Nominate WTF post of year

God yeah I'd forgotten about that. 'Hedging' threads normally make me cross but that was just almost too funny
 
elitejets said:
Did you even google that? He was trying to help you. Thats a wind in the Middle East, he meant to hint that they were middle eastern buyers of USDJPY.
Click to expand...

i googled it but didn't get it...

n'aschi just went in one ear and came straight out the other
 
There was one a while back where a guy had an idea for a strategy, whereby he would trade with a partner, only one of them would be a long-only trader, and the other would be short-only in the same market; that way they would be 'hedging' each other's positions, thus making it a safer trade,

'if you wanted to go long and you knew the other guy was short, you could stay in it for longer...' was along the lines of his reasoning. Smart chap.
 
Strategy diversification isn't necessarily a bad thing. It's just the self delusion about the P+L effects of market moves when someone holds 'simultaneous long / short positions' that is retarded. It's a mental crutch, nothing more. If you admit as much then fine, it's all these no brain numpties trying to claim they're inventing something new when they do it that is plain daft.
 
Don't underestimate mental crutches; I often "hedge" a position I know that is right but I also know is about to go against me by putting the opposite trade in an other month... at best I'm just legging a calendar spread stupidly... but it seems to work :)
 
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arabianights said:
Don't underestimate mental crutches; I often "hedge" a position I know that is right but I also know is about to go against me by putting the opposite trade in an other month... at best I'm just legging a calendar spread stupidly... but it seems to work :)
Click to expand...


That's not a mental crutch, and it's not 'hedging' it's hedging. I.e. proper hedging. No issue with that whatsoever. Why another month though - and which month do you choose? Something liquid? Or are you saying you choose some cr@p, illiquid back date just so you don't have to say you actually closed your trade out.

If so, maybe it is a crutch.
 
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