Friday, August 28, 2009

Why I still prefer hedging...

Most of you might heard terms called Hedge Fund. I like the word 'hedge'. I have been testing a lot of methods and try to beat the market. The result is not very promising. I believe most of the hedge fund manager strategies and philosophy: "You will never get right all the time!, Mr. Market is always right!". Finally, I go back to my most powerful method which suit my style. In my previous article, I wrote about trading Forex is based on personal style and I strongly prove the statement is 100% right after I went through lot of experiments.
When you trade Forex Market, you must feel comfortable after you place your trade. Once you start to feel worry, your portfolio will start to screw up. You will be making mistake again and again. Few major mistakes will make you feel uneasy and your brain start to malfunction. I advise you to stop immediately and take a rest at least for a day.
Well, I feel very comfortable when I hedge my position, I don't have to worry where the market is heading. I can go out and have a cup of Cappuccino at Starbucks and chat with my business partners on other deals. I don't have to stare at the monitor for the whole day. I only check my position once or twice a day. If I go for vacation, I can hedge it for a longer term or just close all my positions. The most beatiful things is; the return is much higher if compare to I sit infront of the screen. That is my style of trading. Who say you cannot sleep well if you trade Forex?
 
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