Best Thread Live Cable Trading
marmoset
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Marm's a happy camper: long 60 (56+4) didn't work out, hedge short 50 went blah, so when cable finally went to b/e on the long, reversed and harumph :cheesy: OK, OK, nothing spectacular, only +17 +1: +18.
Right, crack a pint can of beer, hit the bed early. Shopping deprived me of my nap and I'm knackered beyond recognition. :|
This article IS gospel though. It's just that Marm is an eternal sinner
Rules
Right, crack a pint can of beer, hit the bed early. Shopping deprived me of my nap and I'm knackered beyond recognition. :|
This article IS gospel though. It's just that Marm is an eternal sinner
Rulesmarmoset said:Marm's a happy camper: long 60 (56+4) didn't work out, hedge short 50 went blah, so when cable finally went to b/e on the long, reversed and harumph :cheesy: OK, OK, nothing spectacular, only +17 +1: +18.
Right, crack a pint can of beer, hit the bed early. Shopping deprived me of my nap and I'm knackered beyond recognition. :|
This article IS gospel though. It's just that Marm is an eternal sinner
marmoset,
I don't understand this hedge thing. Do you lock in your losses or what?
Baruch said:
Marmoset
I would be interested to hear the theory on that. In my years of trading I've never known anyone hedge their trades using the same instrument on the same timeframe.
You could hedge a GBP spot by trading EUR spot or by GBP future for instance but I would be keen to learn your definition of a hedge.
The way I'm sure most see it is that by hedgeing a 60 long with a 50 short then what you have done is guarenteed a 10 point loss. I must be missing something so any explanation would be appreciated.
coolTrader
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GammaJammer said:
What walton news? was?
just saw it on the news!
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marmoset
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Ripcord said:
Hi Ripcord,
You're right, it's not a proper hedge, it's just that the checkbox on the order entry window is labeled "hedge". The proper definition would be "two way trade".
And yes, that particular move would have locked in a 10 pip loss. It's something I sometimes do in a quiet market when a particular move goes against my anticipated initial direction, on the theory that I can close out the losing position later on at b/e. Up till now I've had a 90% success rate with it. It's important to emphasize it only works in sideways markets, based on the observation that any price will be hit several times during the day. 8460 was hit 3x during Tokyo and then umpteen times before London opening. Even if I hadn't closed it out at the first possibility, I'd have simple added a limit at b/e and forgot about it.
Two way trading, again, works only in sideways markets. Soon as a trend starts, it's a recipe for disaster, as it induces the false security of "oh, I can always 'hedge' that losing position, it's not a real loss, I can make it back later *insert your own piece of denial here*".
What it does in a trending market is that it eats up your margin, you need to take ever bigger positions to 'hedge' the losers and be able to add to your account. And then on a fine day it's one of those skyrocketing 300 pip days and *bang* margin call after margin call and finally wipe-out.
That type of "take no losses" trading plain simply doesn't work if you don't have Soros' or Buffett's deep pockets and time horizons.
Do I see broad :cheesy: on today's major downturn?
hornblower
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hi dc
you have your long , still in place I see
never mind every point it comes up is one point less you are losing
and you may make up for it on your long on the dow
You are braver than me , I just trade what I see
good luck
Hornblower
edit nice run down down this morning for a few points
do you think it will run back up this pm
don`t know why I am asking you
cos you the one with the long
( only a bit of leg pulling )
H
you have your long , still in place I see
never mind every point it comes up is one point less you are losing
and you may make up for it on your long on the dow
You are braver than me , I just trade what I see
good luck
Hornblower
edit nice run down down this morning for a few points
do you think it will run back up this pm
don`t know why I am asking you
cos you the one with the long
( only a bit of leg pulling )
H
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Offshore Trader
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USD/JPY looks ready for a fall and it has been leading the market of late, so maybe we will see a rebound soon. Really missed out this morning as I had to watch my daughter swim and so had a limit in short cable at 8415. The gave back the profit with a limit buy at 8370. Damn!
