Hedging is dismissed by the majority of traders as unnecessary, too expensive, and not as effective as other methods. So most people would say your advice is wrong. Please feel free to show with examples how you successfully hedge your positions.
Does it matter? Trading is about making money, not about being right or wrong. If mom and pop are driving the market, take advantage of them!
Oh, I hedge. It's actually the part of my strategy that has received the most consideration by far. There are weeks that a crash would actually put me ahead.
There is a soft kind of limit on how fast the markets can grow in the next ten years. If the US GDP grows at 3.5% and the stock markets grows at 7% per year, then in 2027 then the market capitalization to GDP ratio is about 200%. In the height of stock bubble in 2000 this ratio was 145%. If the eps in sp500 grows at 4.5% and the market returns at 7% annually, then the P-E ratio in 10 years will be about 24. In any case it is hard to argue the the bull stock market is at a young age.
Long until wrong. Also bet Trumpie will continue taking credit for bull long after he gets his You're Fired Impeachment Pink Slip.
There's no way they'll let it drop more than like 5% or whatever. Should keep going up most days for a good few more years yet Initial 3k target for spx is guaranteed fairly soon
Feel free to explore the calendar spreading I have been trying on and off for about 11 months. What I have been trying is just one simple way to hedge. There are many many other ways to hedge, and I am a very unsophisticated person. There are options on the futures, there are stock futures, there are inter-market spreads I have yet to explore... there is even the news and weather! :-| Read through my journal to see what I am on about. https://www.elitetrader.com/et/threads/and-they-have-a-plan-live.306838/ I am no expert on hedging, and I wish I knew how to hedge my futures positions with options. I just work with what I understand. But I do understand that hedging is an important method of mitigating risk. Remember, I work ONLY with futures. I do not trade stocks or ETFs or whatever. Keep that in mind. But it seems that no matter the product you are trading, hedging is necessary to mitigate your risk.