April 25 (Tue): Nikkei 225 vs. NY Dow (Note: For hedged positions, one-way is five times harder)

Good morning☀

There was a question about hedging, so sharing information?

Hedging

https://www.gogojungle.co.jp/finance/navi/articles/46027

We have explained hedging before, so please also check this article, m(_ _"m)

Today, why is that hedging so difficult in one directionfive times?

Strictly speaking「five times」is not necessarily the case.

It’s about how hard it is, roughly speaking.

When deciding the Lot, you determine the maximum allowable loss from the stop-loss,

(※The basics of this area are explained elsewhere, so omitted)

Since you need to do this for both long and short, at this stage even a simple calculation would involvetwo times.

Also, consider that the overlapping part of the opposite position (since you don’t enter the same amount for hedging) offsets each other. Therefore risk is reduced. With this in mind,about three times... lol

Also, if you make a mistake in exiting hedging, both positions can end up negative, which would be a foolish result?

Mastering how to exit hedging makes you a professional.

Therefore, when considering exits for both long and short, it further becomesfour times to think about.

Also, since you may adjust position weights and repeatedly enter and exit,5x…6x… the difficulty keeps doubling.

That’s why I basically work with only one stock—the reason is as described?

My head can’t keep up?

“Ignorance is the basis for a big injury”

In a certain salon, the host saidthat hedging basics were not even taught, yet they casually

“It’s okay to hedge, you know”

and some beginners believed it and suffered big losses, crying to me?

Of course it’s the individual's responsibility, but it’s absolutely wrong for a teacher to say something so reckless, right?‍♂️

“Ignorance is the basis for a big injury”

This applies to any technical field.

In another salon,

“Just lightly learn Elliott Wave”

and instructed?

How could one speak so lightly about such a difficult principle?

What kind of thinking leads to such reckless statements?

Of course that salon still spreads incorrect Elliott Wave (pseudo Elliott Wave) even now?

I have been studying Elliott Wave for about eight years? nine years this year.

There are still many things I don’t understand, counts I can’t do well?

Isn’t it irresponsible to say you can just study it lightly?

If you use “ignorance,” you’re better off not knowing.

Instead of dabbling in many things, go deep into one thing.

And truly understand it.

This is what I always nag about, isn’t it lol

To keep earning in the market, that’s what it means, right?

(※From here, it is limited to members.)