This article will look for the advantages and weaknesses of trading. we will teach you how to make profit from buying and selling in the forex market at the same time we will also break some principles that say ( cut the losses and let your profits run) and also which say (Don’t enter into buy and sell deals at the same time ).
the principle of the hedged grid trading system is you should be able to cash in at a gain regardless of which way the market moves. So no stops are needed. One would have a buy and sell active at the same time and this is the only logical way. Many traders will immediately say this is trading suicide but I will prove the opposite let’s take a closer look.
Imagine a trader enters the market with a level of say 100 and active buy and sell. The price moves toward 200. Then the buy will be +100 and the sell will be -100. Here we are going to break trading rules. We will cash in positive buy and 100 goes to our account. The sell is still -100.
You must make sure that cash in on any movement in the forex market. So you should enter again into a buy and a sell transaction. Now let’s assume that the price returns to level 100.
The second sell is now +100 and the second buy is -100. The rule says one would cash in the sell and another 100 will be gone to your account. The total cashed in is 200.
The first sell now has moved from level 200 as it was -100 to level 100 now it is breaking even.
The 4 transactions are then:-
The first buy cashed in +100, the second sell cashed in +100, the first sell now breaking even and the second buy is -100. This gives a total gain of 100.
This is what we mean by buying and selling at the same time.