**MISJUDGEMENT OF HEDGING, GRID TRADING AND USE OF SL**

After 2 well-known grid-trading strategies have blown up, almost every self-appointed trading expert jumps in bandwagon of thrashing the usage of grid trading and highlights the importance of actual SLs. The same individuals tend to mention a term *hedging, *without properly understanding what's behind that. FX Sumo is here to clear the confusion and give a more rational perspective...:)

Before we start this, we should mention that our current FX Sumo trading methods employ grid trading elements, thus, there could be someone implying that our view is biased. Although there is a clear logic behind such thinking, let us assure that throughout this article we will remain as objective as possible.

**What is grid trading?** - trading methodology, based on which positions in the same currency pair are opened if the prices deviate from first position, usually, on the negative side. Basically, You add up on Your losers, hoping that the market will eventually turn around and ride in Your favor. Here is visual example: