Hedge
Hello friends
I've spent 20 years in the market and have seen many scenarios taking place
Hello friends
I've spent 20 years in the market and have seen many scenarios taking place
We have seen extreme volatility in the recent past and it proves that hedging is extremely necessary for intraday as well as overnight trades.
I always hedge my positions no matter what
1: I have always been a trader who prefers mental peace more than anything and I don't like to see big mtm swings and hence my positions are always hedged
1: I have always been a trader who prefers mental peace more than anything and I don't like to see big mtm swings and hence my positions are always hedged
2: My first aim is always capital protection since the money which I've made from stock market in last 20 years is made by extreme hardwork.
3: I'm fine even if I stay flat for a couple of months but capital should always be protected.
Hence, hedging is a must no matter what.
4: I also don't need to watch sgx nifty after market hours and instead I can spend that time with my family, friends and do other useful tasks.
4: I also don't need to watch sgx nifty after market hours and instead I can spend that time with my family, friends and do other useful tasks.
5: There many people who mock me for making 2-3% monthly because it's low as per them.
But let me tell you, I've spent 20 years in the market and have seen plenty of people lose their entire capital in search for high returns.
6: There's a different kind of mental peace when my positions are hedged as opposed to naked selling.
I know even in the worst case my absolute loss won't cross more than 5-10% of my capital and that can be easily recovered in 2-3 months.
7: I had done naked selling when I started on a small capital.
But if you genuinely want to scale up and work with a big capital then you need to to hedge your trades.( जैसे हर कोई सचिन नहीं हो सकता वैसे ही हर कोई Mitesh Patel नहीं हो सकता )
8: I have been trading with an extremely significant size and cannot even imagine doing naked selling with the size of the capital.
9: And the risk also exists in intraday not just positional.
If the exchange hangs then even stoploss won't work. Only solution will be hedging.
I believe in staying risk defined all the time.
I believe in staying risk defined all the time.
Trading just like any other profession is the same.
So my only suggestion to all my friends is just have faith in yourself, observe the trades and then practice. But always bear in mind the importance of risk management.
So my only suggestion to all my friends is just have faith in yourself, observe the trades and then practice. But always bear in mind the importance of risk management.
Because in my early days when I started as an option seller, I always used to control my losses, so whenever I lost, I lost small and I realized once you start controlling the losses, the profits are automatically taken care of.
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