Comments on: No More “Hedging” for Forex Traders http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/ Information and resources for those looking to learn about trading and the markets Sat, 04 Feb 2012 14:17:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Conspiracies, Regulations, and Trader Paranoia | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-19349 Conspiracies, Regulations, and Trader Paranoia | The Essentials of Trading Tue, 31 Jan 2012 17:10:15 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-19349 [...] week I posted No More “Hedging” for Forex Traders to discuss the pending NFA rule which effectively ends the process of “hedging” in [...] [...] week I posted No More “Hedging” for Forex Traders to discuss the pending NFA rule which effectively ends the process of “hedging” in [...]

]]> By: Forex “Hedging” Continued | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-19347 Forex “Hedging” Continued | The Essentials of Trading Tue, 31 Jan 2012 17:04:03 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-19347 [...] yesterday’s No More “Hedging” for Forex Traders post I pointed out a new rule from the NFA going into effect on May 15th which effectively [...] [...] yesterday’s No More “Hedging” for Forex Traders post I pointed out a new rule from the NFA going into effect on May 15th which effectively [...]

]]> By: New NFA Rule Impacts More Than Just Forex Hedging | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-19346 New NFA Rule Impacts More Than Just Forex Hedging | The Essentials of Trading Tue, 31 Jan 2012 17:00:29 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-19346 [...] couple of weeks ago I posted on the new NFA rule which effectively bans the practice of “hedging” in the retail forex market. There’s been considerable discussion on the subject of hedging and [...] [...] couple of weeks ago I posted on the new NFA rule which effectively bans the practice of “hedging” in the retail forex market. There’s been considerable discussion on the subject of hedging and [...]

]]> By: Increasing Regulation of Retail Forex Trading | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-16118 Increasing Regulation of Retail Forex Trading | The Essentials of Trading Thu, 14 Jan 2010 13:42:35 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-16118 [...] retail forex trading. For those who have been following along with developments over the last year (No More “Hedging” for Forex Traders, New NFA Rule Impacts More Than Just Forex Hedging, New NFA Retail Forex Leverage Restrictions) [...] [...] retail forex trading. For those who have been following along with developments over the last year (No More “Hedging” for Forex Traders, New NFA Rule Impacts More Than Just Forex Hedging, New NFA Retail Forex Leverage Restrictions) [...]

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-15185 John Mon, 26 Oct 2009 17:17:23 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-15185 Everyone's friends at the NFA are back in action: <a href="http://www.theessentialsoftrading.com/Blog/index.php/2009/10/26/new-nfa-retail-forex-leverage-restrictions/" rel="nofollow">New NFA Retail Forex Leverage Restrictions</a> Everyone’s friends at the NFA are back in action: New NFA Retail Forex Leverage Restrictions

]]> By: Book Review: Essentials of Foreign Exchange Trading | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-14990 Book Review: Essentials of Foreign Exchange Trading | The Essentials of Trading Mon, 12 Oct 2009 11:02:40 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-14990 [...] a broker). The book was written prior to the NFA’s rules in opposition to this practice (see No more hedging for forex traders), but that is only for US brokers. Those in other countries can still employ “hedging”, [...] [...] a broker). The book was written prior to the NFA’s rules in opposition to this practice (see No more hedging for forex traders), but that is only for US brokers. Those in other countries can still employ “hedging”, [...]

]]> By: Rhody Trader» Hit the 1000 comment milestone http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-14799 Rhody Trader» Hit the 1000 comment milestone Tue, 15 Sep 2009 13:24:15 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-14799 [...] bit below 2 comments per entry. Admittedly, a huge chunk of the comments came from one post – No More “Hedging” for Forex Traders. That discussion of the NFA rules against carrying offsetting positions accounts for about a [...] [...] bit below 2 comments per entry. Admittedly, a huge chunk of the comments came from one post – No More “Hedging” for Forex Traders. That discussion of the NFA rules against carrying offsetting positions accounts for about a [...]

]]> By: Marjorie Miller http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-14650 Marjorie Miller Tue, 04 Aug 2009 17:33:45 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-14650 I do like your comparison between "I lost" and "I'm down" though... With "I'm down", you're not out. Also, I like watching the numbers go up and down. Indeed, a couple of months ago I took some advice on Gold and got into a bad sell at $918. It went way up. Hedged at $951. And I pondered as I watched the numbers changed before my eyes in a safe hedge. Each day I would spend time with my hedged gold trades, getting to know them and their quirks. Then one day it happened. I woke up, and Gold had gone down to $904. Both of my sell hedges were in like $200 profit. So I took profit on the sells. Then I put an additional $500 in to cover what I saw as the possible margin risk of unhedging 2 minilots of a $1000 account. Then like the rubber(band) returning to it's unstretched state, or perhaps stretched in this case, ;), Gold returned to $954 and more...I pulled out of both unhedged buys at $945, and returned a modest profit with no loss. It cost me $4 in swaps fees, for two months of fun!!! :D!!! :)!!! Watching a hedge is better than TV sometimes...many things can be learned about the numerical ramifications and graph characteristics by watching a hedge, even if you don't want to do hedge trading in the long run. :). And this I say unto you. :). So, yes for too months, I had a big ego because I was trading Gold but I really wasn't. So what's wrong with that? I call that safe sex. :). And then I made a profit. :). I'm going to get 8 Zulutrade accounts. Then I will become a signal trader provider... Octopussy :O I do like your comparison between “I lost” and “I’m down” though…

With “I’m down”, you’re not out. Also, I like watching the numbers go up and down. Indeed, a couple of months ago I took some advice on Gold and got into a bad sell at $918. It went way up. Hedged at $951. And I pondered as I watched the numbers changed before my eyes in a safe hedge. Each day I would spend time with my hedged gold trades, getting to know them and their quirks.

Then one day it happened. I woke up, and Gold had gone down to $904. Both of my sell hedges were in like $200 profit. So I took profit on the sells. Then I put an additional $500 in to cover what I saw as the possible margin risk of unhedging 2 minilots of a $1000 account.

Then like the rubber(band) returning to it’s unstretched state, or perhaps stretched in this case, ;) , Gold returned to $954 and more…I pulled out of both unhedged buys at $945, and returned a modest profit with no loss. It cost me $4 in swaps fees, for two months of fun!!! :D !!! :) !!! Watching a hedge is better than TV sometimes…many things can be learned about the numerical ramifications and graph characteristics by watching a hedge, even if you don’t want to do hedge trading in the long run. :) .

And this I say unto you. :) .

So, yes for too months, I had a big ego because I was trading Gold but I really wasn’t. So what’s wrong with that? I call that safe sex. :) . And then I made a profit. :) .

I’m going to get 8 Zulutrade accounts. Then I will become a signal trader provider…

Octopussy :O

]]> By: Marjorie Miller http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-14649 Marjorie Miller Tue, 04 Aug 2009 17:08:31 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-14649 John - In short: Commutative Property: a + b = b + a In long: "In mathematics, commutativity is the property that changing the order of something does not change the end result. It is a fundamental property of many binary operations, and many mathematical proofs depend on it. The commutativity of simple operations, such as multiplication and addition of numbers, was for many years implicitly assumed and the property was not named until the 19th century when mathematicians began to formalize the theory of mathematics." ref - http://en.wikipedia.org/wiki/Commutativity Professor Miller This I do Profess John –

In short: Commutative Property: a + b = b + a

In long: “In mathematics, commutativity is the property that changing the order of something does not change the end result. It is a fundamental property of many binary operations, and many mathematical proofs depend on it. The commutativity of simple operations, such as multiplication and addition of numbers, was for many years implicitly assumed and the property was not named until the 19th century when mathematicians began to formalize the theory of mathematics.”

ref – http://en.wikipedia.org/wiki/Commutativity

Professor Miller
This I do Profess

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2009/04/14/no-more-hedging-for-forex-traders/#comment-14648 John Tue, 04 Aug 2009 16:52:50 +0000 http://www.theessentialsoftrading.com/Blog/?p=1169#comment-14648 Marjorie - You go from supporting the cummulative property to overlooking it. Multiple trading signals certainly fall into the cummulative properly discussion as your performance is nothing but the aggregate of all the trades you do. If you have three systems running on 3 accounts the outcome must be the same if you have three systems running on one account (assuming sufficient margin) given the same trade executions. As for fragile trader psychology, since an exit order does the same thing as a hedge order to protect one's account, I see no reason why one should cause a lack of sleep and the other not. Is it perhaps a question of "I lost.." vs. "I'm down.."? Marjorie – You go from supporting the cummulative property to overlooking it. Multiple trading signals certainly fall into the cummulative properly discussion as your performance is nothing but the aggregate of all the trades you do. If you have three systems running on 3 accounts the outcome must be the same if you have three systems running on one account (assuming sufficient margin) given the same trade executions.

As for fragile trader psychology, since an exit order does the same thing as a hedge order to protect one’s account, I see no reason why one should cause a lack of sleep and the other not. Is it perhaps a question of “I lost..” vs. “I’m down..”?

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