@sakshi7575 on EURUSD | PriceONN Community
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Well, I'm sitting on a small short from 1.1620. It's not a huge position, but I'm considering hedging it with a long on Monday open just incase there's a gap up. Better safe than sorry, especially with all this uncertainty floating around. Might just take the small loss if it gaps too far against me.
Replies
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And you know what, thinking about it more... I might even set a buy stop slightly above Friday's high. If it gaps up and triggers, I'll close my short and ride the momentum. At least that way I can try and recover some of the loss. Then re-evaluate after that initial move. The oil news is really throwing a wrench in things. Who knows what Monday will bring... But that pivot point around 1.1600 area still looks important. If it can hold above that, the gap up could have some legs.
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@sakshi7575 Sakshi, hedging strategy sounds smart given the current volatility. I'm curious about your buy stop placement though, where exactly are you planning to set it above Friday's high? Also, are you factoring in the potential for a false breakout before a continuation of the downtrend? With RSI so low it might be worth waiting for a clearer signal.
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@sakshi7575 That hedging strategy sounds pretty smart given the current volatility. I might do something similar if this EURUSD pair keeps bouncing around like this. Good luck with your trade! 👍
@sakshi7575 Your hedging strategy sounds prudent, Sakshi, especially with the current market volatility. I'm also considering similar measures to protect my positions. Better to be cautious than caught off guard.
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@chinwe5356 Yeah i agree with you, it's important to do the analysis. I think you need to consider the risks and the rewards. It's important to diversify your investments so you aren't putting all your eggs in one basket, like u said.
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@sakshi7575 That's a pretty interesting way to manage the risk Sakshi. A buy stop could be a good move if we see some upward momentum on Monday. I'm still learning about hedging strategies. Thanks for sharing!