Hedging & SL.

[arihant]

stop lost is like a must in every trader strategy, when the price goes to my direction then i set the SL at the entry point so when reversal happened i dont lose anything, and about hedging i prefer cross hedging over direct hedging, direct hedging is so plain that could make a double sword i think

[arihant]

but it wont as easy as it looks, if we use direct hedge then we will probably locked in that trade and waiting for both position closed before opening another position, and will be even harder if we use double hedge

[arihant]

yes, but the problem here is finding the correct support and resistance, if you able to predict it correct 100% then you dont need such thing like hedging and SL to trade, you will always win

[alam]

hedging is not that easy to use as i looks . there should be a experienced trader that hedging is use to take profits, and it can also make us confused during trades.. stop loss is easy to use and you save yourself from high looses that are called as margin call. stop loss is what , that a beginner can easily use as a risk prevention . for the traders like me, i like to choose stop loss as more effective than hedging.

[SG Trader]

i still difficult to apply hedging strategy in my trade,
because sometime the range of position is too long so, in the end of hedge position, my all position is get floating minus. so i think, i must improve my skill in this technique.

[dog]

hello brothers i don't know what is meant by hedging...actually what is hedging technique and how may i use it.is it profitable.anybody please clear my doubts and explain me about hedging technique

[sangam]

well in my view hedging is good if you are playing only with one pair. In one pair we can easily control money flow.
if we focus more then one pair then money management become more hard. finding exit and entry point also become a little bit hard.

Only if the trader is having knowledge about the use of Hedging and how to control it then he must use it. The main thing is that not all the times hedging is going to give us the profits since markets are very much risky most of the times.

[naik]

Yes, hedging is not quite good for newbie traders especially if you're not quite good in knowledges and never had any
experiences to use hedging. There is risk of losses more than before if you made mistakes when you unlocked position. You
could suffer more losses and it is possible to experience Margin Call if you didn't close well.

I will have to agree with you that hedging in forex exchange trading is not a thing foir the newbies to handle. It is complex and at the same time, it is a strategy that can make us to get losses in our trades.

[dragon]

i am fully agree with you because hedging is almost critical for newbie and when it go big loss then its really will not good for them but if use SL and TP then its better because we are taking particular amount for risk but when our experience level grow then we can use hedging or cut loss but before that its really risky .

Yes, hedging is not quite good for newbie traders especially if you're not quite good in knowledges and never had any
experiences to use hedging. There is risk of losses more than before if you made mistakes when you unlocked position. You
could suffer more losses and it is possible to experience Margin Call if you didn't close well.

[mohit]

i think hedging is the double edge sword which can useful and also at the same time can be dangerous also , it all depend on you how you use it in your forex trading