EURUSD | Page 21439 | Forex Factory

Options

Go to
Permalinks
Print Thread

Related Instruments

EUR/USD, GBP/USD, USD/CHF

Similar Threads

MT4: how to change "EURUSD" to "#EURUSD"? 3 replies

Re: EurUsd short term 15 replies

did oanda just drop its spread for eurusd to 1 pip? 11 replies

EA for multiple lot limit order for EURUSD 0 replies

NFP nice bump up on EURUSD 2 replies

Attachments: EURUSD
Exit Attachments

EURUSD

  • #428,761
  • Apr 26, 2011 10:09am Apr 26, 2011 10:09am
Quoting johnnyrei
Guys let's see how it works out. I'm definitely not married to my trades, I just have some longer term positions too. Also, I traded long side of the market so even if I close those positions that i have on 1.4380, 1.4450 and 1.4550 - I would be in nice profit.

All I'm saying that I'm still confident about retrace to 1.40 - 1.41 area and eur/usd is topped. 600 pips can be easily reached within day or two....
another sensitive issue is hedging. While I'm guilty of using it sometimes, there really isn't any benefit to it. All it does is prolong the inevitable.

If you are good at picking directions, you don't need to hedge.
If you somehow do end up hedging, you are only giving yourself a 2nd chance. And if someone is bad at picking directions, that hedge won't do any good.

There was one a whole thread started by some of the most respected 10v traders and participated non other by a multitude of respectable 10v traders about hedging. The conclusion is there is no benefit of hedging.

The right way to do it is still to set a stop loss at a point where you think you are wrong. You gotta learn to accept the risk wholeheartedly.
  • #428,762
  • Apr 26, 2011 10:12am Apr 26, 2011 10:12am
Quoting thelws
another sensitive issue is hedging. While I'm guilty of using it sometimes, there really isn't any benefit to it. All it does is prolong the inevitable.

If you are good at picking directions, you don't need to hedge.
If you somehow do end up hedging, you are only giving yourself a 2nd chance. And if someone is bad at picking directions, that hedge won't do any good.

There was one a whole thread started by some of the most respected 10v traders and participated non other by a multitude of respectable 10v traders about hedging. The conclusion...

Simply put, having 2 opposing trades in EUR/USD, means you are really trading EUR/EUR.

Enough has been said about hedging here and elsewhere, one of those retailmyths that will never go away, just like gaps. Plenty of broker stooges will promote them on these boards, easy money for them.
  • #428,763
  • Apr 26, 2011 10:13am Apr 26, 2011 10:13am
for now scalping this range, works better for me atm

Attached Image
Don't be a hero. Don't have an ego. Always question yourself
  • #428,764
  • Apr 26, 2011 10:13am Apr 26, 2011 10:13am
Quoting thelws
another sensitive issue is hedging. While I'm guilty of using it sometimes, there really isn't any benefit to it. All it does is prolong the inevitable.
For losing positions you are right. Nevertheless it is good to be able to open a shortterm short together with a longterm long, most importantly because those big dogs can't run for your stoplosses as they do until you give up if you can nothing but exit.
  • #428,765
  • Apr 26, 2011 10:13am Apr 26, 2011 10:13am
Quoting thelws
another sensitive issue is hedging. While I'm guilty of using it sometimes, there really isn't any benefit to it. All it does is prolong the inevitable.

If you are good at picking directions, you don't need to hedge.
If you somehow do end up hedging, you are only giving yourself a 2nd chance. And if someone is bad at picking directions, that hedge won't do any good.

There was one a whole thread started by some of the most respected 10v traders and participated non other by a multitude of respectable 10v traders about hedging. The conclusion...
This is just my opinion, but to me, hedging is not being able to let go of a bad trade.
  • #428,766
  • Apr 26, 2011 10:14am Apr 26, 2011 10:14am
Quoting PipChick
This is just my opinion, but to me, hedging is not being able to let go of a bad trade.

Spot on.
  • #428,767
  • Apr 26, 2011 10:15am Apr 26, 2011 10:15am
Quoting cloggie
Simply put, having 2 opposing trades in EUR/USD, means you are really trading EUR/EUR.

Enough has been said about hedging here and elsewhere, one of those retailmyths that will never go away, just like gaps. Plenty of broker stooges will promote them on these boards, easy money for them.
paying spreads and tying up capital just for a flat position essentially, the broker benefits tho'
  • #428,768
  • Apr 26, 2011 10:17am Apr 26, 2011 10:17am
Quoting FibbinArchie
paying spreads and tying up capital just for a flat position essentially, the broker benefits tho'

Selling dollars to buy dollars with added spreads and commision thrown in for good measure. May as well go to your local high street bank with 1,000 euros, buy dollars, walk to the next bank and buy euros again, about as sensible as same pair hedging, and just as profitable.
  • #428,769
  • Apr 26, 2011 10:17am Apr 26, 2011 10:17am
Quoting thelws
another sensitive issue is hedging. While I'm guilty of using it sometimes, there really isn't any benefit to it. All it does is prolong the inevitable.

If you are good at picking directions, you don't need to hedge.
If you somehow do end up hedging, you are only giving yourself a 2nd chance. And if someone is bad at picking directions, that hedge won't do any good.

There was one a whole thread started by some of the most respected 10v traders and participated non other by a multitude of respectable 10v traders about hedging. The conclusion...
Well, I have a broker who allows me to open positions for buying and selling same pair at the same time. Hedging for me is to open position and then click on the same position and press hedge. But I have broker who allows me to trade eur usd in any direction at any time with any number of positions.
  • #428,770
  • Apr 26, 2011 10:23am Apr 26, 2011 10:23am
Quoting cloggie
Selling dollars to buy dollars with added spreads and commision thrown in for good measure. May as well go to your local high street bank with 1,000 euros, buy dollars, walk to the next bank and buy euros again, about as sensible as same pair hedging, and just as profitable.
If you are trading cross-pairs, you are also able to hedge, legally.
Say a short in GBP/CHF could be hedged by longing USD/CHF and shorting GBP/USD with half the quantity each. Those CFTC rules are a very bad thing.
  • #428,771
  • Apr 26, 2011 10:24am Apr 26, 2011 10:24am
Quoting frevd
For losing positions you are right. Nevertheless it is good to be able to open a shortterm short together with a longterm long, most importantly because those big dogs can't run for your stoplosses as they do until you give up if you can nothing but exit.

Why not cover your trade for profit then, use the profits to enter the counter, cover again, use even more profit to get back into your original long, doing that will always be mathematically more profitable then "hedging"
  • #428,772
  • Apr 26, 2011 10:25am Apr 26, 2011 10:25am
Quoting frevd
If you are trading cross-pairs, you are also able to hedge, legally.
Say a short in GBP/CHF could be hedged by longing USD/CHF and shorting GBP/USD with half the quantity each. Those CFTC rules are a very bad thing.
Yes it is a bad thing because at what point do you cut the trade that is under water? So do you really make any money?
  • #428,773
  • Apr 26, 2011 10:26am Apr 26, 2011 10:26am
Quoting cloggie
Why not cover your trade for profit then, use the profits to enter the counter, cover again, use even more profit to get back into your original long, doing that will always be mathematically more profitable then "hedging"
Exactly
  • #428,774
  • Apr 26, 2011 10:26am Apr 26, 2011 10:26am
Found the thread:
http://www.forexfactory.com/showthread.php?t=68598

Read this and you will never hedge again.
  • #428,775
  • Apr 26, 2011 10:27am Apr 26, 2011 10:27am
I have to share something with you. I showed to 2 of my friends my profits for last 2 weeks and this is what happend:
Attached Image
  • #428,776
  • Apr 26, 2011 10:27am Apr 26, 2011 10:27am
Quoting PipChick
Exactly

Einstein called compounding the 8th wonder of the world, use it. Don't go hedging, use compounding. I guess it takes an IQ like Einstein to understand it, goes over the heads of most retailers here.
  • #428,777
  • Apr 26, 2011 10:28am Apr 26, 2011 10:28am
Quoting cloggie
Why not cover your trade for profit then, use the profits to enter the counter, cover again, use even more profit to get back into your original long, doing that will always be mathematically more profitable then "hedging"
No you don't get it.
If I have a long term strategy I cannot simultaneously follow a short term strategy otherwise. If I'm longing EU on base of daily chart signals, I still want to be able to have some scalping shorts, not because my position is losing, but because I want some extra profit instead of waiting.
These rules just open the opportunity for gangsters to get everyone to exit, whoever has the longest breath, in terms of money, which are always the banks. They simply want to be able to control the markets, which is a very bad thing. The only thing they achieved so far is multiplying the volatility of each pair extremely.
We used to have a range of 120p on EU not long ago, now even 400p a day is reasonable.
  • #428,778
  • Apr 26, 2011 10:29am Apr 26, 2011 10:29am
If any one trades the usd/cad, its in the process of becoming a nice trade also.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCAD.gif Size: 12 KB
  • #428,779
  • Apr 26, 2011 10:29am Apr 26, 2011 10:29am
Quoting thelws
Found the thread:
http://www.forexfactory.com/showthread.php?t=68598

Read this and you will never hedge again.

Most retailers just don't get it, they think they are smarter then the best traders the world has ever seen and that they can outsmart everyone with a better mousetrap.

Ah well, brokers love the guys.
  • #428,780
  • Apr 26, 2011 10:31am Apr 26, 2011 10:31am
Quoting cloggie
Most retailers just don't get it, they think they are smarter then the best traders the world has ever seen and that they can outsmart everyone with a better mousetrap.

Ah well, brokers love the guys.
Keeps the brokers in business
639 traders viewing now