I think hedging is only suitable for senior traders, who already have confidence in doing the analysis, because the trader beginner like me, still confused how to open hedging, and usually even greater loss
Printable View
I think hedging is only suitable for senior traders, who already have confidence in doing the analysis, because the trader beginner like me, still confused how to open hedging, and usually even greater loss
hedging is done in two pairs, it will confuse you, because some pairs have the same correlation in price direction, but sometimes the opposite direction.
hedging techinc not decide by the traders type..like senior or joiner.Quote:
Originally Posted by raja
hedging is apply when you are long term trader..not is for short term trader..
long term trader use hedging when the market going to move many pips opposite to their direction and their money management going to near unbalance.
you can aslo use hedging first try in demo then use in real account.
Hedging can also be done in a single currency pair. In this method you open an opposite order to the existing one, instead of Stop loss , to prevent the loss or margin call due to market movement in to the opposite direction.Quote:
Originally Posted by raja
if we trading with open sell and buy in one pair its not hedging strategy, its a locking strategy, hedging is when we open transaction with any pair to have correlation with first pair when open in market, example we open 1 lot buy in pair gbp/usd, to hedging we can open 1 lot sell in pair eur/usdQuote:
Originally Posted by dmambi
if this strategy could benefit could have done with discipline but if more disadvantages than benefits should be re-evaluated this strategy properly.Quote:
Originally Posted by tristia
Hedging can be used to protect the profit we made when the market is in correction or reversal we do not sure. Sometimes the market has a deep correction, that is really an examination for trader, but if we use hedging, we can be in less pressure. But if the market just correct for a small way, hedging can bring loss also.
Yes i am agree with you . its need experience also as well as patience because its may dangerous for newbie . anyway i dont use hedging but always prefer SL and in this way i manage my account .
Some time i open trade in hedging style instead of closing a trade but behind that my intention is not hedging rather earning profit from the undirectional movements.
I don't think heading a good option for minimizing losses. I think stop loss strategy is the best strategy and traders can be free for next trade in any direction.