How we can earn through hedging?

Hedging is a technique that only a few traders know (in my view), actually most of the people doesn't know how to hedge and what actually hedge strategy is? 

I tell you that what is hedging, mostly people think that locking position is called hedging, it is true, but how much kind of hedging are? is only locking position enough to define hedging? Do you know that how big traders hedge and make money? let me explain it in simple words.

If someone has a big capital, for example 10k, (10,000$) and he is trading with 1$ then he will open two trades with any kind of pair he choose, let suppose he is trading with Eur/usd and the price is 1.27000, then he will open two trades, one is buy and other is sell, now market moves on 1.28000, then he will close the trade of buy at 1.28000 and see the possibilities of market whether it will rise more or not, then he will again open two trades of buy and sell, if the market moves 1.29000 then he will close the buy trade again and see whether the market is moving back or not. He will keep doing this until the market reach to 1.34000 to 1.37000, he will book the profits and keep the sell trades open, it may take one month or two, but if we see in longer spectrum then we will analyze that how much market may move, and if the market is bullish then we can use double lot. like if the market is on 1.30000 and there is a chance that market may move up again then we will open one sell trade with 1$ sell and a trade with 3$ buy. It will make the trades equal. 

We need to know that if the market is going up then it will fall down definitely once, and that fall will give us good profits, that most of the hedge traders do, they have a lot of patience, they don't do short term trades to book some profits. they do longer term, as I have mentioned above. If we see the Eur/usd pair from the last six months then this pair has been depreciate from 1.37000 to 1.29000 right now, so we can understand that how much profits a long term trader would make if he open two trades of falling market? but remember this strategy need a big capital, not a small capital.

What is hedging?

What is hedge? so many people ask this question, and my answer for them is just opening two orders one is buy and other is sell with the same trading volume is called hedging, in simple words if you have opened a lot of 1$ size of buy, and you see the market is falling then you will open an order of 1$ lot size in sell, that step will neutralize your position and the fluctuation of market won't hurt your capital if your orders are open, I mean to say no stop loss nor take profit.

Some people say that it is to lock the position, yes they are right, this strategy locks the position, but sometimes it make you confuse that how to open that lock, so whenever you use hedge then you should know when to unlock that position and how to unlock, for example if we open an order of buy with 1$ lot size and see market is falling due to any reason, then it will reduce our equity quickly because of big lot size, to save our capital we will have to place another order of sell with the same lot size, that is 1$. Now, position has been locked, and market becomes neutral, now market is falling continuously, here you can take a chance, you can change the strategy. I mean to say that you can open the hedge if market is falling continuously. How, you may close the existing buy order and let the sell order open to make you profits.

Or you can do another thing, if you see market is falling then place another sell order similar to existing lot size or just reduce 50% of lot size to secure your capital if the market reverse. But whenever you trade in the market, it is very much necessary to focus on market trend.