Hedging in the Forex market...How to trade with it...interesting tutorial topic

 

Hedging in Forex

The first nail in the coffin of the account ..

Or a lifeline for the account..

Or multiplication key and to be like a saw eating up or down..

The subject here will be an educational professional topic for those who want to turn professional in hedging. I will explain to you hedging smoothly makes this thorny road furnished with flowers in front of everyone if he/she proficient this kind of hard trading..

Be with us and encourage me to start in the commentary ..,

TO BE CONTINUED...

 

First, what is hedging? for those who do not know the hedging , is to make two opposing deals in the market on the same currency in order to fix a gain or loss and may often be in order not to continue in losses or due to the inability for the speculator to continue trading and he tired from the market and forced him to open the amphibolous contract to fix the floating loss in hope that he will profit from both directions , but the speculator forget that he has a negative deal and if he enter the hedging contract,he will has two complicated deals instead of one ,but he never remember that problem until after the execution of the contract , unfortunately ...

OK, hedging here will be profitable if you entered a contract to stop your loss, then come out with the hedging contract as a winner ,then the price rebounded to the first deal direction. but how this happens and how many times can you do that with successful way...

We'll talk more interesting about hedging and how to get out of it ..

This Introduction was inevitable , and now with the explanation ..

NOTE: SORRY FOR ANY BAD ENGLISH.

 

- The first thing that hurts hedge is late entry and long patience on the loss that is causing a huge loss,that is difficult on hedging to compensate .So the long waiting as a loser and then thinking about hedging lately,that seems like a person dead clinically and is trying to revive his heart with electric shocks. It would succeed little times and fail many times.

- The second thing hurts hedging is to enter the contract from the wrong place that does not have any meaning or login the hedging in order to stop the loss only, and this is a fatal error because you enter yourself into the guillotine. You must be careful in your steps and your login should be very Thoughtful far beyond the borders, because your wrong entering would lead to disaster and checkmate.

- Do not ever enter hedging until the candles closures and never opposite the mean trend. That means the hedging is to solve a problem of a deal was opposite to the general trend.

- Do not say that hedging relieves you psychologically. If it relieves you psychologically it could be the first nail in your account coffin , either you pull it out ,or pray for it.

TO BE CONTINUED...