Hi David,

I am currently a swing trader in the forex market. I am interested in your opinion as it relates to knowing whether or not hedging some of my trades would be beneficial to my trading style or not. Let me give you a brief desciption of my trading style so you can better descern whether or not hedging is for me or not.

I set my trades up(using day candlessticks) with an initial stop loss, but I never set a limit (take profit)order. I am exited from trades by the stop loss orders that I set. In other words, I reset the stop loss everyday, according accorrding to how the currency pair moved, by analyzing the last "closed" day candlestick. And this is done everyday until the stop loss is hit, and I am effectively taken out of the trade, hopefully for a profit. These technique took me about 6 months to perfect. Usually when I am stopped out, the trend that I was riding is about to reverse anyway.

My stop loss method of exiting the trades seem to work at least 80 percent of the time, but it is the times that I am exited out of the trade prematurely(because my technique failed) that concerns me. For instance on a highly volatile pair like gbp/jpy I may get stopped out early and subsequently miss a rebound in the market of
200+ pips. That is very frustrating. So my concern is, should I place a hedge of some kind (with a stop loss on the hedge itself) in place of my conventional stop loss so that I dont lose anything when the market is going against my trade, but at the same time be positioned to profit when the market starts to head in favor of my original trade position? Please make a video or tell me how to successfully hedge my trades, if its in my best interest, that is, that would be suitable for my trading style. Thank you.