ForexGen | You Don't Always Have To Hedge To Limit Your Losses

Forex Trading Strategy: Alternative to Hedging
One of the popular ways for traders to cover themselves is through hedging. This is when you place an opposite order to offset a losing position. However, this doesn't always work well.
For medium and long term currency trading, it can help to have an alternative to hedging. Forex Strategy Secrets describes a forex trading strategy

1. Place a stop loss order on your position -- something of about 40 to 50 pips.
2. Watch as the market goes against you.
3. Allow the market to continue (perhaps your position loses between 30 and 100 pips).
4. Put in an order for the same position as your stop loss position. Whether you are long or short, keep that position. This way you will benefit when the market turns around.
5. As the market turns around, you are picked up and you ride the wave.
Obviously, as with any forex trading strategy, there are risks and this could totally backfire. But it is an interesting alternative to hedging, and could be useful for some traders.

Why ForexGen?

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.