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Thread: Hedging or Scalping?
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04-08-2013 05:57 AM #1
Hedging or Scalping?
Every trader have different strategy when trading. So, what do you prefer to use, Hedging or Scalping? And why do you use it? Let's share here.
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04-09-2013 05:47 AM #2
No one who has not shared here. Maybe I could start it. I prefer scalping than hedging. Because I can get a larger number of pips in a short time. And leverage provided by my broker is also very suitable for scalping.
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04-09-2013 09:53 AM #3
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Scalping for me all the way. I trade in a very short time frame with a couple of positions open simultaneously. It feels more hands on, and I like the thrill of it. I'm just glad my broker, profiforex, offers a 0.7 spread on the USD/EUR pair. I've never actually tried hedging, I hope someone who does could share his/her experience.
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04-09-2013 10:52 AM #4
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Why would hedging(same pair) be an alternative to scalping in the first place?
Hedging comes into play when you don't know what to do with your open position...it might even be a scalp trade that went wrong direction.
But if you mean to hedge i.e. a long eurusd with a long usdchf, that's what I'm doing from time to time (also eurjpy and chfjpy in opposite direction)
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04-10-2013 06:06 AM #5
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04-11-2013 10:57 AM #6
Why are you considering hedging as a possible strategy? Hedging is often done by businesses and big institutions to protect themselves against adverse price movements. It is more a 'defensive' measure to protect against losses.
Scalping is a viable trading method but you must be aware that it requires you to be looking at the charts for prolonged periods of time as it involves trading on very short timeframes. Trading opportunities present themselves on very short notice.
If that is not your cup of tea, perhaps you might want to consider trading on higher timeframes such as H1, H4 or Daily. Trading on hese timeframes does not require you to look at the charts often. For example, trading on Daily charts requires you to look at the charts maybe twice a day - once in the morning and once at night to manage the trade.
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04-17-2013 03:47 PM #7
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My Questions:
1.) What is your typical TP & SL for Scalping?
2.) What is the ratio of your Winning Trade Vs Losing Trade for Scalping?
3.) Are you trading with Fixed Lot? or MM?
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04-26-2013 09:47 AM #8
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I believe scalping involves a lot of trades in a day, trying to get small profits from each trade by taking advantage of the bid/ask spread.
One benefit that scalping has is the risk is much lower than traditional trading methods.
You can also lose all hard earned profits in a single trade. So we need to be careful when dealing with scalping because there is NO PERFECT STRATEGY.
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04-26-2013 04:08 PM #9
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Last edited by apple1937; 04-26-2013 at 04:21 PM.
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05-29-2013 07:18 AM #10
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