Hedging is crucial if you want to survive steep downturns like Monday’s
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3 Hedging Strategies to Protect Against Big Sell-Offs and Crashes
Monday’s market action was a perfect example of why traders need a hedge. We opened with a massive gap down, catching a lot of people off guard. But those who had protection in place — like the VIX hedge I discussed in Monday’s newsletter — weren’t sweating the drop too much. In fact, depending on how they structured their hedge, they were either protected or even profited from the move. Let’s be clear… Sell-offs like this are part of the game. Markets don’t just move in a straight line up. They pull back, consolidate and reset before making their next move. But if you’re trading without a safety net, a sudden drop like we saw can wipe out weeks — or months — of gains. That’s where hedging comes in. _____________________________________________________________ Kane Shieh Kane Shieh Trading Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. |
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