213287 Resource 119235 120646 120646 1222260509442 1222260509442 Controlled Forex Trading Strategy: Alternative to Hedging

You don't always have to hedge to limit your losses

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">One of the popular ways for traders to cover themselves is through hedging. This is when you place an opposite order to offset a losing position. However, this doesn't always work well. </span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">For medium and long term currency trading, it can help to have an alternative to hedging. <a href="http://www.forexstrategysecrets.com/blog/an-alternative-to-hedging/" target="_blank" title="forex strategy, forex trading strategy, forex trading, currency trading, hedging, alternative hedging, Wayne Jackson, forex strategy secrets">Forex Strategy Secrets</a> describes a forex trading strategy developed by <a href="http://waynejacksonfx.blogspot.com/" target="_blank" title="forex strategy, forex trading strategy, forex trading, currency trading, hedging, alternative hedging, Wayne Jackson, forex strategy secrets">Wayne Jackson</a>:</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /></font><ol style="font-family: verdana,arial,helvetica,sans-serif;"><li><font size="2">Place a stop loss order on your position -- something of about 40 to 50 pips.</font></li><li><font size="2">Watch as the market goes against you.</font></li><li><font size="2">Allow the market to continue (perhaps your position loses between 30 and 100 pips).</font></li><li><font size="2">Put in an order for the same position as your stop loss position. Whether you are long or short, keep that position. This way you will benefit when the market turns around.</font></li><li><font size="2">As the market turns around, you are picked up and you ride the wave.</font></li></ol><font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">Obviously, as with any forex trading strategy, there are risks and this could totally backfire. But it is an interesting alternative to hedging, and could be useful for some traders.</span></font><br /> 9 application/xml false alternative hedging currency trading forex strategy forex strategy secrets forex trading forex trading strategy hedging Wayne Jackson Forex trading strategy ideas and information http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.1) Gecko/2008070206 Firefox/3.0.1 127.0.0.1 127.0.0.1 mmarquit 66.182.71.19 false true false false true 119235 blog blogsite/GFTForex/web