Surf's Special Situation Journal
- Thread starter marketsurfer
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obviously, everything feeds the machine- our goal is make sure we feed it as little as possible----proper hedging aligned with position sizing simply decreases the costs--this is why all the forex dealers push stops heavily as they actually increase losses over the long run--- these devious folks also push TA for the same reasons-- their wins are your losses--- very naive not to understand market 101.
Quote from Brass:
Okay, but you still haven't generally defined the nature of your hedging.
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Do you think surf is long the JCP competitor? To hedge?
For example one is Macy's.
Hmm, but really he will lose all the profit of his long hedge if he stay in the bad trade of short JCP too long in time.
Surf, do you want to talk about your hedging? Or is that secret?:eek:
Except when I do it.
Check out the Bitcoin thread, the complete fulfillment of my prediction 6 weeks ago even surprised me. And that was completely TA based, it was a typical blow-off pattern, (exponential upcurve followed by an immediate meltdown)
Some patterns are forever...
http://www.investopedia.com/terms/b/blowofftop.asp#axzz25oHYw2Lb
Quote from trendlover:
I have no idea. I'm not even concerned with the specifics of surf's hedging. I'm only interested in the most basic of generalities so that he can explain how "proper" hedging decreases overall costs (of transactions and bad calls) better than "proper" stop placement?Quote from Brass:
Okay, but you still haven't generally defined the nature of your hedging.
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Do you think surf is long the JCP competitor? To hedge?
For example one is Macy's.
Hmm, but really he will lose all the profit of his long hedge if he stay in the bad trade of short JCP too long in time.
Surf, do you want to talk about your hedging? Or is that secret?:eek:
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Ok yes. (If) surf have put stop loss for his short JCP (when he place his short bet), than he will have more profit on his long bet of the competitor hedge (If that is his strategy hedge).
Surf is saying (position size). So I guess if he lose all his money on the JCP short, he really do not care because he only make the small bet of money in compared to % of all his trading money. I am guessing. I really do not understand the game like you do. I like to read and watch!
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