It sounds like you prefer to hedge a losing position and wait for the market to reverse, rather than closing it at a loss. This strategy can be useful if you believe the market will eventually move back in your favor. However, it comes with its own risks, such as the potential for increased exposure and additional costs.
Hedging can sometimes allow you to manage a losing position more effectively, but it’s essential to have a solid understanding of the market conditions, a clear risk management plan, and the ability to monitor the trade closely. In any case, minimizing losses and avoiding emotional decisions is crucial in trading.
What strategies do you typically use when deciding when to hedge or close a position?