Treat Your Hedges Like Insurance!
Let me preface this by saying, from where things are right now, I don’t think there is going to be some huge market crash sometime soon…
But I do think it’s important to understand that there’s always the possibility of downside…
Given this, it’s in your best interest to protect yourself from that possibility!
So what can YOU do to remain bullish but also cover your bases?
Over the next few issues I am going to provide helpful insight on how I personally protect my own portfolio against loss.
Think about it like car insurance, hedge plays can be small positions that you have in place just in case something happens and the market falls off a cliff…
You wouldn’t want to get caught in a car accident without insurance would you?
And remember, I am still bullish until proven otherwise!
Bottom line: Protect your portfolio and treat your hedges like insurance!
Keep it In the Money,
Trading Tip of the Day: Know When to Get Tactical!
The market is in a constant state of change — and the most important job we have as traders is to know when to buy, and when to wait it out.
Lately, the market has been experiencing periods of sell-off in addition to rallies. But these rallies have been short lived…
In fact, investors that too eagerly bought back into the heavily sold-off tech giants most likely got punished when the Nasdaq took a hard turn downward last Thursday.
Randomly buying the beaten down tech names hoping they’ll spring back up just won’t cut it right now.
Instead, it’s time to get tactical. Pay close attention to price and emerging trends. There is always opportunity out there, and analyzing market reactions is your best shot at finding the next big winners.
— Greg Guenthner