Hedging is a bad thing

After thinking more about the hedging strategy, I’ve opted to try to
exit my position in the EUR/USD.  There seems to be a lot of
downside with GBP/USD longs considering the word on the street is there
may be an interest rate cut in England and another 25 point increase in
interest rates in the US.   It goes to show that this is
quite an unpredictable market and money management rules or else it
gets bloody.  I’m bloodied up right now and not quite sure what to
do about my Sterling position.

I find it very difficult to trade
2 currency pairs when the USD is everything.  It seems to me like
no matter what, if the USD is doing well, it isn’t wise to short it
with any currency pairs.  So why trade more than 1 currency pair
that includes the USD?  Good question.  You can always trade
a cross like the EUR/GBP which has a 3 pip spread.  I’ll have to
explore this more in the future.

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