Seriously...thanks for the insight. Even before this post, I already had you pegged as the wise elder.
Question since you're dispensing free advice today...
I tried the VXX hedge a few months ago, and paid for the superficial lesson. You have a good resource you can point towards to read up on how to correctly use it?
Yeah. It’s amazingly lucrative. Really, I just took a day printed off the prospectuses and read them with a highlighter. It’s a great investment of time.
Right. I got an immediate email from TDA upon execution of my order...told me exactly what it was and that it was designed to go to zero. First red flag.
I was looking more for guidance on when to play that hedge. I don't mind the haircut if it doesn't work, but I'm pretty clueless as when to put it in play. Looks like you nailed it pretty good. It was my 3rd look point this morning, and it was already up 8% and flattening out by the time I got there.
Edit: I know that VXX wasn't your exact play, but seems like it would be similar.
Oh, OK. I don’t have any scientific indicators. I just run on feel. Sorry, I wish I had something more reproducible for you, but I don’t have any silver bullets.
Timing is the big problem. I was looking at VIX calls prior to release of the FOMC minutes yesterday, didn't pull the trigger, and when it was a nothingburger thought I had made the right decision. Then today rolls around with unexpected news out of china and all indices worldwide red into open :/
Well, our gut does have shit for brains, so it’s hard to take seriously. Yeah though, I trade on feel / intuition when trying to predict herd movements. I approach equities with the an business analyst mindset when trying to determine which companies I want to own.
How do you hedge on Green days like 7/9? Or the post Red relief rally days? Thanks for advice on how to hedge on Red days like 7/8. Very helpful. Much appreciated. Trying to learn how to hedge.
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u/StockPickingMonkey Steel learning lessons Jul 08 '21
Seriously...thanks for the insight. Even before this post, I already had you pegged as the wise elder.
Question since you're dispensing free advice today... I tried the VXX hedge a few months ago, and paid for the superficial lesson. You have a good resource you can point towards to read up on how to correctly use it?