ive got 2shorts @ 14280 no SL and was not at pc to make hedge and now i dont know what to do... praying for EU to go down at least to 14280. Should have finished for today...
1. If the position is so big you need to pray for it to B/E or become profitable, close it or at least part of it to make it smaller.
2. Accept the loss now, rather than blowing your account.
3. Always set a stop loss.
4. Hedging in FX is the same as closing a position it is only beneficial for people's egos since you don't get a loss (or ok, sometimes profit) on the account balance. The negative (most of the time) shows on your equity, however people trick themselves into believing that if you don't close the position, you have not made a loss. That is wrong. Your equity is your capital value, if it's less at days end than at day start, you made a loss, no matter how you managed it (closed/hedged...).
5. It's your money. I've been there sitting and unable to close - in 2007 when GBP/JPY was falling hard. I lost thousands in 3 days, slept for 2 hours most and in the end I was left with a few k in the account (80% loss). Don't allow yourself to be paralyzed.
6. Decide for yourself. What I wrote are my opinions, my experiences, do what you will. Most of the people rather blow accounts than accept losses (happened to me often, I have safeties in place now, since I don't have a risk manager for my accounts and capital).
Thats it from me, I guess I've done enough contributing for 2011
Greed and impatience are our greatest enemies.
