Hi,
I am new to forex…i made amistake and now i am worried about it.
i did 2 buy at 156.14 and 156.28 in GBPJPY currency. i got struick up in breakout and expecting a u turn…
finally the loss went to -3800 dollars…
i did 2 lots of hedging there at 154.51 and 154.55.
now my current loss is 3800 and its running…
now i am very much confused and worried about how and when to close thes 4 position without loss…
my account is critical stage…kindly help me…
Aariff
Unfortunately, while you’ve got that hedge on you can’t accomplish anything. All you’ve done is lock in your loss and prevent yourself from benefiting from the rebound. You have to decide what you think the next direction for GBP/JPY is from here and take off the opposing part of your hedge - or just get out all together to avoid potential further damage. The latter is likely your better choice, in fact. Get out. Stop the live money trading until you have a better handle on things, then come back again later. If you don’t, chances are you’re going to end up losing even more.
ya. You’re pretty much screwed. There’s probably not any way to salvage your account. You just used too large of a position and didn’t understand the market well enough to warrant it.
I know it sucks, but think of it as the best learning experience you can have. Because I can pretty much guarantee that you won’t let this sort of thing happen to you again.
Looking at the monthly chart, the GBPJPY now, is in the lower part of the chart since 1988 till today.
In theorie, you should hope it will go down at this point in time and ketch your 154.xx hedge to brake even or small profit, then come back moving up and ketch your original trade.
That would be probably way too much luck.
The overall future of the chart looks Long, not Short.
When? if I know that I would be the “holy grail” and everybody would hunt me. 
Worst scenario, close them all and start fresh and you have learned your first lesson, DO NOT TRADE WITH TOO MUCH OF YOUR MONEY, learn first the basics, start small, micro account and learn, then move up to bigger and better things.
2% of your total capital or less, especially in the learning phase.
You are in a pickle, Sorry
Darn, my advise is the most hopeful one of all the answers but is just as bleak as the others.
I do think the long you could ketch 156.xx with waiting, but the hedge 154.xx you have to scratch most likely as a loss.
If you don’t know why you are in the market, get out!
i would put that down as a �3800 lesson my freind
Thanks all for your reply.
Closing the position will make my account 50% loss in my capital.
by hedgin i have arrested my loss/profit…
i am planning to hold all the position and clear it when it comes to its rate. meantime to get that money back by trading.
but i am not clear about the trend now. if i clear my hedged one? how possible i can trust that it would go back to my buy range.
god save me please
Aariff
If your account “is critical stage” with 4 positions in GBP/JPY on at 2:2 hedged, I don’t need to tell you that the percentage of available margin used on the first 2 positions opened you up to significant risk. In all kindness, pursue further education about managing risk through sound money management before putting real money on the line again.
As for the current predicament: pick a side (long, short) or close everything out, as mentioned. We can’t (or shouldn’t) forecast market direction for you, and besides, maintaining either side of your trade in your account’s current state sounds highly risky. Much as I hate to say it, the most prudent choice is to close everything. Anyone can understand your desire to make it back, but if you guess wrong on direction, you may put yourself in a call.
Hedging arrested loss/profit, but there’s no solution: one way or another, you’re going to sustain a loss. The only hope you have is to recover that loss with appreciation on the position you leave intact. But that’s a dangerous game psychologically, especially if your explicit goal is to “make up what you lost”.
You can place trades on other pairs, etc. to “make back” what you’ll lose on the hedge, but that again is a motive to be very wary of as you trade.
If you “clear your hedged” one, you cant trust “that it would go back to my buy range”. The trend is up, etc., but how much of a further drawdown can you sustain if ~150 pips put your account “in critical stage”? Enough to ride out price until it returns to that point, if/when it ever does? Too many “what ifs” and poorly-defined, ill-advised risks. -$3800 realized sounds terrible, I know, but some very real alternatives before you - believe it or not - are much worse.
Thanks Andrew for your valuable suggestion.
Yes now i am on “Make Back” policy only.
i am trading in different currency pair to get back my capital.
i have strategy in my mind, i guess you can suggest me to do better.
i have buy rate at 156.28 and 156.14 and hedged sell at 154.51 and 154.55
now i feel if the market goes down below my sell hedged rate. i will wait till the market get bullish signal and i will close the sell orders in profit and i may travel allong with bulls for quite long and book profit, if i get profit and close it when i get bearish signal and hedging again with 2 lots of sell at that position.
Vice versa if it goes above my buy rate.
sounds weird but i dont have any other option rather making money from this market.
atleast i should minise the losses rather than taking the whole of -3800$.
Kindly suggest me whether this idea help.
can i get support and resistance level of GBPJPY for today?
Aariff
well i gotta give you credit for dreaming!!!
unfortunatly policys only work before we enter the market, because let me tell you if you try fighting the market ESPECIALLY forex you will lose
you need to forget about that lose if you want want any kind of a future in forex
you clearly was leveradging your account to much to lose 50% in 1 day, you have no money managment, nor stratergy
untill you have these 2 KEY things in mind and a plan you might aswell forget becasue even if you did for some small miracle of a chance make your position good you will have learned nothing and you will repeat your mistake’s again and again
get over your lose and start showing the market and traders some respect by learning about it.
Hi Trev,
I agree with your points.
I used to make stoploss but that was getting hit most of the time and then it achieved my target where i was out and i was just seeing. so i didn’t keep SL for this trade…very bad of me.
i was following strategy and it was helping me to get some profits. same strategy failed during US market hours and i got struck in breakout. before i realise the price went somewhere and waited for it to come back and now i am worrying for not doing the same.
Aariff
well all i can say is you need to change your stratergy not your saftey nettings
the worst possible thing you can do is head into forex without stop losses
especially when you have not really made any money in forex
you need to cut the crap stop worrying about the loss and start again with a fresh mind
learn from your mistakes but you also need to get over them and enter back in the market with a positive stratergy and mind set
the market does not owe you anything you need to understand that point
i like losses because with my stratergy every loss is closer to a win, with the right R/R your bank manger will be your best freind
Thanks Trev,
I cannot say anything about strategy.
it works this way,
in a trend, if you get an opposite side candle and which close above half of the previous candle and RSI and Sochastic crossover (below 25 for going long and above 75 for going short). chart to be looked is 1H. this works for GBPJPY. read this strategy somewhere.
everything signal was met…then also it happened in unexpected way.
if you dont mind can i get ur strategy?
Aariff
Only advice I can give is to trade mini lots if you have a $10K account, micro lots if you have anything less. I wouldnt consider trading whole lots unless I have $100K or more account size.
Hi Aariff,
I looked at the chart this morning and it is just moving between all of your orders.
Open your chart, switch MN (monthly) zoom out all the way and look for yourself how good your chances are of getting it all back. IBFX chart went back to 1988. Over time your 156.xx has a good chance to be triggered, the 154.xx is a different story.
Actually you did not hedge, what you did where 4 bad orders. Sorry.
Strategies work many times but they also fail.
You’re not hearing what we’re telling you. There is no loss minimizing. You’ve already lost the $3800. By doing your “hedge” you locked it in. Full stop. If you do this “if the market goes down below my sell hedged rate. i will wait till the market get bullish signal and i will close the sell orders in profit” then every dollar your short gains becomes a dollar your long has lost. Your long would still have to make back $3800 for you to get back to break-even.
Read this and understand it well: [B]THERE IS NO BENEFIT TO “HEDGING”.[/B] It isn’t going to help you at all, in any way. In fact, it’s only going to be a drag on your performance because of the added transaction and carry costs.
Accept the loss and either go back to demo trading until you’ve got a proven strategy or focus on slowly working your way back by making good trades.
I wish we would use the correct terms (if that exists). But somebody or some people put some names down for different things when trading was established. So somebody or some people decided on certain terms for certain things.
Call a BUY to the Up LONG and call a BUY to the Down SHORT.
In his case, he never hedged, he just traded bad.
An other strategy to trade, don’t trade xxx.JPY because you start with [B]156[/B].xx. Trading with [B]1[/B].xxxx currency’s $ goes further.