Sep 7, 2022
Summary:
Wondering how to deal with volatility and protect your gains
defensively? David Jaffee comes on the show to discuss some
strategies for trading based on how the market is progressing. He
suggests that people hedge and take the opposite side, and also
recommends buying elongated put options. This, in addition to
taking the contrarian standpoint when investing, can help to reduce
your portfolio volatility. Tune in for more insight.
Highlights:
-How do you deal with volatility? Should you put everything into
cash or look for alternative strategies?
-What is a poor investor to do, and how do you protect your gains
from the last few decades defensively?
-People need to make sure that they hedge and take the opposite
side
-It’s wise to end up buying puts
-You can buy elongated put options that are two years in duration,
which will reduce your portfolio volatility
-It’s good to be a contrarian. When everyone is scared, it could be
a good time to buy shares
-Similarly, when the stock market goes up and people are euphoric,
disciplined investors are buying protection because the market goes
down a lot faster than it goes up
-As long as you don’t trade too big, you’re safe
-When the market is oversold, it’s better to buy elongated call
options
-In this moment, the risk-reward is favorable for buying elongated
call options
Useful Links:
Financial Survival Network
Best Stock Strategy