i always kept on bleeding till I started hedging.
hedging is like insurance to the trade. it costs something, but it gives safety cover. it reduces/eats from the profit but it ensures that you don't lose big plus you profit more often due to less stress and panic.
after the safety cover of hedging, i focused on better prediction of the direction in short and medium term.
many say it can't be predicted. well, that's what operators want us to think. while it may not be possible to predict accurately or everything, like rain....but you can always find a way to predict the chances of rain vs snow
learning to predict better and better takes a lots of time. i once equated it in one of my articles to drug discovery. it is painful, costly, exhausting and time consuming. many don't survive that arduous journey. that's why i say to myself that surviving is crucial to winning.
hedging takes care of our longevity till we discover the wonder drug
if you want to take short positions, eg, take 200pe vs 100ce position...or similar traps....
of course, i have seen operators play premium eating games even there and it may appear that if market moves down, 200pe would gain much much less than 100ce would gain....reducing, apparently, the logic behind the trap. but that is temporary and is part of the trap....operators are desperate to get you off their side. they carry the helplessness of going against the weight of the broad macro fundamentals of companies/sectors/economies.
master any 1-2 indicators and mix them with game theory....observe the historic moves over different time lines and start betting small in hedges....that's a good path to pro-trading imho....
you have to do Ph.D. in 1-2 indicators than matriculation in 10. no wonder, the richest funds and operators are called "hedge funds".
