---
title: 'Confused About Going Short or Long? Enter Both Directions at the Same Time | Hedging Explained'
source: 'https://youtube.com/watch?v=Xf_ure8hxaY'
video_id: 'Xf_ure8hxaY'
date: 2026-07-30
duration_sec: 622
---

# Confused About Going Short or Long? Enter Both Directions at the Same Time | Hedging Explained

> Source: [Confused About Going Short or Long? Enter Both Directions at the Same Time | Hedging Explained](https://youtube.com/watch?v=Xf_ure8hxaY)

## Summary

The video explains the concept of hedging in trading, where a trader simultaneously opens both long and short positions to manage risk and compensate for losses. The presenter uses a basic example with 2% take-profit and 1% stop-loss, detailing three possible outcomes. Strategies for maximizing profit include using hedging at support/resistance zones and around major news events.

### Key Points

- **Introduction to Hedging** [00:02] — Hedging involves entering both long and short positions to offset potential losses, based on the principle that someone always wins and loses in every market move.
- **Basic Hedging Example** [02:31] — Enter a short position with a 2% take-profit and 1% stop-loss. If stop-loss is hit, open a long position at that level with stop-loss at original entry and same take-profit.
- **First Scenario: Price Continues Down** [03:42] — If price moves down from entry, the short trade wins 2% profit directly, and the hedging trade is not triggered.
- **Second Scenario: Stop-Loss Hit Then Reversal** [05:36] — Price hits stop-loss, triggering long position, then rises to take-profit, resulting in 1% net profit (lost 1% on short, gained 2% on long).
- **Third Scenario: Consecutive Stop-Losses** [06:26] — Price triggers short stop-loss, then long stop-loss, causing a 2% loss (1% on each trade).
- **Strategy 1: Support and Resistance Zones** [08:18] — Use hedging at strong support or resistance areas to increase probability of profit, as price often reacts strongly at these levels.
- **Strategy 2: Major News Events** [09:11] — Apply hedging around news events where sharp price movements are common, potentially profiting from volatility.

### Conclusion

Hedging provides a probabilistic approach to trading with potential to win in two out of three scenarios. Key strategies involve targeting key support/resistance zones and trading around news events to improve odds.

## Transcript

With every market movement, someone is always winning and someone is losing. If you're in a long position and the market is rising, you're profiting and happy, but everyone who's shorting is losing and upset. Let me give you an example of a situation we've all experienced. When we enter a trade, we set our entry price,
trade, we set our entry price, take-profit price, and take-loss price. The price moves slightly towards profit, then reverses completely, hits the stop-loss, and we lose the trade. Of course, from the same point where we entered and lost, someone else entered against the trend and won. Everyone
wishes all their losing trades had been entered against the trend and were profitable. So, what do you think about us trend and were profitable. So, what do you think about us entering short positions at the same time,
market direction? This video is divided into three sections. The first section explains the concept, the second covers all the possible scenarios for the trade's trajectory, and the third section
discusses effective strategies for applying the term "hedging." Welcome!  In a new video, I'm Mohammed, and you're currently watching the Dr. watching the Dr. [Music] channel.
largest cryptocurrency trading platforms in the world. One of its most important features is that you can use it without verification, up to a withdrawal of two Bitcoins per day. Additionally, there are no fees for instant trading, and there's a copybook for professional traders. Free trading has also started,
along with ongoing competitions and prizes. Currently, to celebrate PayBit's fourth anniversary, all new and existing users have a guaranteed chance to win five dollars in the platform's currency, BENT. Of course, there are also grand prizes for a limited number of
people through the link in the description box. Thank you for watching the video. Let's begin. The video explains the concept of conversion, which is what we do in any trading deal. We
enter at a specific price. For example, let's say I want to enter a short position at this price because I think the price might bounce back down from this area. So, I enter at
this price and define my profit zone. Let's say I want a 2% profit and I set a stop-loss at, say, 1%. So
now I have a 1% stop-loss and a 2% profit. The trade could move in either direction; it could go up and cause me to profit. Everything seems fine. But, based on the principle of consolidation, what do I do if the price reaches my
consolidation, what do I do if the price reaches my stop-loss level? In this case, I'll open a new trade, but this time it's a counter-trade. If the new trade, but this time it's a counter-trade. If the price reaches this level,
price reaches this level, I expect it to bounce back and go up. So, I expect it to bounce back and go up. So, I'll open a new long position from the point where I lost, and I'll set my take- profit again at 2%, the same as the
stop-loss level. I'll also set my stop-loss at the entry point of my first short position. So, in this scenario, if
So, in this scenario, if the price...  The price rebounded from that area. First, I entered a short position, which reached the stop-loss level and caused me to lose. I have a possibility that the price caused me to lose. I have a possibility that the price will continue upwards and give me my profit. What
would have happened? I would have lost 1% on the stop-loss and gained 2% when the long position won. Therefore, I compensated for my loss on the losing trade. This is simply and
compensated for my loss on the losing trade. This is simply and briefly the principle of hedging. Now, let me tell you about the possible scenarios using the capital management system for hedging. Let's
go back to the drawing of the trade in Mauritania. Currently, as we said at the beginning, I see that I want to enter a short position from this area. So, I short position from this area. So, I directly set a short position at this price with a
directly set a short position at this price with a specific profit percentage and a specific stop-loss. Right now, I have a possibility that the price will go down or up to the stop-loss level, but if it reaches the stop-loss level, I want it to enter.  I'll put another long position, and its stop-loss will be at the same level
as my initial entry point for the long position. So, I'm currently in another long position, but its entry price is at the same level as entry price is at the same level as my stop-loss, and the stop-loss is at the same level as my initial
entry price. I'll set my profit again, and in this case, and in this case,
of the three possible outcomes. The second, and second best, is that second, and second best, is that the price rises from this the price rises from this level, hits the stop-loss, enters the long position,
rises again, giving me my profit on the second long position. In this case, I'll have lost the first thing.  I lost 1% on the first trade, which was the short trade, but I
compensated for 2% with the second long trade. Therefore, I would have made a 1% profit from Therefore, I would have made a 1% profit from both trades. There's a third possibility, the worst-case scenario. This scenario is simply
that the price might drop from this area, that the price might drop from this area, for example, and then suddenly rise unexpectedly, triggering a long for example, and then suddenly rise unexpectedly, triggering a long trade. The price might then move again and
trade. The price might then move again and fall, triggering another stop-loss order. So, fall, triggering another stop-loss order. So, I would have lost 1% on the short trade I would have lost 1% on the short trade and another 1% on the long trade
because the price hit the stop-loss order consecutively. We're faced with one of these possibilities, and with the hybrid or hedging strategy, we use this approach to try and increase our chances of
this approach to try and increase our chances of winning instead of losing. The entire principle of trading, my friends, is based on probabilities, and in any market situation, there are always those who win and those who lose. In this case, we are exposed to either winning or losing.  But
we are exposed to either winning or losing.  But we have a possibility of winning twice and losing once. So let's look, for example, at this trade we made here in this area. made here in this area. Notice how the trade unfolded. Immediately, like the viewers,
Notice how the trade unfolded. Immediately, like the viewers, the price reached the stop-loss area without giving me any profit. But the trade closed immediately with a single candle, giving me my profit for the second trade. So that's what happened to us now. Now for the second question: I made a 1% profit, and in total, I have a
trade that lost due to a stop-loss hit, and another trade that compensated for the loss and gave me an additional profit. Now that we've discussed the possible scenarios regarding hedging or
hybrid trading, let me tell you about effective strategies you can use to effective strategies you can use to achieve the highest possible profit. The first method achieve the highest possible profit. The first method is to always use hedging in an area that is a
is to always use hedging in an area that is a strong support or resistance zone. When the price reaches this zone, if it breaks through, it will either rise immediately
either rise immediately upwards or reverse immediately from there.  Therefore, you'll always be dealing with support and resistance zones. There's a support and resistance zones. There's a high probability that the price will reject
these zones and fall, creating strong resistance, or that it will break through these resistances and rise directly upwards. So, you're in a hedging zone, or a support and resistance zone. If you do this, you'll have a
support and resistance zone. If you do this, you'll have a high probability of profiting in these areas. The second strategy, or rather, let me give you my second piece of advice, is simply to give you my second piece of advice, is simply to use hedging when there's a
major news event coming into the market. For example, when there's a price announcement or a specific piece of news related to the market, there might be price movement or fluctuations when this news is released. At these
times, we usually see either a single candle directly rising upwards or a single candle falling downwards. These candles are always a reaction to major news happening in
are always a reaction to major news happening in the market. So, here, in the form of two trades, if we're in a the market. So, here, in the form of two trades, if we're in a hybrid trade system... Conversely, it's possible that one trader might win while the other wins, and
this often happens. Of course, I'm not saying it's 100% guaranteed, but I'm telling you that experience shows that
shows that hedging often yields very respectable profits. That's all I'll tell you in today's video, which I hope you'll enjoy. If you're not subscribed to the channel, please subscribe. And if you liked
the video, please give it a like. This greatly helps the video reach a wider audience on YouTube. Thank you very much, and peace be upon you.