pepy Posted June 9, 2016 Share Posted June 9, 2016 This is why a trader should be so much careful when trade by use hedging. All you need is trustful indicator as your lead to decide whether you want to hedge the position or not. By doing that you can carefully plan your activity as trader when hedge and reduce unecessary hedge which cause more loss. Well this is really interesting thing to do, but you know in practice some people trapped with their hedging. Some people cannot trade well and suffer unstoppable loss, their loss stay intact when they lock their position by hedging it and to make it worse they don't close the position at the right time insted getting profit they suffer more losses. Quote Link to comment Share on other sites More sharing options...
myregister Posted June 12, 2016 Share Posted June 12, 2016 Yes i am fully aware of that case, many people trapped in their trading because use hedging and cannot find the right solution for their hedging decision. Actually this is a downside but more to people's skills but the advantage of course able to supress more losses and if we are skillfull could turn the table of our trading from losses to profits. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 30, 2016 Share Posted June 30, 2016 Yes i am fully aware of that case, many people trapped in their trading because use hedging and cannot find the right solution for their hedging decision. Actually this is a downside but more to people's skills but the advantage of course able to supress more losses and if we are skillfull could turn the table of our trading from losses to profits. I think it is all about experience and how people deal with this issue, the downside is just like what you said where this trap is persistent but the key to solve it is to release which position doesn't favour you, if the trend is bullish then release the sell positions and if the trend is bearish then release the current buy position. Quote Link to comment Share on other sites More sharing options...
myregister Posted July 30, 2016 Share Posted July 30, 2016 I think it is all about experience and how people deal with this issue, the downside is just like what you said where this trap is persistent but the key to solve it is to release which position doesn't favour you, if the trend is bullish then release the sell positions and if the trend is bearish then release the current buy position. You mean the hedging trap? Well if you are as trader from the start doesn't make any mistake by open at the wrong time i think you could avoid it. Well i don't want to preach but to be honest hedging is very useful at its own time, and based on carry trading use different brokers which i've been saw. And not just that hedge fund manager also use hedging for protect their assets. Quote Link to comment Share on other sites More sharing options...
Vaabum Posted April 30, 2022 Share Posted April 30, 2022 The ability to use this tool correctly can really bring money. But, please read it - it is correct to use it. Quote Link to comment Share on other sites More sharing options...
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