What is a trade that doesn’t make your heart race?
When you trade,
“Will it rise like this…?”
“What if it suddenly falls…?”
“Should I settle now…?”
there are times when you become concerned about price movements in that way.
Every time you look at the chart, your heart races,
and your judgments change just because the market moves a little.
So, how can you trade in a way that is less influenced by market fluctuations?
What I value is
not only “trying to predict market movements,”
but also preemptively thinking, “if this happens, I will do this.”
One of the ideas I incorporate is
a strategy trade using hedging (bifurcated positions).
? Hedging strategy, video explanation here?
https://www.gogojungle.co.jp/watch/2092
Why do trades make us nervous?
In trading, your own money is at stake.
Therefore,
“I don’t want to miss out on profits,”
“I don’t want to incur losses,”
it’s not unusual for these feelings to arise.
The problem is that these emotions can change the actions you originally planned.
You buy hastily because the market rose.
You decide to settle because it fell and you became scared.
And right after you settle, it moves in the opposite direction again.
If that happens, you end up chasing the market’s moves continuously.
Think about “responses” as well as “predictions”
Of course, analyzing the market is important.
No matter how much you analyze, you can’t completely determine future price movements.
So I,
“think it will rise”
is not enough; you also consider
“What will I do if it rises?”
“What will I do if it falls?”
this is what I value.
In other words,
“If this happens, do this.”
.
If you think ahead about how to respond, when the market actually moves, you won’t have to decide everything on the spot just by watching price movement; you can judge more easily by following the pre-considered strategy.
Then the concept of “hedging”
When you hear hedging,
the image is probably “holding both a long and a short at the same time.”
However, what I consider important is not hedging itself.
What matters is how you use hedging within your strategy.
It’s important to consider the next steps, even if the market moves in a direction you didn’t expect.
As one method for that, I use hedging.
? Detailed information on hedging strategy here
https://www.gogojungle.co.jp/watch/2092