Much depend on luck, but the more you practice the luckier you get! NT & GP
- | Additional Username | Joined Mar 2012 | 2,539 Posts
When the Joker is in the deck.. fear not and play it well
High leverage vs Low leverage 72 replies
High Leverage vs Low Leverage 21 replies
High Leverage vs Low Leverage 20 replies
Working of Leverage!!! 4 replies
Right now My metatrader3 is not working is yours working? 0 replies
DislikedVarious states, you mean price moving? Sure, but to profit (or lose) you need to be net long or short. If you know another way then please share it!Ignored
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This seems to be a contradiction. I gave you an example of a hedged position. Context won't change anything according to you as you are net short, long or flat, then why the need for additional information?Ignored
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to close a position you could become flat in the sense of not having any position at all and therefore you are not necessary net long or short.Ignored
DislikedLet me put a twist in your thinking by asking you this question:
If you can show me the benefit of locking in -2900 pips of floating loss by being long on EurUsd at 1.59 and short at 1.20,
I will show you the benefit of locking in 2900 pips by being short on EurUsd at 1.59 and long at 1.20.
If you still don't catch my drift... the benefit of both would be the same. And for the most part it will be a psychological benefit. But if it is about monetary terms, then there is no benefit.Ignored
DislikedOk good, and would you be able to profit from not being net long or short? If so, how?Ignored
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lol, Buy EurUsd at 1.30 and close it at 1.31. That is 100 pips of profit and I am flat, having no position at all.Ignored
Dislikedlol, Buy EurUsd at 1.30 and close it at 1.31. That is 100 pips of profit and I am flat, having no position at all.Ignored
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Hmm, ok I see we approached it from two different perspectives. I see what you intended to convey is that the pre-condition to a profit was to have been net long or short.Ignored
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On the other hand my angle was that a profit is not a profit until closed as a profit (realized profit).Ignored
DislikedSorry it seems like so long ago, what was the question again?
Oh yeah, flawed, dunno still couldn't say....more details!!Ignored
DislikedIs there any other way? No matter how anyone slices and dices it, at the end of the day the trader needs to make a decision about direction, it's unavoidable, even for nedging there has to be a decision to close one side and let the other side run, thereby having a directional bias, potential for reward, and of course exposure to risk.
Uh-oh, does this mean that you also believe an unrealised loss isn't really a loss until closed as a loss? Look up mark to market and the recent financial crisis to see the pros and cons of such accounting...Ignored
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My personal conclusion is that to make a blanket statement that one cannot be profitable in the long run incorporating hedging into your strategy is nonsense.Ignored
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No, I did not imply that, the principal of prudence comes to mind here.Ignored
DislikedDid someone say you can't be profitable in the long run if you incorporate nedging into your strategy? I must have missed that bit.....I think what most knowledgeable traders are saying is that it makes absolutely no sense to have long and short positions of the same size on the same pair because in effect it means you're flat. If you're going to be flat then be flat, why tie up margin and why pay interest on a tactic which offers absolutely no benefits?Ignored
DislikedPeople who use nedging may well be profitable in the long run, if they are then it's despite nedging not because of it.Ignored
DislikedI wasn't implying that you implied it, it was a question hence the question mark, nevertheless if it was an assumption I think it was a reasonable one to make bearing in mind you haven't been exactly forthcoming with specific information in your examples. There, now that's what I call hedging, lolIgnored
DislikedI see the benefit in having both shorts and longs of equal size on the same pair.Ignored
DislikedJust, because I am flat today why do I need to be flat tomorrow or a week from now? Specially if both my long and short today are in the money.Ignored
DislikedYou can be profitable when "hedging", you'll just be less profitable. You can also lose money not "hedging", you'll just lose less. This is mathematical fact. Why is it so hard for people to see this?Ignored
DislikedPeople see leprechauns too.
If you want to be flat, then don't have two offsetting trades on - just be flat. Tomorrow or next week, whenever you want to take a chance, then open a position. It's really that simple.
I assume you meant lose more. Less profitable, losing more - Could be, but also maybe not
Hmm, that mathematical proven stuff is thrown a lot but never shown. How can you show it if you don't even know the strategy? I would say trading is synergistic where 1 + 1 = 3 and 1 is not 3. Profitability is...Ignored
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Hedge method
1.0000 - Buy ENTRY (pay 1st spread) Pay Rollover for 1 position
0.9000 - Ohnoes... price went wrong way
0.9000 - Hedge (by selling). (Pay 2nd spread). Pay Rollover for 2 position. -100 pip floating loss
0.7000 - Price reversing. Oh yea. Close hedge leg. +200 pips.
1.1000 - Oh yea. My original position made 100 pips.
Total pips made: +300
SL method
1.0000 - Buy ENTRY (pay 1st spread) Pay Rollover for 1 position
0.9000...Ignored
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Hedge method
1.0000 - Buy ENTRY (pay 1st spread) Pay Rollover for 1 position
0.9000 - Ohnoes... price went wrong way
0.9000 - Hedge (by selling). (Pay 2nd spread). Pay Rollover for 2 position. -100 pip floating loss
0.7000 - Price reversing. Oh yea. Close hedge leg. +200 pips.
1.1000 - Oh yea. My original position made 100 pips.
Total pips made: +300
SL method
1.0000 - Buy ENTRY [b](pay 1st spread)...Ignored
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It's pretty sad that this has to be explained to some people. Maybe not so much for a brand new beginner, but for those that claim to have been trading for over a year, so sad.Ignored
DislikedThe more "hedged" pairs you have, the more you will pay for rollover and spread.Ignored