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Agree, this is better place to discuss risk management issues than journal. Will try to be as clear as possible - in many cases YES, simple cross of S/R level by a certain amount is the failure of a pattern AT THAT TIME. I try to not predict, but simply REACT to what happens NOW, not what...

IMO proper distinction should be made between discussing stop-losses as hard orders sent to exchange which are automatically executed and limiting losses in general. Because from prior discussion it is unclear if those who critique stops simply don't want to "show their hand before showdown"...

Out -1% and done for the day.. Simply can't focus today for the number of reasons...

Long @ 1.5680

Stopped out b/e.

Short @ 675.

The area of 725 was a perfect short, but I didn't take it because for some reason was long biased and looking for longs only at that moment. Moral of the story: we need our eyes open and our mind just watching and NOT thinking about where it's more likely to go... Old wise saying just as...

Yeah, focus, focus and focus. :D Happy trading!



Nope. It's still the same. :D Cause nothing to stop you from simply getting in again at the same point where you would take out your hedge.

Here is an example similar to earlier: u long, then see an opposite signal, u hedge (no matter with what - option, basket or same...

Didn't take three other trades, one of which would've resulted in 2% loss and two 4% winners... Done for today, need to emotionally recover, have pretty tough family issues...

A hedge is either equal by it's influence to a stop, or it's not the hedge at all! Because if you REDUCE risk on a position that means EXACTLY THE SAME as simply bailing out some part of the initial position. And it absolutely doesn't matter if you hedge with the same instrument on another...

Roulette is not equivalent here, because in your example it's more like simply trading different trading strategies at once to diversify than to HEDGE the given position. In roulette, max risk of any bet is defined in advance, so placing several bets is an analogy of simply trading several...

Please give an example of how hedging instead of a stop-loss can provide any additional speculative advantage...

I prefer poker, because not a sucker to play a game with negative expectancy. :D But if speak of trading, any hedging is still like reducing the size or having no position at all and has no speculative reason, unless it's an arb play of course.

Out b/e, need to do some urgent things and simply can't keep an eye on position...

I absolutely understand the need in a short term short and a long term long, but as separate position, with it's own risk management EACH. And having a long and a short at the same time in ONE market = having no position at all, thats my point.

Long @ 815.

So you 100% hedge your trades in the same market if your outright trade goes "wrong", right? If this is true, at what moment do you close your hedge then?

Stopped out for 1% loss.

TradSTOX: I don't quite get the hedging concept related to outright trading. If you 100% hedge your losing position at some loss level, then it's exactly the same as simply exiting using a stop, but paying double spreads and commissions. Shortly - no single reason to do so. From the...