say I went short @114.70 hoping for the price to continue the down move, but the price reversed and a bottom is formed, in a regular trading we'd place a stop loss level and accept the loss. But with this hedging technic we can prevent losses and actually MAKE PROFIT because instead of SL I'll go long @115.00 with a double size order, and watch it go to our target as the price continue to retrace...
Now here is a chart to explain better, say I went short @114.70 hoping for the price to continue the down move, but the price reversed and a bottom is formed, in a regular trading we'd place a stop loss level and accept the loss. But with this hedging technic we can prevent losses and actually MAKE PROFIT because instead of SL I'll go long @115.00 with a double size order, and watch it go to our target as the price continue to retrace... {image}
As we always read in different stats all over the web 95% of the traders lose money, so it's a count down definitely. ...we start in a good shape to end up as broke as the Italian banks.
