After being through 2 Shanghai Crashes and about 6 Sub-Prime crashes this past year I am still amazed at how the hedging of the FOREX market has held up in the chaos.
Some traders I know were in and out of the market due to overmargined accounts and trying to tweak a system that works. They lost money.
But, when you just set the hedge up with a conservative margin with the intent to stay in for the long term the results can be much better because you are moving forward without the losses due to jumping in and out of the market.
See the latest results of the live demo on the left.
My real money accounts are doing as well or better than this demo.
Every demo and every live account I or my trainees have done since early 2006 are either well in profit or breakeven at this writing.
Hedging is a beautiful thing. With good money management the sky is the limit using such a strategy.
Though the USD is steadily declining in value and buying power it is good to have something to partially compensate.
FOREX RISK DISCLOSURE: It should be understood that Currency trading involves high risk. There is always a relationship between high reward and high risk. Any type of trade speculation that can yield an unusually high return on investment is subject to unusually high risk. Only surplus funds should be placed at risk and anyone who does not have such funds should not participate in trading foreign currencies. Currency trading is not suitable for everyone. We assume no responsibility for errors, inaccuracies or omissions in any material provided. We do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. We shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation, losses, lost revenues, or lost profits that may result from any material provided.
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