Thread: Coverage (Hedging)

Welcome to the University of Pain. We all went through there. The important thing is that you don’t repeat the course. Learn and advance.

What if I just close everything, I take the loss and start from zero with my head? I’m tempted more than just keep seeing negative floating every day. I know it sounds like surrendering, but psychologically I’m already exhausted.

If you are already mentally worn out, going out and assuming loss can be the best thing. Trading is not torture, it is rational decision making. Closing, resting and getting stronger is also part of the game.

I don't know if the hedge was worse or the fact that I did it without knowing how to get out later. It was a desperate reaction. But, well, if something I learned, it's that I never get in without stop loss anymore.

Unplanned hedging is just another way to beg the market, and the market doesn't listen to pleas, better to lose a battle with dignity than to die trapped in your own mess.

I am studying the levels of support and endurance to see if I can take advantage of a strong rebound and close one of the positions. If someone has experience coming out of coverage with technical analysis, ideas are appreciated.

Use larger temporalities to identify key areas. There you can close the winning side and see if the other one recovers. Just make sure you don't act on impulses. Everything with logic and coldness.

Every day I leave this open, it generates more negative swap. I don’t know if the hedge is saving me or it’s killing me slowly. Is it worth keeping it for so many days or better cut it off as soon as possible?

If the swap is too high, you're losing by dripping. Don't let that sink you further. Evaluate well if keeping it makes up for wear. Sometimes, the cost of waiting is higher than that of assuming.

I'm thinking of turning coverage into a planned grid. lt's risky, I know, but at least it would have a structure.