Thursday, June 23, 2022

♟ Bear Market Hedging Strategies: Part 1

Trade of the Day Logo
Stock Market Manipulation

Editor's Note: With the markets struggling, we're here to help you make it through. This is Part 1 of a two-part series to help you navigate the bear market.


"In a black swan event, $500 - or 0.5% of your portfolio - should provide ample coverage to make up a big chunk of your losses."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Hedges are a good thing, but they are often misunderstood.

The truth is... hedges lose the majority of the time, but that's because they're typically used as a form of insurance - just like your homeowners policy.

When you pay for your insurance policy each year, you consider it money well spent.

You should think about hedges in the same way. They're the cost of doing business. If you have nothing to hedge against, don't use a hedge.

In this series, I will share a bunch of different ways you can hedge, depending on your risk tolerance and how much capital you have available.

Let's get into my favorite hedge: the tail risk hedge.

This strategy is based on protecting against an unpredictable black swan event (like the onset of the COVID-19 pandemic in March 2020).

There's a lot of theory behind tail risk hedges, but I will give you the nuts and bolts.

Click here to learn about the tail risk hedge

Bill O'Reilly reports on "the next great medical breakthrough of the decade."

Green and O'Reilly
 

The Gates Foundation, Fidelity and Elon Musk are going all-in on...

A new development that "will change healthcare forever" (according to Inc. magazine).

Click here for more on Bill O'Reilly's special report on "the next great medical breakthrough."

INSIGHTS YOU MAY HAVE MISSED

Two Part Play Hero Image

An Awesome Play in 2 Parts

Alttext

This Will Be Critical as Recession Fears Grow...

Alttext

The ONE Trait Investors Need

Alttext

A HUGE Opportunity in a Brand-New Asset Class

Why This $2 "Next Gen Crypto" Could Be Bigger Than Bitcoin

EKCoin
 

The Wall Street Journal Calls It the "Latest Cryptocurrency to Surge."

Here's Why It Could Be Bigger Than Bitcoin.

Instagram

Follow Us on Instagram!

FACEBOOK

TWITTER

 

No comments:

Post a Comment

BoF VOICES 2024: Alessandro Michele, Nicky Doll and More

Tapestry-Capri Deal Called Off; Burberry's Course Correction; Alexandre Arnault's New Role ADVERTISEMENT WHAT...