Search the internet. Google "Forex Hedging". Have you found a clear strategy on how to escape the unmerciful strategy. Most traders who hedge has ended up using Martingale, and eventually get busted in the end. When this topics are seen in the internet, forum, and any social media platform like Facebook. People often ended up blaming the traders who hedge on not doing his best on analyzing the chart before entry, instead of helping out how to end it. Those who would like to help, with the lock of clear system to end up hedged trades, they will just point out support and resistance levels. It may help, but we all know that still that's not a clear way to get rid of the bad situation.
I have seen this all the time when reading online. This made me decide to get back to teaching, but this time I will give it away all for free to those newbies who deserve it and seriously eager to learn. After the Apprentice Program that I just started, I may go back to hibernation again. Unless, my new students become obedient with the whole process. If you are a newbie and want to jump the bandwagon, and you think you have the right attitude to get along with the process, you can just register in this link... http://eepurl.com/c0QPS5
Now, let's go back to the main topic.
There are two types of trader's behavior in a situation of a losing trade. Those who want to cutloss right away, and those who want to keep up with the fight, and possibly will hedge. To each his own. Both can be a good decision, if you know exactly what to do.
Cutloss - this is for those who don't feel hurt to lose some money. The question to those who do this is... "How can you recover the lost money in a short possible time?". Do you have a plan for that? It is easy to say or do that you will cut loss, but lost money is lost money. Are you doing it just to say that you are doing it properly to feed your ego? Or it is really a part of your exit plan?
Hedge to keep up with the fight - this is for those who don't want to see his account balance to decrease. Admit it or not, there are many traders like this. Their ego can't handle the feeling that their trade is a losing one. They just can't take it. But with this, the same question applies... "How can you recover from the hedge trades?". Do you do it just to keep up with your ego? Or is it really a part of your exit plan?
Once you answer this to yourself with complete honesty, you will eventually realize that everything else is the least of your problems except your "Exit Plan". Your exit plan will make or break your trades, and not your analysis of your entries. A complete design of an exit plan is what you need before you open a trade. Unfortunately, most of the traders don't give attention to this part of the trading plan. They are thinking that just putting an SL is already a good exit plan, or doing your best to get the direction, putting a tight TP with no SL is a good way to go. I'm sorry to break the news, but these are all misconceptions.
Stop-loss can be used, definitely for your exit plan. Hedging with no stop-loss is also a good way to go. But, there are a few things that you need to think about before you can execute them with high accuracy. Not 100%, but at least with high probability that you will make it a positive trade.
In the advanced part of the Apprentice Training Program, you will learn both. Using SL, and using Hedge with no-SL. These are for free guys, no string attached. If you want to learn this, catch us here... http://eepurl.com/c0QPS5
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