Hedging:
(Currently brokers from the United States (NFA, CFTC Regulations) do not allow trading using this system).
For some people considered Hedging is a way powerful enough to achieve any profits yet again tactics, strategy and the way that his name will always be inherent risks I personally prefer to save the hedging position or lock our defeat. One disadvantage of this is in terms of hedging a long time, demanded a faster calculation and careful, could affect our psychological terms for the impatient. As a result we can actually get stuck into the minus points higher.
The basics of hedging
Hedging is a state where we open 2 opposite position is opened concurrently open buy position, but also simultaneously open sell positions open simultaneously without the pasangi stop loss but it is usually only target profit range profit targets 30-50 poinan As for the goals and objectives is that we might profit when the price of a good swing occurs when prices are bullish or bearish when price
The workings of hedging:
At the time one reaches the open position of the target such as 50 points earlier, the open position is automatically liquidated so that you only have 1 position are still minus 50 points next step is to wait until a minus in that position only reduced slightly such as from minus 50 points so stay minus 30 points. If true minus reduced, then we will do the opposite of open positions anymore but in fact we've been lucky 20 points and so on where the process of running an important point to remember is that we must be consistent according to our targets should not be nervous if for example the two positions instead of minus all think with rest assured that whatever actually happened minus you will not be more than the numbers that have been in that key.
What will happen after I tried to wait some time in the hope of living my position on this one minusnya reduced, but instead actually be on the increase?
This is one disadvantage of these hedging tactics no one way to do so as soon as possible to do the opposite of open positions before minusnya increasingly large with the hope of future opportunities to reduce the negative will always be there.
Ideally praktekan hedging system if one of the positions suffer losses ranging from 30-50 poinan only. Systems have started to feel heavy hedging in praktekan if one position had suffered losses of more than 100 points one way to reduce the minus points are that we will discuss this at the following session.
Average
Average is one way to minimize losses by opening the same position.
Examples of open buy the first you've lost -100 points then you immediately open the open position and then buy again if the price moves downward to reach 100 points then you will find a position like this: open your first position to profit 0 while the second open position to profit +100 if this happens then you can still get a profit
But if it feels we are in the open position uncertainty will tend to even more loss then it could take the middle road that is open the first position of minus -50 otherwise we close our second open position profit +50 we also closed then we will get in neutral conditions return (our capital is still intact)
EURO-USD case
Open positions 1 buy-in: 1.1919
Price tick currently on: 1.1819
Losses on the current position of 1: -100 points
Open positions open again
Open positions 2 buy-in: 1.1819
BEP target in: (1.1919 +1.1819): 2 = 1.1869
At the time the price moves in the price of 1.1869 means that you've reached your breakeven point can liquidate the two principal capital position and you are still intact are not reduced
Average weaknesses in the system:
Average system has weaknesses that could even further increase the burden of minus points then this system should be conducted if the loss has been achieved in the range of 100-150 points. And do not forget also the basis of decision-making is still guided by the principles of High and Low range that you have learned in the beginning so that although you still lose you can still get the best price.
Core that we must understand is how when we lose, the defeat was not necessary to reduce our principal capital. If mengurangipun try at the point of minimum.
This is why the capital used for trading just 10% of the capital goods we use to prevent the things that are not desired
Forex trading system is simple, so simple even sometimes makes us forget or indifferent and think everything is still to be addressed and within the limits of tolerance
May see little value that we still tolerate it but underneath all of that stored an enormous danger that threatens your overall financial situation.
There is a real story that tells at the beginning of the white colonies in the Americas, the white people are buying Manhatan island natives of New York from the Indians with beads 2x valued at approximately USD 24 only.
But if the money of USD 24 is in the tube with 4% interest only, the Indians were now can buy back the island of New York Complete Manhatan contents skyscraper buildings even still get back. There may be some of the readers who have heard this story. Then Albert Einstein once said flowers that bloom is the 8th wonder of the world
Many major defeat such attitudes arise from heavy losses arising from trivial and stupid things that if we think in peace then we will wonder why we are able to do that stupid. But that's a fact
Faced with greedy greedy attitude, although in theory is easy but in practice from antiquity to the present remains the toughest enemy in this life