Alright - I haven't ever hedged my portfolio, how do I learn to?
So i'm probably like most of you... I buy some stocks and ETFs here and there. Not with much analysis, more so trying to follow trends I believe in. But inevitably, I don't sell when I've could have taken good gains and my portfolio comes screaming back down in value, unhedged. I don't really trade options except the occasional long put or call.
So how do I go about becoming more educated on hedging to help reduce the impact of these big drawdowns? Especially as we are in a stagflation/early bouts of a recession...
Any book, blogs, etc I should study?
I would ask why you feel you need to hedge? Personally in my PA I just want beta. Hedging doesn’t create value, it just reduces risk. So it’s not necessarily a good strategy - depending on your goals
My hedge is cash, or puts. Keeping it simple
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