has anyone tried using hedge trades as a tool to lock losses

Discussion in 'Money Managment Strategies' started by squalodon, Jan 16, 2014.

  1. squalodon

    squalodon Regular Member

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    Have been trying to think of ways to minimize or manage losses during choppy markets.. and i think this is very promising.. but harder to manage..

    do you guys have any thoughts?
     
  2. robert

    robert Forum Newbie

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    Re: has anyone tried using hedge trades as a tool to lock lo

    squalodon,
    Well, here are my thoughts...
    When I enter a pulback in a trend, my stop is fairly close, so if I'm stopped out, no big deal. if I try to reenter that pair again (and maybe again) and get stopped out, then I figure the trend has stalled or is over and I avoid it.
    Having said that, if I trade something that is choppy looking, but with identifiable support and resistance (maybe like the GBPNZD sometimes,) then I just trade smaller and if need be, use a wider stop. :cool: But hedging? Sounds ok, just kinda seems like too much to deal with (and are there 2 spreads?)

    All the best to ya
     
  3. squalodon

    squalodon Regular Member

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    Re: has anyone tried using hedge trades as a tool to lock lo

    yeah thanks for the input..

    i discovered that although i could save myself from losses.. the stress was really not worth it.

    better to just wait out a confirmed signal for a new trend to occur.
     
  4. gauri

    gauri Guest

    Hello, The technique of covering risks connected with changes in markets behaviour. The difference between hedging and locking is the following: hedging is used with different trading tools.
    Thank you
     
  5. gauri

    gauri Guest

    Hello, An investment and trading strategy that seeks to limit losses or lock in profits by using two off-setting positions.
    Thank you
     

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