Hedging question. you like it ?

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Old Aug 29, 2017, 12:31am   #1
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Hedging question. you like it ?

My trading career right now, I am not willing to hedging at all , because I have bad experience when work using hedging , loss more wider than recover loss, hard part using hedging when should open lock hedging , this is like as dilemma, if good in analysis might possible become profit , but if wrong the way also will making loss more.
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Old Aug 29, 2017, 11:08am   #2
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I never hedge positions, in stocks or forex. Opening and running a trade and a hedge position costs two sets of commission / spreads / overnight charges, and serves mostly to ensure that profits are capped as well as risks.

For me, the best insurance against loss is more profit (and more profit).
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Old Aug 29, 2017, 11:28am   #3
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Peter Borren started this thread By hedging actually we can protect the trading account from a sudden blow up but here we have to keep eye on the spreads because if we keep on hedging, we will keep on decreasing the remaining pips number.
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Old Aug 29, 2017, 12:23pm   #4
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I don't mind if I lose the whole account in a once-in-a-decade blow-up, most of my capital is not exposed to the forex market.

But don't forget there are positive black swans as well as the regular account-killer black swans.
e.g. I should, by my own TA, have been short the EUR/CHF from mid-2014. That would placed me perfectly for the shock of 15/01/15. It will be the regret of my life that I wasn't in position.

Obviously, a hedge position would have neutralised that gain even if I had been short.
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Thanks! The following members like this post: options-george
Old Aug 29, 2017, 12:57pm   #5
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if the market spikes and you are not with a good broker you are dead anyway .....the move will cut you both ways and wipe you out

such is life ...
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Old Aug 29, 2017, 2:37pm   #6
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yeah, I cant actually say if its good or bad, but i guess it has its uses, the way i look at things is simply that there is benifit to it if done correctly, but can cost you if you are wrong. so basically if you are to hedge i guess hedge wisely.
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Old Sep 7, 2017, 12:00pm   #7
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Peter Borren started this thread
Quote:
Originally Posted by ph_trader View Post
yeah, I cant actually say if its good or bad, but i guess it has its uses, the way i look at things is simply that there is benifit to it if done correctly, but can cost you if you are wrong. so basically if you are to hedge i guess hedge wisely.
Yes , it is quite difficult to make sure hedging is useful or not. You have any proper time management when it is more appropriate to use ?
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Old Oct 19, 2017, 6:00pm   #8
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Peter Borren started this thread At present I am not willing to hedging at all , because I have bad experience when work using hedging , loss more wider than recover loss, hard part using hedging when should open lock hedging , this is like as dilemma, if good in analysis might possible become profit , but if wrong the way also will making loss more.
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