Hedging vs Stoploss?? What would you Prefer??

hello anybody who does hedging and tight stop losses in trading, i would like to know how it works and on which technical analsys or fundamentals you people do, its my pleasure if i come to know how it works as of i know most of the financial institues and big men do..

I think stop loss is a perfect order to place to save us from loss. It is in fact a very effective method. So I think SL order is the perfect way to save our account from being nill.

I prefer the stop loss for cutting and controlling my losses due to its simple nature that it works easily. Hedging is also a good option to control losses, but it takes extra skills to completely use it effectively when we are trading.

A forex aspirant should learn to use SL first. Hedging is a complex method to learn and if one doesnt have sound knowledge it will result in a complex situation unable to close the positions. Moreover hedging require opening too many trades and sufficient capital to bear the market movements for a considerable period of time. So my advice is to use sl for the moment and learn hedging later

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Originally Posted by forextiger

hello anybody who does hedging and tight stop losses in trading, i would like to know how it works and on which technical analsys or fundamentals you people do, its my pleasure if i come to know how it works as of i know most of the financial institues and big men do..

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I am using hedging not depending on any type of analysis, but using it in place of SL and trying to get some success in this one. But it needs us to wait for long time with patience for reversal and also you need to trade with lowest lot order. It is not suitable for the aggressive traders.

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Originally Posted by dmambi

I am using hedging not depending on any type of analysis, but using it in place of SL and trying to get some success in this one. But it needs us to wait for long time with patience for reversal and also you need to trade with lowest lot order. It is not suitable for the aggressive traders.

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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 .

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Originally Posted by dmambi

I am using hedging not depending on any type of analysis, but using it in place of SL and trying to get some success in this one. But it needs us to wait for long time with patience for reversal and also you need to trade with lowest lot order. It is not suitable for the aggressive traders.

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yes i agree with you..when we are going to trade with hedging then money money management is very important. in hedging we should open trade with low lot size becasue hedging trade may be open for long time.

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Originally Posted by s19

yes i agree with you..when we are going to trade with hedging then money money management is very important. in hedging we should open trade with low lot size becasue hedging trade may be open for long time.

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I think we should open small lots in all types of trading methods except scalping. Hedging is the good method to avoid Margin Call. I don't like hedging because it needs a lot of knowledge. I simply bear loss by applying stop loss.

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Originally Posted by gandhi

I think when you've mastered the technique of hedging and understand the range and characteristics of a pair you can just use hedging but if not you should use stop losses.

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I agree with you
But I recommend using Stop in all cases
To protect it for the account of the margin
I succeed also says that if the analysis is wrong will inevitably hits the Stop
But we consider is the loss of close to the best account of the loss

Hedging or stop loss may say mjhe to stop loss hi ziada pasand hay, hedging may to mjhe aksar double loss bhi uthana para hay, may nay kch din iss ki practice kee thi laykin ye bht mushkil strategy hay jisay follow kerna or samjhnay kay liay kafi training ki zarorat perti hay. simple stop loss hi mayray liay bht acha sabit hota hay.