Forex Profits by buying
selling at the equal time?
This romance is one of a series which looks at the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets.
We will look at how money can be made by breaking a number of trading truths or scholarship; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.
The hedged grid trading system uses the prime mover that one should be compelling to cash in at a gain no matter which way the market moves. No stops are forasmuch as required at all. The solo way this is logically possible is that one would have a buy and sell active at the same time. Mostly traders will say that that is trading suicide but let ' s take look at this more closely.
Let ' s say that when a trader enters the market with a purchase and sell active when a currency is at a level of say 100. The price then it moves to 200. The buy will then be constructive by 100 and the sell will be downbeat by 100. At this point we would start breaking all trading rules. We cash in positive buy and the gain of 100 ads to our account. The sell is pdq carrying a loss of - 100.
The grid system requires one to make genuine that cash in on any movement in the market. To do this a trader would again enter into a buy and a sell transaction. Now, for convenience, let ' s surmise that the price moves back to same 100.
The second sell has now gone outright by 100 and the assistance buy is carrying a loss of - 100. According to the rules one would cash the sell in and another 100 will be fresh to your statement. That brings recently the total cashed in at this point to 200.
Now the first sell that remained active has moved from level 200 where it was - 100 to level 100 where it is instanter breaking in line.
The 4 transactions fresh together any more magically show a gain: - 1st buy cashed in + 100, 2nd sell cashed in + 100, 1st sell now breaking even and the 2nd buy is - 100. This gives an overall a attainment of 100 in total. We can butcher all the transactions and have some champagne.
Efficient are many, many other market movements that humor this equivocal buy and sell at the same time activity into gains. These will be mystic in future articles and are covered in a free grid trading course which is available at the expert - 4x. com website for those traders whose inquisitiveness has been aroused.
