Hedging question. you like it ?

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Peter Borren

Active member
Apr 8, 2017
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#1
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.
 

tomorton

Well-known member
Feb 28, 2002
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Exeter
#2
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).
 

Peter Borren

Active member
Apr 8, 2017
167
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#3
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.
 

tomorton

Well-known member
Feb 28, 2002
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#4
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.
 

NVP

Well-known member
Jun 21, 2004
35,586
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#5
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 ...
 

ph_trader

Active member
Oct 20, 2011
392
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#6
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.
 

Peter Borren

Active member
Apr 8, 2017
167
2
28
#7
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 ?
 

Peter Borren

Active member
Apr 8, 2017
167
2
28
#8
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.
 

Peter Borren

Active member
Apr 8, 2017
167
2
28
#10
Hedging actually is a trading strategy that basically we the traders like to use for reducing loss with certainly, but I think according to my trading understating by using hedging approach ultimately we are losing our equity , so it is better to close the order instead of hedging. and nowadays mostly brokers who are particularly regulated don’t allow hedging and scalping in their trading platforms.