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Hedging or Scalping?


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Which is better for new traders with limited funds and risk tolerance: hedging or scalping?

Trading is not suitable for limited funds or risk tolerance. In trading, first rule is to risk max one percent on one trade (symbol) at any given time. If funds are limited, this is biggest issue. With limited funds, people try to take big risk to take big rewards and this might work for some times but eventually they blow up all there account.

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Scalping is taking a few pips off a market overshoot. Hedging isnvolves (in it's most basic form) using one financial instrument to generate profit, and another to minimize risk.

 

We will need to better understand that if the trades are being done by us involve Hedged trades then the income we are going to get from one currency will also get neutralized by the losses we are going to get in another currency.

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