Best hedge for you’re life
Im always on the looking out.
What is the way I want to have things for me and my copy’s and what would be ideal well at the moment is the above.
Its so important these days staying liquid and have cash on hand so you can move fast when markets drop and or rotations are happening. More important Reasons to stay liquid is things can change and they change fast broker rules can change, regulations can change, life can change, world can change, its an endless list of risks
Rotation in stock markets are real
So you always want cash on hand so you can move quickly and I’m always on rotation that is happening in the markets
Best hedge for you’re life
I do always say trading and investing are not the same and you need both!
Best hedge for you’re life is Stay liquid, get income, and make appreciation profits.
What is my edge in trading
When the markets are rising its easy to make money but where is my edge?
I know what is my best hedge is life If the shit hits the fan Im able to trade it and make money out of it! Its not a promise for future results but I Do know I know I make money in those times from my trading journals and track records. You can check for yourself in 2014 Euro/usd crash made 600% not a typo! Brexit I made money from a hospital bed in the middle of the night (that was fun for a lot of reasons.) March last year markets was crashing down and we where up 33%. Its what I can do best trading trough hard times.
Focus WORKS in you’re trading account
Yes is does 2014 I made almost 600% on one asset class the eur/usd this was done wit low drawdowns which I’m super proud of it mend stay liquid! Etoro does not let you focus anymore which in my opinion is wrong I mean a good trader knows when to focus and when not!
You can be wrong with you’re trades way more than 50% of the time
it does not matter. If you’re winners are way bigger than you’re losses. Again 2014. Good risk management is key here and its not the obvious 1 to 3 times on the take profits do not even know anymore how they say it! Since its useless. The best traders in the world take MASSIVE losses now and then check warren buffet and George soros to name a view
Diversification in stock portfolios
So maybe of you wonder how much stocks do you need in my stockportefolio well the real answer is 1 or 5 could be enough trough periods. Those are not my words check out warren buffet! And More greatest traders
You can get diversified to much:
There is a point at which you basically have to much of the same and having filler trades You see those a lot with long term investors they do not reduce risk the ad to risk since you have cash in filler trades. And therefore you are less liquid!
How to be flexible in trading:
Well first of you need to be flexible like water going in and out trading streams trend rotations cycles.
First very important thing is STAY LIQUID so you can move and have no lockups.
Second thing get income in you’re trading account yes (dividends) so you can use that to, to support the new waves rotations etc.
If you’re not a flexible persons than you need to practice. Like a lot.. I even have an trading account where I take a lo of risk and get a lot of trades wrong to than find ot I still got an edge ( get out of you’re comfort zone) Everyday!
Stay liquid have income get apriciation profits