Post
Topic
Board Nigeria (Naija)
Re: Hedging vs stop loss order (A more risk management strategy)
by
royalfestus
on 27/08/2024, 21:58:08 UTC
Experienced traders will tell you that what you referred to as hedging is not part of risk management. Instead of hedging, why not just close the position instead. If you have been trading and have experience about trading, you will understand how useless hedging is.
Hedging can be a valuable strategy early in a bull market, especially now when Bitcoin's returns aren't as parabolic as they once were and when it's signaling a bull cycle and leading the market. Beyond that, I would recommend outright hedging as the more suitable approach. In this unpredictable market, no altcoin can be reliably forecasted, particularly when project teams often cycle through the market, creating, using, and then discarding projects. They then reinvest the profits from these projects into new coins to generate further returns for themselves.