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.

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.

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.

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)

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.

 

It's low spread and very suitable for scalping. I also prefer to do scalping. If we can take advantage of market movement, we can get huge pips in short time.

 

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)

 

Right, and thanks for sharing, guys.

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.

 

 

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.

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?

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.

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.

 

If you risk 15, 20% or even 30% of your trading capital for a single trade of scalping. I do not think that the risk is lower than other trading methods. One thing that I agreed with you is " There is no perfect strategy"..:)

Edited April 26, 2013 by apple1937

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.

 

I more prefferer SCALPING-Martingle + Cut and Switch Risk Management; the reasson the change you will survive and your account growth its more big rather you used a hedging strategy.

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.

 

Scalping means to jump into a trade and jump back out within a 5 minute period. It has nothing to do with the frequency of trades during the day.

The term scalping may conjure up images of someone removing the enemy's hair as a trophy, or the guy standing outside a sold out concert selling tickets for an inflated profit.

Forex scalping is almost as scary, but definitely comes with a huge adrenaline rush - and possibly, quick profit.

Forex scalpers need to increase their per pip dollar value to extract similar profit from more conservative transactions where the cost per pip was lower, and the risk was lower. In other words, the risk to reward ratio is potentially heavier toward the risks. However, Traders who are primarily scalpers may disagree with this statement.

Scalpers user tight stop loss limits as a strategy to minimize loss should the trade go negatively. Tight stops means little play for a market that moves in an up down motion toward a target. Scalpers therefore may be stopped out of many trades that were going in the direction they anticipated, racking up large losses.

I think hedging is not good approach to manage your risk. Traders usually do that if positions has moved against them and they hedge it. It`s like locking the loss.

 

Scalping is what I do. My EA gives me signals and then I will decide by watching the price action what to do.

 

For scalping you have to choose a broker whose trading costs are low.

Scalping is better for me too, fast trades, less stress, controlled result, the only thing is to avoid news and not stable market and currencies

Don't bother arguing with the anti-hedging clique.

I use similar strategy and it works for me. MACD divergence is a guaranteed money maker.

Scalping is better for me too, fast trades, less stress, controlled result, the only thing is to avoid news and not stable market and currencies

 

Actually, most of traders using scalping strategy. it's really profitable and can collect pips more fast and easy..

For me, I've used both of them in each trade. I've EA that using scalping,martingale,and hedging on their system. it's work great for me. I've used it on PAMM account in liteforex,roboforex, and some others..

I prefer to scalping, although its profit target of every order is not too big but with some open positions, the profits accumulated good enough. I can not linger in front of the computer to watch the chart, because I prefer to scalping. Noteworthy is the broker that we use, each broker has their rule for scalping, so be aware that we can fulfill the rule. So far I did not find many problems with my account when scalping in galleass.

Hedging is used only to protect or also to gain?

Main danger of scalping - loss of deposit, not the drawdown, but a complete loss of funds when a transaction closes by forceful stop out.

Scalping is a short term trading strategy by which we can make money quickly by closing it with a tight pips, hedging is a strategy of trading by placing the orders in both sides either in buy or sell, so wherever it goes, we can make money.

I suggest scalping because it is much easier than hedging, and scalping is also one of the quickest methods to earn profits based on a short time frame.

Which method is best and simpler to trade for beginner traders, Hedging or scalping?

Hedging against investment risk refers to the strategical utilization of financial instruments or market strategies to offset the risk of any adverse price movements.

Which is best suitable for a beginner to trade Hedging or scalping, and what are the risks involved in it?

Well, it all depends on the Market situation and to do it properly, you need to learn about Market Analysis.