Audrey Deschenes
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Audrey Deschenes in Trading. Let's get it started!,

Every stock market investor should now consider a sensible strategy

Wise advice: Keep some cash on hand and use hedges.

A sensible approach Here are some, but not all, simple ingredients of a sensible approach that every investor should consider. • When there is risk in the markets, hold an adequate level of cash. Cash not only protects you when the market falls, it enables you to invest in new opportunities at better prices. • Use hedges. Hedges are like an insurance policy. You buy them when it appears you do not need them and they are cheap. You cash out partially when everybody wants them and they become expensive. As an example, we booked huge profits on hedges during the correction. The profit-taking points are shown on the second chart linked above. • Using hedges allows you to hold on to good long-term positions. • Hold a core portfolio, such as The Arora Report Model Portfolio, for the long term. If aggressive, surround the core portfolio with other positions. comprehensive timing model that has macro, fundamental, technical and inter-market inputs from across the globe. Also, use a timing model, such as The Arora Report’s ZYX Global Multi Asset Allocation, which has inputs in 10 categories. Please click here to see the 10 categories. • Buy on pullbacks in the buy zone. • Scale in and scale out. • Make decisions based on hard analytical data and not out of mere opinions or emotions.
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