Ok better clear up a few more things here.
For me a scalp is just 1 pip of profit which I call break even.
A hedge is a trade placed equal to the sum total of all the lots I am hedging so it is normally of far greater size than a scalp.
All trades begin as scalps, it is the progression that makes the difference. A scalp may or may not turn into a trade. The money management takes care of this..
Let me assume here that everything is done wrong and the trader is trying to profit from the longs. i.e.. the Bull Divs below the EMA.
1) Is a bull div and a long is entered. The expectation is to cross the EMA and the bulls to find support. As price approaches the EMA we move our stop to BE + 1 and 4 hours later we are stopped out.
2) Again a bull div, same expectation, same result stopped out for BE + 1
3) Again a bull div and a complete and utter loss.
4) Again a bull div but we have no entry because we are still losing number 3. Never add to losing trades.
5) Again a bull div and it was threatened by the hook but we are ok so far. When price approaches the EMA about X we move our stop to BE + 1 The rest is history as the trade takes off.
This is a winning situation even though we did everything arse upards by not taking the shorts This is why we have a money management plan in place.
For me a scalp is just 1 pip of profit which I call break even.
A hedge is a trade placed equal to the sum total of all the lots I am hedging so it is normally of far greater size than a scalp.
All trades begin as scalps, it is the progression that makes the difference. A scalp may or may not turn into a trade. The money management takes care of this..
Let me assume here that everything is done wrong and the trader is trying to profit from the longs. i.e.. the Bull Divs below the EMA.
1) Is a bull div and a long is entered. The expectation is to cross the EMA and the bulls to find support. As price approaches the EMA we move our stop to BE + 1 and 4 hours later we are stopped out.
2) Again a bull div, same expectation, same result stopped out for BE + 1
3) Again a bull div and a complete and utter loss.
4) Again a bull div but we have no entry because we are still losing number 3. Never add to losing trades.
5) Again a bull div and it was threatened by the hook but we are ok so far. When price approaches the EMA about X we move our stop to BE + 1 The rest is history as the trade takes off.
This is a winning situation even though we did everything arse upards by not taking the shorts This is why we have a money management plan in place.
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