Hi all,
I have read so many times that it is always best to hedge your profits to increase profits in the longrun. Does this therefore mean that you should not hedge your loses as this will also maximise losses in the longrun?
Many thanks Billy.
Hedging loses??
-
andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
If you read your first sentence you will see that your second isn't correct.
I looked into this a while back and hedging both profits and losses showed a significant clear profit compared to all other combinations. However, this was before the days of the Premium Charge.
If you search the forum you should be able to find a thread where this was discussed before. Might take some finding though.
The other benefit of hedging your losses is the emotional benefits. It is much easier to cope with small losses than taking less regular big losses. Also your bank will not fluctuate up and down massively which could cause problems if you had several large losses come in in one afternoon.
I looked into this a while back and hedging both profits and losses showed a significant clear profit compared to all other combinations. However, this was before the days of the Premium Charge.
If you search the forum you should be able to find a thread where this was discussed before. Might take some finding though.
The other benefit of hedging your losses is the emotional benefits. It is much easier to cope with small losses than taking less regular big losses. Also your bank will not fluctuate up and down massively which could cause problems if you had several large losses come in in one afternoon.
