LogFAQs > #944640235

red sox 777 posted...

As a general rule I don't hedge. Hedging is betting against yourself, which doesn't make sense. It greatly reduces your gain if your stocks go up. If you're really not feeling good about NASDAQ stocks, find some other stocks you do feel good about, or sit in cash if you can't find any.

If I had to hedge, I would buy deep out of the money puts. Deep enough that it wouldn't cost a lot, and it's really there only to protect against extreme, catastrophic, events, so I don't lose all my money at once. But you can also get almost as much protection from that by diversifying among multiple stocks, and it's much cheaper from an expected value point of view.

I have zero knowledge and experience regarding options so the put thing is not something I would do..for now at least
But thanks for your insight, appreciate it.
I just want something to make me feel like I am "protected" because what happened in the last two weeks crashed me. NASDAQ going down 6% was just too much too bear. If I hold a short then at least I can cash it out...it's not like I know or can time the market. I just want to hold the stocks I have for the forseeable future but protect myself a little as well

---

wololo