did. Sure it's a net exposure of zero but at the time I open the sell I have a profit of +25 on the buy side locked in.Ignored
DislikedNedging? Nedging? Now I have heard it all. This place has some real classics here.Ignored
DislikedWell I hope to learn something from you so... can you tell me why you wouldn't simply just close your 1 lot long to "lock in your profits" instead of opening a 1 lot sell in the same spot currency pair to do the same?
Ignored
DislikedIf I attacked you or what seemed like an attack. I am sorry it was not my intention. If you look back thru all the posts here you will see that I am attacked by 99% of the people viewing this thread that post.
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It pisses me off when people refuse to think for themselves or to not read the basic principles. They try to rob me of my own thinking.Ignored
DislikedI have been reading numerous posts and article on this topic lately trying to understand the true benefits of hedging, but i still don't get it and see it as a pointless exercise.
Here what i have gathered and understood so far:
1) Hedging reduces risk.
Typical example given: You think EUR/USD will go up, so you long 50 Lots, Short 30 Lots to "hedge position" and if your wrong you will have lost less.
****My understanding - Why not just go Long 20 Lots since the net position is +20, yes you lose less, but you also gain less if it goes up,...Ignored