GoFuckYourself.com - Adult Webmaster Forum - View Single Post - a question for the investing experts here

marketsmart · 09-15-2008, 10:31 PM

Quote:

Originally Posted by ok_ok_ok

time to practice Hedging.

Hedging is a strategy designed to minimize exposure to an unwanted business risk, particularly in inflationary economies, while still allowing the business to profit from an investment activity.

Banks and other financial institutions use hedging to control their asset-liability mismatches, bla .. bla ...bla

yes, hedging can be very valuable in an uncertain market.

i rarely hedge when trading currencies, but tonight i am getting ready to take equal positions (long & short) on the USD/JPY pair.

the reason for this is that there is some big data coming out in the next 8 hours.

my gut tells me that the CPI numbers are going to be lower than expected, however japan has made it very clear that they will prop up the currency pair if need be.

adding to the CPI numbers is also the uncertainty of how the US and European markets are going to react to todays decline in the US and Asian markets as well as the AIG situation.

so, i will take positions both directions and as soon as a short term trend is established, i will close out the losing position and try to ride the winning position for as long as i can..