Perhaps even-handed trading might be the strongest contender
Actually, is the hedging method the strongest in FX?
Originally I am a true discretionary trader.
At first I wasn't interested in hedged trades,
but once I tried it out, I realized how huge the potential was.
Hedged trading means
placing buy orders and sell orders at the same time.
Because you’re betting on both sides,
whether it goes up or down, one of the positions will be profitable.
With every trade you can lock in profits reliably, and as the counts accumulate,
it feels very fulfilling to trade (laughs).
After all, when you trade, you want to end with profits.
Since hedged trades bet on both directions,
you can settle every time in positive territory.
That’s why there’s a strange sense of security.
Of course, among the two positions,
the other side becomes negative,
but depending on how you do it, you can erase this negative.
You can erase about 50%–80%.
Then, to the wonder,
the profit portion remains intact.
In reality, it’s the difference between net positive profit and net negative loss that grows little by little each time.
Like this, at first it might still seem meaningless when you hear it.
“Can you really profit by placing both sell and buy orders?”
So in this article,
I’d like to explain this hedged trading that actually yields profits.
■ The Encounter with Hedging
I have always
based my discretionary trading on “environment recognition” and “price action.”
If you understand environment recognition and price action,
most price movements in FX can be explained.
Tools like signal tools or gimmicky methods are fine, but
if you don’t understand the mechanism of how the market moves, you won’t get results.
At first, I relied on sold tools and popular教材,
and didn’t study the fundamental market dynamics (environment recognition and price action).
That’s why I couldn’t win.
After realizing this, FX started to become incredibly easy to win.
In the end, the key was environment recognition and price action.
So, based on overcoming the obstacles I faced,
I teach my students the fundamental market mechanism (environment recognition and price action) from the ground up.
In fact, students who learned the market mechanism from me are starting to win in FX similarly.
To put it like math,
if you can’t do addition and subtraction, you can’t do multiplication or division either.
FX is the same, I think.
Since you trade with charts, understanding how price moves is something you should learn first.
Skipping that and buying tools or automated systems or gimmick教材 won’t make you win, that’s my argument.
So,
the basics are still to learn “environment recognition + price action,”
and I still believe understanding the market’s mechanics is the royal road to FX mastery.
However, hedged trading has a special exception,
there are some “slightly special circumstances.”
Even if you don’t know the market’s mechanism,
it’s relatively easy for beginners to win.
In the FX world, the category of “hedging” is like an isolated island apart from others.
Because the fundamental approach to charts is different,
even looking at the same chart, your perception is completely different.
Whether price will go up or down is
irrelevant.
What matters is how much you add to long or short positions relative to movement.
You adjust position sizes like that.
Unlike discretionary trading, where you forecast upward movement and profit if right,
hedging is fundamentally different.
For hedgers, the ups and downs of the chart are just symbols.
Whether it’s east or west is irrelevant.
There’s no inherent meaning to direction.
You simply take the positions that align with the chart.
It’s an extremely mechanical process.
But because the steps are fixed,
anyone can achieve similar results.
Although it’s not the market principles like “environment recognition + price action,”
as a means to make money, hedged trading also has its own appeal.
There’s profit on every trade,
(though it also depends on how much you can limit losses on the opposite position),
and for those who want to steadily grow their money a little every day, it might be a good method.
Learning the market’s mechanism (environment recognition and price action) is the core FX basics,
but for those who can’t or who aren’t succeeding with current methods,
hedged trading is one option to try.
Even those not currently earning much might find this easier to earn with.
So,
if you’re interested in future hedging strategies I’ll publish,press the portrait icon on this page to register (follow) my Investment Navigator+.
You’ll be able to check the next updates without missing them!
Next time, I’ll reveal one hedging trading method.
I’ll explain part of the method in a video by GogoJungle!
Don't miss the stream!
Sato