Forex Profits at the Same Time by Buying and Selling
Forex Profits at the Same Time by Buying and Selling
Forex Profits at the Same Time by Buying and Selling
This article 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 principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the
The hedged grid trading system uses the principle that
one should be able to cash in at a gain no matter which
way the market moves. No stops are therefore required
at all. The only way this is logically possible is that one
would have a buy and sell active at the same time. Most
traders will say that that is trading suicide but let's take
some to look at this more closely.
one should be able to cash in at a gain no matter which
way the market moves. No stops are therefore required
at all. The only way this is logically possible is that one
would have a buy and sell active at the same time. Most
traders will say that that is trading suicide but let's take
some to look at this more closely.
Let's say that a trader enters the market with a buy and
sell active when a currency is at a level of say 100. The
price then moves to 200. The buy will then be positive
by 100 and the sell will be negative by 100. At this point
we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.
sell active when a currency is at a level of say 100. The
price then moves to 200. The buy will then be positive
by 100 and the sell will be negative by 100. At this point
we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.
The grid system requires one to make sure that cash in
on any movement in the market. To do this one would
again enter into a buy and a sell transaction. Now, for
convenience, let's assume that the price moves back to
level 100.
on any movement in the market. To do this one would
again enter into a buy and a sell transaction. Now, for
convenience, let's assume that the price moves back to
level 100.
The second sell has now gone positive by 100 and the
second buy is carrying a loss of -100. According to the
rules one would cash the sell in and another 100 will be
added to your account. That brings the total cashed in
at this point to 200.
second buy is carrying a loss of -100. According to the
rules one would cash the sell in and another 100 will be
added to your account. That brings 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 now breaking even.
The 4 transactions added together now 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 gain of 100 in total. We can liquidate
all the transactions and have some champagne.
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 gain of 100 in total. We can liquidate
all the transactions and have some champagne.
There are many, many other market movements that
turn this strange "buy and sell at the same time" activity
into gains. These will be covered 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 curiosity has been aroused.
turn this strange "buy and sell at the same time" activity
into gains. These will be covered 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 curiosity has been aroused.
by Mary McArthur
Forex Profits at the Same Time by Buying and SellingForex Profits at the Same Time by Buying and
Selling
Selling