Generally, most retail traders use hedging when they are in a losing trade position.

For example, I might go long the EUR/USD, but the market price immediately tumbles down. In order to protect myself against further losses, I place a short order so that any further downard movement in price will not affect me — I may lose in the long position, but I partially make up for that loss by the gains in my short position.

This is how most traders I know 'hedge' against losses. Unfortunately, this is a terrible way to trade.