8/3/2005 Long CAD and short EURO futures.

Q

qtip

Hello all...

Looks like i am in a bit of a pickle.

I am currently:

short EURO at 1.2347
long CAD at .8273


I was Long the CAD futures first and then when things went against me, I hedged my position with the short EURO position.

As you can see, I am currently down in both positions.

I didn't see any news regarding the break out on the Euro so any extra info. would be great.

IMO, I think there might be a war in the Gaza strip when the locals will need to be moved by the end of the month.

Just a guess though...
 
Quote from qtip:

Hello all...

Looks like i am in a bit of a pickle.

I am currently:

short EURO at 1.2347
long CAD at .8273


I was Long the CAD futures first and then when things went against me, I hedged my position with the short EURO position.

As you can see, I am currently down in both positions.

I didn't see any news regarding the break out on the Euro so any extra info. would be great.



No comment by anyone?
IMO, I think there might be a war in the Gaza strip when the locals will need to be moved by the end of the month.

Just a guess though...
More...
 
Close both positions and move on? Eur and cad can go opposite directions for a long time (see May to July), you may just be adding fuel to the fire.
 
Quote from illiquid:

Close both positions and move on? Eur and cad can go opposite directions for a long time (see May to July), you may just be adding fuel to the fire.
More...

Yes, that could be true...

I might take a short on the Astralian dollar to hedge my position...
 
What's with all the hedging? No difference between a realized and unrealized loss you know, you don't need to bend over backwards over a "bookkeeping" issue, do you?

If you still think your original long CAD position is valid, keep that, determine the stop point where you are unquestionably wrong, and dump the rest. Why complicate things unnecessarily? Save your buying power for the next clear opportunity that comes by.
 
Quote from illiquid:

What's with all the hedging? No difference between a realized and unrealized loss you know, you don't need to bend over backwards over a "bookkeeping" issue, do you?

If you still think your original long CAD position is valid, keep that, determine the stop point where you are unquestionably wrong, and dump the rest. Why complicate things unnecessarily? Save your buying power for the next clear opportunity that comes by.
More...


Great advice..

I think it might be better to eat the loss and then start over again with a new trade when valid.
 
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