I got in to few sell positions of GOLD and realized its rallying up. Then I thought it could be short term so I let them be and opened buy positions thinking sort of a hedge. GOLD sell positions were swap paid ones so I wasn’t bothered a lot. Now my chart looks like below.
What alarms me is your use of the word “hedging”. The big banks hedge, we don’t, we don’t have to, we can be in and out and in and out with everything we have in 5 seconds.
There are no safe havens. Gold is definitely not a safe haven for private retail traders (or investors).
ofc it does. say u got in with the overall trend (up) on a pullback or breakout or whatever ur market aproach is. ur overall bias is to the upside, ur in profits, but price doesn t go up or down in a straight line. so when u anticipate a pullback u open a sell still keeping ur long open. when it finished retracing u closed the sell and keep the long. in case the sell isn t just a pullback and market looks like it wants to reverse completly then u keep the sell and get rid of the long. ofc this is in broad terms, and it implies u know when price it s most likely to pullback, or when wants to completly reverse. what tha t dude did isn t hedging at all. or u could hedge positions using corelation between currencies…again, it s a wide concept with lots of ins and outs, but if done properly, it could keepu into a position for months.
sadly most of the newbies do ■■■■ like that, when starting out, me included lol… u see something or read something, then u go on and start testing… sort of speak…and in my opinion are things like this that prolongue our learning curve cos we start out creating bad habits and chewing on misconceptions. by the time u start to learn a bit about the real market, u have to struggle now to unlearn all the crap and to get rid of the gambling mentality that comes with doing crap like this. this is 1 of the reasons that i don t believe in demos… even micro account is better then demo, cos it s always better and feels better to make a buck then to lose it. rant over
cheers
Sounds like you really didn’t have a solid plan. So that’s lesson #1.
Best thing to do is you sit down somewhere with beer or tea (whatever you like) and reflect upon this experience. How can you do better? How should you have traded this?
Been there, done that my friend. I was starting at -$50,000 loss before because I initially didn’t want to take a $100 loss. Thank goodness I closed the position before margin call. You better believe I learned a lot since!
it depends on what u want to do, i do scalp and swing trade sometimes the hole week if the oportunity arises. lately i ve been gettin in on the 1hr chart cos i didn t wanted to just sit and monitor every 5m candle, spread of the candle, volume associated with it, the hole background, etc etc… it takes a bit of work to scalp consistently atleast in what i m concerned. but then again u can enter on 5 or 15m for a better price or and a tighter stop, bank some profit and set BE if the volatility is there, and just ride it out and manage it on 1hr chart etc…kinda what i do in order to try and maximise profits.
cheers