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I am trapped journal.

Discussion in 'Personal Trade Journals' started by arhemsi, Oct 23, 2009.

  1. arhemsi

    arhemsi Recruit

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    I am trapped journal is exactly that for I am trapped in a hedge position.
    I have a buy of GU at 1.6707 and a sell at 1.6245.

    This journal will document my struggle to break free of this hedge while at the same time maintaining the account balance which is currently at $1558...

    Of course I welcome any advice along the way.

    gu.
     
  2. Pharaoh

    Pharaoh Colonel

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    I hope your broker doesn't charge large swap or maintenance fees. Also, some brokers are very helpful and will close 1/2 of your hedge as soon as the market gains momentum to make the other 1/2 likely to result in a margin call.

    Your best bet is to wait for price to bounce off some resistance or support and close the half that's disfavored by the new price momentum. Of course, a sudden reversal at that point will do very bad things to you.

    Good luck.
     
  3. pahj

    pahj Private, 1st Class

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    your position if i may understand is a pending order, which i think from the close of market Friday has not been triggered. except it is a position you have taken long ago, if actually it has not been triggered you can exit the buy order since the trend has changed to short, you can give a clearer picture of your position so one can understand it well and know what to advice. thanks
     
    #3 pahj, Oct 24, 2009
    Last edited: Oct 24, 2009
  4. Nev

    Nev Recruit

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    My biggest hedge was 200 pips on G/J, having not heard for you I'm assuming you met the same outcome - new account time. Try as you might it's almost impossible to have price action come in profit of an extreme low AND high like that unless you wait months. The dual trade direction works in a range bound market but as soon as you're forced to place defensive trades without stop losses at either end of the channel you're going to end up in hell. Those entries are just gonna keep getting wider and wider, guessing what lead you to this. In these situations your best bet is to cut one side as soon as you find a good retracing event, and occassionally it's possible to scalp your way out or even just trading as if the hedge wasn't there between the trades until you have enough equity to close one. I.e. make enough money to tank the loss of one side. I'm currently sitting at -8 after a terrible 55 trades totalling +~67.38 pips at the expense of ~76.14 pips due to impulsive bi-directional scalps. Apart from two news trades with the help of felix's free signals, these were trades I was never meant to be in. After you get out of this mess do yourself a favour - don't mindlessly scalp without a good reason and good risk to reward ratio, and NEVER scalp in both directions. Use a stoploss instead. Better to take a small loss and be out of a trade you shouldn't have been in than get lucky with ridiculously bad entries before one loss takes out 50% of your equity. You're not a bank or hedge fund prepared run 50% of their account (do they even do that) for a position/carry trade. Even if random scalping between the lines works sometimes, it has a higher probability landing you in negative pips and a world of pain. Remember you're gonna be around 3 pips short with spread, sometimes more, that means you're gonna need a movement of at least 3 in your favour before you've BROKEN EVEN. If you play a 10 pip S/R zone say 50-61 price having visited it from a high several times and you enter long at 53 thinking you picked out great recent 50 support zone you're gonna need price action to lift it to 54 to at least break even. Resistance kicking in at 57-60 will give you 3 pips of grace - against a potential direct run-through down to 38, 20 or even 10 costing you 20-30 pips. Turning that scalp into a medium-indefinitely long term trade is about as smart as turning a trade into an investment. You'll either get lucky or die.

    Aim a short term trade with an appropriate reason (get your directional bias from news/economic sentiment & momentum including fundamental drivers gold oil equity cot reports usdx options volatility) and an appropriate entry (pick a decent s/r level based on fibs/psych levels, daily/weekly s/r) and realistic target (even a consistent 5-10 pips can get you by if you're not confident about 150 pip targets); if it gets knocked out, too bad, your reasons for entry weren't good enough or you just got unlucky. This has been learnt with hard earned $3.5k of real money please take the advice. Only recently have I actually managed to finish days consistently with +ve pips when I stick to the plan and don't succumb to the temptation of screwing around scalping.
     
    #4 Nev, Dec 3, 2009
    Last edited: Dec 3, 2009
  5. Mikin Smith

    Mikin Smith Recruit

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    Re:I am trapped journal

    Thanks for sharing....your plan was good...try to unstrung it...
     
  6. bartrab

    bartrab Recruit

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    Terrible news, but I'm sure you're plan will pull you to safety

    Good luck!
     

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