1Sem.
So, in your opinion, what's a sensible way to hedge? Should small investors use stop-loss orders with ETFs? Should they keep a lot of cash on hand to buy more, or what would you recommend to a small investor?
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1Sem.
@Lum0k It’s hard to give general advice. I don’t know your strategy or personality. If the idea of long, deep drawdowns stresses you out, then go with trend-following. Choose a moving average (200-day) and sell as soon as your ETF falls below it at the end of a month, then buy back in when it rises above it again at the end of the month.
But try to understand why this makes sense and what the consequences of this simple strategy are. In any case, this would give you a form of dynamic hedging.
But try to understand why this makes sense and what the consequences of this simple strategy are. In any case, this would give you a form of dynamic hedging.
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or buy more when it drops below, each to their own right :)
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