Anyone use direct (indirect if you're good enough) hedges instead of stops?

[sighthound]

OMG, and there's me thinking mowing the lawn was a chore

 

[Chartsy]

I just did a sex wee

you did that last night, too.

**** sake all over me noggin'

 

[scose-no-doubt]

Stop posting horrible f@nnies in my thread!
JHC I've got one guy posting suicides and anther posting fetishes.
I'm starting to think that this trading lark makes you insane.

 

[scose-no-doubt]

Well, if you trade one instrument and have a view only on that instrument, the only hedge is a stop. As soon as you add more trades, no matter if it's one or several, you have a portfolio and everything I said applies. To me, it's clear that hedges are meaningful only in a portfolio context, almost by definition.

Well as I said earlier in the thread this is a strategy I was considering for trying to catch swings and I would be running positions in multiple crosses so it would be a portfolio.

 

[Rhody Trader]

Well as I said earlier in the thread this is a strategy I was considering for trying to catch swings and I would be running positions in multiple crosses so it would be a portfolio.

Be careful about the multiple cross thing. It's pretty easy to end up with an exposure you weren't planning on. You could end up overly long or short a particular currency. You could do something like ending up with was is effectively a long EUR/JPY position by going long EUR/USD and long USD/JPY.

 

[scose-no-doubt]

jesus christ rhody, give me some credit.

 

[arabianights]

ur credit rating is subprime

 

[scose-no-doubt]

I know. Don't see why. MBS were AAA and I'd have to argue that I work at least as well as those.