Comments on: Investor Strategy, Market Crashes http://www.stocktradingtogo.com/2007/07/27/investor-strategy-market-crashes/ Investing Online Made Easy Sun, 08 Nov 2009 12:58:08 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Recent Must Read Posts - Stock Trading To Go http://www.stocktradingtogo.com/2007/07/27/investor-strategy-market-crashes/comment-page-1/#comment-30370 Recent Must Read Posts - Stock Trading To Go Fri, 03 Aug 2007 04:21:17 +0000 http://www.falkininvesting.com/blog/2007/07/27/investor-strategy-market-crashes/#comment-30370 [...] Stock Market Crashes are no fun, and especially with the recent sell off, you should read this article to stay ahead of the game. Predicting and reacting are both covered in the post alongside some simple tips on how to deal with a market selloff. [...] [...] Stock Market Crashes are no fun, and especially with the recent sell off, you should read this article to stay ahead of the game. Predicting and reacting are both covered in the post alongside some simple tips on how to deal with a market selloff. [...]

]]> By: Market Reverses Late Afternoon - Stock Charts To Go http://www.stocktradingtogo.com/2007/07/27/investor-strategy-market-crashes/comment-page-1/#comment-30275 Market Reverses Late Afternoon - Stock Charts To Go Tue, 31 Jul 2007 21:01:48 +0000 http://www.falkininvesting.com/blog/2007/07/27/investor-strategy-market-crashes/#comment-30275 [...] posted on StockTradingToGo some strategies for dealing with quick market tumbles, and out of all of them I still stick by moving heavily into cash and taking a small short position [...] [...] posted on StockTradingToGo some strategies for dealing with quick market tumbles, and out of all of them I still stick by moving heavily into cash and taking a small short position [...]

]]> By: Zach http://www.stocktradingtogo.com/2007/07/27/investor-strategy-market-crashes/comment-page-1/#comment-30212 Zach Mon, 30 Jul 2007 00:09:25 +0000 http://www.falkininvesting.com/blog/2007/07/27/investor-strategy-market-crashes/#comment-30212 One of the problems with shorting an index to offset risk in CANSLIM type names is that one often has higher beta names long. So if I have $500,000 worth of names like <a>TSL</a>, <a>NVEC</a> and <a href="http://zachstocks.com/2007/07/fc-stone-group-inc-fcsx/" rel="nofollow">FCSX</a> and hedge that exposure by shorting $500,000 worth of SPY, I will not make enough on the short to make up for the loss in the stocks. Using the Russell 2,000 gets a bit closer but it is often hard to replicate a true hedge. Some of the stocks offer options so at times like this it may help to sell calls against a position (premiums are usually pretty high) but this only hedges so much of your exposure. I think liquidating many of your positions (especially any that show a loss) is your best bet. Damage control is what keeps you in the game long-term! One of the problems with shorting an index to offset risk in CANSLIM type names is that one often has higher beta names long. So if I have $500,000 worth of names like TSL, NVEC and FCSX and hedge that exposure by shorting $500,000 worth of SPY, I will not make enough on the short to make up for the loss in the stocks.

Using the Russell 2,000 gets a bit closer but it is often hard to replicate a true hedge. Some of the stocks offer options so at times like this it may help to sell calls against a position (premiums are usually pretty high) but this only hedges so much of your exposure. I think liquidating many of your positions (especially any that show a loss) is your best bet. Damage control is what keeps you in the game long-term!

]]> By: Rich T http://www.stocktradingtogo.com/2007/07/27/investor-strategy-market-crashes/comment-page-1/#comment-30182 Rich T Sat, 28 Jul 2007 15:30:11 +0000 http://www.falkininvesting.com/blog/2007/07/27/investor-strategy-market-crashes/#comment-30182 Personally I love shorting and put buying. Not to say I love a bad market but this does make it easy. :eek: Personally I love shorting and put buying. Not to say I love a bad market but this does make it easy. :eek:

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