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Kerry Lutz's--Financial Survival Network

Sep 7, 2022

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.

-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

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