Interesting. I didn't realize that. Either way, that was one of the only comments that actually engages with the content of the video. The others are all "I don't trust Youtubers!" and "hedging doesn't work!"
What do you guys think about Nick Shawn and his little hedging strategy.
- Thread starter rbigsby
- Start date
If you don't see the risk management value of hedging ...
Maybe you don't understand risk or management or both.
IDK about fascinated and mesmerized, more
like gullible.
Traders need to develop their own strategies.
I'm not saying that people lack integrity, just
questioning why they are using YouTube for
income if they are making so much money
trading, or whatever.
An example would be a video with a title
that goes something like this:
"I Make $10K/Month Doing Such and Such"
But in the actual video, other people are
profiled as examples. The YouTuber does
not divulge how they supposedly made
their $10Ks.
I'm amazed that YouTube even allows
people to make such income claims since
anybody can say just about anything.
Anyway, if I was making $10Ks per month
doing such and such, I wouldn't discuss it
on YouTube or anywhere else, unless it's
a seminar/webinar people paid me for.
Have a great day everybody!
Can you reproduce the hedge on the MSFT chart just using shares? Youtube man is talking about FX hedge, same instrument opposite trade. Not some put option on msft holding already in profit.
Whatever the MSFT hedge in your chart is, it has the same payoff of a sell to close and take profit, flat.
This is exactly the same payoff.
I don't know what the guy is doing.
But if you hedge below X and release the hedge above Y
Then the payoff is the same as the Call option depicted in the picture.
PnL is flat below X and linear above Y minus costs of hedging.
The less efficient your hedge, the more costly it becomes.
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The man there uses opposite orders where one does not cancel the other. Flat without realising the floating PNL because the broker let him have 1lot long audusd and 1lot short audusd at the same time.
No advantage to being flat, no position.
Unless part of some different strategies managed in the same account... like MKtrader mentioned.
Yep, that's apples and oranges. He's basically hedging to continually switch directions until he finally gets a big enough move to close with a profit (or a loss that's not too big).
The only question is, can he prove himself?
If he let a 3rd party audit his results, he'd have a lot more credibility. Of course that's true of like 99% of vendors and Youtube traders.
I literally defined what a hedge is according to what the guy does in the youtube video, and you post an option as example? you either didn't see the video or don't know how to read, or both.