Buy and Hedge: The 5 Iron Rules for Investing Over the Long Term (Minyanville Media)
If you’re trying to build wealth, sharp market downturns are your worst enemy. And today, they’re happening far more often: in the last 18 years, the S&P 500 has experienced sixteen violent market declines. Institutions and professional investors have mastered powerful hedging strategies for dramatically reducing the risks of market volatility. Now, you can do it, too–and you can’t afford not to. In Buy and Hedge , two leading investment experts show how to apply hedging as part of a long-term
List Price: $ 29.99
Price: [wpramaprice asin=”0132825244″]
[wpramareviews asin=”0132825244″]
[wprebay kw=”investing” num=”0″ ebcat=”267″]
More Investing Products
Like a seat belt for the stock market,
If you’ve never thought about protecting your retirement investments or college fund by hedging (i.e. buying insurance), you should read this book.
If you’ve never thought about trading option contracts to REDUCE risk in your portfolio, you should read this book.
If you’re investment style is still based on buying a bunch of stock mutual funds and some bond funds and then refusing to look at your account statement for years on end, then RUN to your PC and order this book. And pay for express shipping.
Having worked with Jay and Wayne for a number of years, I know they’ve spent plenty of time in the financial service industry trenches and they have seen more than enough people screw up their futures by blindly adhering to losing investment strategies day after day.
They offer a conservative, time tested approach to protecting your capital. And while they will never win a writing award (enough with the pizza coupons already), they try hard to teach you what they know. This is not one of those cook books where the chef holds back an ingredient or two so you’ll continue to the buy the secret sauce.
It’s all there. One could argue it’s too all there at times as the simple strategy path they’re mapping will veer into foreign trading language and complex spread trading that’s beyond, I think, a beginner’s needs. Still, hang in there as much of what you’ll learn will save your investing butt in all kinds of market conditions.
I look forward to see what they write next.
Was this review helpful to you?
|Buy & Hedge – A must read for today’s market,
The timing couldn’t be any better for this type of book. If you aren’t at least a little uneasy investing in today’s volatile market than you should check your pulse. I am not a “sky’s falling” type of person but for anyone that has had to start over after 2001 and again after 2008 you definitely understand the value of defining your risk for every position you enter. I found this book to be an easy read. Each chapter and topic covered are nice and short making it easy to pick up and put down without having to start over. The authors also had some fun with the examples and stories used making it actually enjoyable to read and not boring and dry like so many other similar type of books. The profit/loss graphs made even some of the more complicated strategies easy to comprehend. Whether you are just beginning, been trading forever, trade a 100 times a year, have never sold anything you ever bought, trade for growth or trade for income, do it all on your own or trust someone else to do it all for you the “5 Iron Rule for Investing” and this book are still for you.
Was this review helpful to you?
|Expensive risk control,
This book will be educational for new investors and traders for the explanations on how to hedge investments and trades.
It also gives readers the five iron rules of Buy and Hedge:
1. Hedge every investment.
2. Know your risk metrics.
3. Construct a long term, diversified portfolio
4. Unleash your inner guru.
5. Harvest your gains and losses.
While the authors suggestion of controlling downside risk is great advice, it can be done much easier with simple stop losses than by purchasing expensive options that are sometimes 5% to 10% the cost of the stock or ETF itself. This really hurts the possible upside in any investments, you add in the slippage of illiquid options and commissions and the authors strategy gets very expensive. When simply cutting your losses when a stock drops below near term support or 5% would have the same basic affect as their hedging strategy.
Also in bear markets their strategy will of course out perform the S&P 500 because instead of huge losses because the put protection kicks in.H However in bull markets this system will under perform because put options will be wasted money on insurance in an up trending market.
I am all for managing risk in investments and hedging your bets, however I believe therr are much easier and more efficient ways to do this than the authors suggest.
This is a great read for educational purposes on how options hedging works and will help manage risk in a brutal bear market but it is time to trade with risk on in a bull market in a clear up trend.
Was this review helpful to you?
|