Hedging versus Using a Stop Loss! ☝️

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Hedging vs Stop Loss - Which is Better. Hedging vs Stop Loss. Is hedging a losing position a good idea? Hedging versus using a stop loss. Is hedging a better alternative to using a stop loss? Say you're wrong, market moves up - you want to lock some gains so you move the stop loss up to lock in the profit (stop the market reversing on us) - market comes back, just pings us out and carries on. Is a stop the right thing to do? OK.
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[@ukspreadbetting]

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[@cristinadacunha6421]

You need( 1.) A choppy market ( 2. ) a large account (2.) Control of your emotions to take profit and enter at right time several times.

[@darthrosh5223]

If I did this.. I'd get screwed on both ends 🤣

[@jordiros5723]

Yes, the key idea is that the mind is resistant to change and hedging works around the mind's natural inertia so that you can ride the ups and down instead of getting shaken out prematurely.

[@tthedon2471]

hmmm sounds good, at least in theory. how about going long and short on the same trade at the same time? ok, it's a zero sum game. but one then exits the profitable trade, let the other trade come back, and then enter its opposite trade again. any thoughts?

[@madhu7786]

Hedging is better than stoploss But it will restrict the profit and not useful during uptrend.. It very good during violatile N. It reduces the maximum loss... Thanks

[@nayanmipun6784]

Hedging works when the trend returns to the hedged Long Short positions but if the trend doesn't return to the hedged Long Short entries there would be loss of the opposite position

[@KKKkiri]

This seem all fine and stuff, but I found out I remain stuck between two hedging positions over a period of time. It works like a charm the first month when you buy and sell at the same time but then....the gap grows and grows...you always have to have one position free to make trades and when you're stuck between sell and buy (in the middle) it can take months for it to escape and close the losing trade in profit, exceeding the swap fees. So yeah...it only buys you time in theory, but doesn't make you efficient. I found myself stuck on spikes the market maker does.

[@lazziebardakos2956]

What I've found is that more often than not, if you look at two markets that strongly correlate and the go out of correlation, the opposite happens. The weaker one either will move more to get back into correlation or the stronger one starts losing more ground and go back into correlation. I have a strategy based in this theory that does quite well.

[@Mr8perezm]

Never works for me, I always end up losing even more money. One thing to note it may keeping the position open for days and then needing to swap/interest fees on CFDs which adds to the difficulty of making profit on the trade

[@avenue4313]

It never works do not know why people believe in this strategy

[@judefernando1698]

Make sense!! Thanks for sharing!

[@Peteristrate]

You say there's a psychological implication that makes you think you're not losing and it's easier to bid more further, in the end making a little bit of profit. But how about all those daily fees that you need to pay over that long period - you're more likely to lose all that bit of profit you're making this way.

[@abishekraju2988]

Mark, important to get the hedging ratio correct, considering the implied Vol of the 2 instruments. Maybe you can do a video on that: Calculating the hedging ratio for couple of instruments with different implied Vols’

[@yuvrajbhatnagar1035]

You are just fantastic man....i have watched your videos for a while now anazing knowledge, presentation style and wffort to deliver value

[@telegenic21]

Works for me. I’ll catch pops on the drawdown and buy or sell again as it goes into my direction. Plus stacking the daily movement💰

[@saleheentahmeed4454]

Love your delivery bro.

[@prahlad55]

Thanks Mark, appreciate your comparison, but how about trailing Stop loss versus hedging on intraday trade . which one is better?

[@bobbobertson7568]

I've always hated stop losses. Given usual volatility it basically locks in a loss, interesting idea for staying in the trade. How much relative to the long position would someone generally short? %

[@bashasilvian]

Hi Mark, great videos. But I just want to ask - wouldnt it be better to buy some instrument that is opposite? For example Gold or Bonds in this case?

[@danielbrink9475]

You still need a Mitigating Factor to offset the losing position, Either waiting for price to bounce back at the next zone and getting out on a break even on the loser or Entering another position in the new trend to offset the loss.

[@keertanachappa301]

Perfectly said : Its difficult to go back into the trade once we are out...Mind does not allow to take a U-turn..Everything you said is 100% true...Cheers

[@bookbearerplus]

Excellent video, thanks!

[@mann234]

Hedging is the best

[@networkgeek1450]

Great education. Thanks Mark.

[@mrithun15]

Instad of finding correlated markets, what do you think about hedging with options. If i went long on a FUT on an index, buying a put of the same underlying

[@daniel411vm]

You should do more videos on it ! What about direct hedging, is it better ?

[@changjoe01]

This can really explode your risk. Not for amateurs.

[@testname547]

It would be Interesting to see how a multi faceted hedge using long-NASDAQ100 short-DJIA30 in conjunction with the FTSE100 and DAX30.

[@robcodsall]

I get the logic behind this but isn't there a strong likelihood, with highly-correlated markets, that the weaker one - in this case the Dow - will gain in strength relative to the stronger one and the stronger will weaken relative to its partner? Isn't that the crux of a pairs trading / mean-reversion strategy?

[@michaeldurden3004]

Great video! I like this on FX, to open an opposing trade on the same pair to lock in profit or loss until the market moves to a point where u can close one of the two trades and continue the original trade. Same as discussed in the video, but without any chance of adding a smaller profit from a weaker correlated commodity etc. The mental/psychological benefit is what makes it a great method vs a 'real' exit and re-entry .

[@meghanworkman6449]

I'm still paper trading FX and have been intrigued by this strategy. I may try it the next trade I put on and see how it goes.

[@bashasilvian]

Thats locking... I dont recommend. As for me each time that I tried this I had a bigger loss.

[@stocktradingmastery]

Great idea & video ! thanks Mark

[@asalvani82]

Good video. Well done

[@jamejohnson5091]

Don't do this risk risk/ reward coupled with accuracy decides who wins and loses!

[@newmanogoloma6751]

Hedging is my next step in trading

[@dstr769]

I am already tuned...

[@TheNocTrader]

⬆️⬇️Hedging through options has definitely become a more viable choice especially if your trading the major indicies, now that some of the major brokers in the UK have introduced daily and weekly options trading

[@LivLiveLegends]

What are some other strong to week market correlations like dow to nasdaq?

[@hai.1820]

This is a very good idea indeed.. lets.say gold and silver. May be worth a try, something good to think of

[@rikirex2162]

tried already...the direction will change pushing both sides in loss... more and more...

[@dumbcat]

in the USA there is a borrowing cost for shorting equities

[@aL3CnR]

i put trades right after my stop loss (basically after a strong supp/resistence) so if anything happens when i am awayt, i stop loss and open position in the new strong breakup/trend (i rarely do this tho but it works)

[@kbs752_]

how long are hedging trades. allowed to run?

[@carlhopkinson]

Man, that weaker vs stronger cross-hedge seems pretty dubious.

[@carlo9524]

So you are telling me. Have as much short and long positions?

[@voodiethemoody]

What an interesting way to hedge...

[@henrybarnard644]

very interesting

[@KryptosChain]

*Mark, you're a legend. Keep doing these sort of videos. I watched some of your older scalping ones today. By the way, hedging in crypto would be like, get out of Ethereum or XRP to get into Bitcoin if I think that will pick up. Many times Bitcoin takes off without altcoins yet altcoins pump when Bitcoin's trading sideways.*

[@CountDain7]

Good strategy. But kinda tricky to pull off

[@abdulmusawwir6769]

Hedging just buys time

[@fkhdhd-xd6hb]

Why not trading the same active with difrent lots to sumulate this position

[@666jjdemon]

so which is better?

[@David-cs9zo]

Just accept the stop loss and move on to the next trade.

[@lisemariecaron7498]

interesting

[@Hoorespect]

you just made the video longer and longe but did not explain the hedging or stop loss clearly, all videos just short/long, and nothing else, you should clearly come the point whether a story loss better or hedging,

[@lisemariecaron7498]

And btc is going to break-out with volatility, keep an eye on it, its in a long range going to break out soon 💸💸💸 i cannot, no money

[@KryptosChain]

Yeah, it looked like a breakout yesterday but it was a fakeout to 9500 only for it to go back. I rode that too and got stopped out when it retraced. Gained a cup of coffee on it.

[@jayantchaudhary177]

Isn't this arbitrage and not hedging?

[@ukspreadbetting]

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[@davidprice9265]

Who taught you mark ?

[@ukspreadbetting]

17 years+ trading markets

[@lisemariecaron7498]

Have u seen the dow today? 27500 hoho, new record

[@mrsupermannow]

Lise Marie Caron time to short it

[@Simirial]

Hedge on an account that allows hedging, duhh

[@davidkincade7161]

It’s very simple: stop loss is like saying: “I don’t need put options- why pay the premium? It’s like saying: “I don’t need earth quake insurance! My neighbour is a stone mason, he will replace the bricks as they shake out! If u don’t own put options you are F$&ked!