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Tips for surviving a correction
#10
[/quote]

Good post Mike.  When you have time, a good contribution to this thread might be how to hedge your port.  Nothing complicated (although I'd learn that if it's worth it).  I realize one can just buy a SPY put and watch it go worthless.  
/quote]

First off, I am a chartist by nature and only trade fundamentals within the DGI concept. If it moves, I can usually trade it successfully. That said, this is how make money on a down move, not really considering hedging becausing the ratio is miles away from a 1:1 true hedge. That's too expensive.

What isn't expensive is buying VIX calls when volatility is very low. The first chart shows what happens when VIX is in 12-13 area, it goes up every 4-6 months when you can ring the register. The 2nd chart is a period where VIX just keeps on sliding and my calls (and the money I paid) evaporate into thin air. Chart 3 shows SPX for that same time period, making big money here so the VIX call expense is quickly and easily erased from my mind. There is a symbiotic relationship to the market.

I have always been cognizant of having several various cash flow going at once. I'm not rich but at 60 I want for nothing, still work, my wife is a crossing guard. Until I retire (begin collecting at 62) it goes like this, I get paid on alternating weeks, my wife gets paid on the other alternating weeks, another week my rental checks come in and dividends get dripped. At 62, I will add SS to the cash flow and at 65 my wife collects another 50% of my benefit.

After listening to the old Germans my entire life saying it's not how much you make but how much you keep that matters...simple works for me.

Good luck to all!


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Messages In This Thread
Tips for surviving a correction - by fenders53 - 02-25-2020, 07:56 PM
Tips for surviving a correction - by vbin - 02-26-2020, 03:09 AM
RE: Tips for surviving a correction - by ChadR - 02-26-2020, 09:20 AM
RE: Tips for surviving a correction - by NilesMike - 02-27-2020, 07:57 AM
RE: Tips for surviving a correction - by Otter - 02-27-2020, 01:58 PM
RE: Tips for surviving a correction - by EricL - 02-27-2020, 02:09 PM
RE: Tips for surviving a correction - by divmenow - 02-27-2020, 02:28 PM
Tips for surviving a correction - by vbin - 02-27-2020, 03:19 PM
RE: Tips for surviving a correction - by divmenow - 02-27-2020, 03:55 PM
RE: Tips for surviving a correction - by vbin - 02-27-2020, 04:05 PM
RE: Tips for surviving a correction - by kblake - 02-27-2020, 04:08 PM
RE: Tips for surviving a correction - by Otter - 02-27-2020, 04:09 PM
RE: Tips for surviving a correction - by Otter - 02-27-2020, 06:15 PM
Tips for surviving a correction - by vbin - 03-01-2020, 08:15 PM
RE: Tips for surviving a correction - by Otter - 03-03-2020, 01:23 PM
RE: Tips for surviving a correction - by kblake - 03-03-2020, 01:51 PM
RE: Tips for surviving a correction - by divmenow - 03-03-2020, 02:25 PM
Tips for surviving a correction - by vbin - 03-03-2020, 03:45 PM
RE: Tips for surviving a correction - by vbin - 03-03-2020, 04:33 PM
RE: Tips for surviving a correction - by Otter - 03-03-2020, 04:50 PM
RE: Tips for surviving a correction - by divmenow - 03-04-2020, 08:05 AM
RE: Tips for surviving a correction - by Otter - 03-04-2020, 09:52 AM
Tips for surviving a correction - by vbin - 03-04-2020, 10:24 AM
RE: Tips for surviving a correction - by Otter - 03-04-2020, 05:36 PM
Tips for surviving a correction - by vbin - 03-04-2020, 05:33 PM
Tips for surviving a correction - by vbin - 03-05-2020, 10:03 AM
RE: Tips for surviving a correction - by vbin - 03-05-2020, 12:49 PM
RE: Tips for surviving a correction - by Otter - 03-05-2020, 01:02 PM
RE: Tips for surviving a correction - by Otter - 03-05-2020, 01:08 PM
RE: Tips for surviving a correction - by vbin - 03-05-2020, 02:03 PM
Tips for surviving a correction - by vbin - 03-05-2020, 03:06 PM
RE: Tips for surviving a correction - by divmenow - 03-05-2020, 03:53 PM
RE: Tips for surviving a correction - by vbin - 03-05-2020, 05:43 PM
RE: Tips for surviving a correction - by Otter - 03-06-2020, 09:58 AM
RE: Tips for surviving a correction - by Otter - 03-06-2020, 12:37 PM
RE: Tips for surviving a correction - by Otter - 03-06-2020, 01:07 PM
Tips for surviving a correction - by vbin - 03-06-2020, 01:12 PM
RE: Tips for surviving a correction - by Otter - 03-06-2020, 01:17 PM
RE: Tips for surviving a correction - by Otter - 03-08-2020, 05:46 PM
Tips for surviving a correction - by vbin - 03-08-2020, 06:37 PM
RE: Tips for surviving a correction - by divmenow - 03-08-2020, 07:19 PM
RE: Tips for surviving a correction - by divmenow - 03-08-2020, 09:18 PM
Tips for surviving a correction - by vbin - 03-08-2020, 11:40 PM
RE: Tips for surviving a correction - by vbin - 03-09-2020, 12:18 AM
Tips for surviving a correction - by vbin - 03-09-2020, 12:47 AM
Tips for surviving a correction - by vbin - 03-09-2020, 12:54 AM
RE: Tips for surviving a correction - by divmenow - 03-09-2020, 05:49 AM
RE: Tips for surviving a correction - by divmenow - 03-09-2020, 07:08 AM
RE: Tips for surviving a correction - by EricL - 03-09-2020, 10:09 AM
RE: Tips for surviving a correction - by kblake - 03-09-2020, 08:05 AM
RE: Tips for surviving a correction - by kblake - 03-09-2020, 08:19 AM
RE: Tips for surviving a correction - by divmenow - 03-11-2020, 08:31 PM
Tips for surviving a correction - by vbin - 03-11-2020, 08:49 PM
Tips for surviving a correction - by vbin - 03-12-2020, 06:42 PM
RE: Tips for surviving a correction - by rayray - 03-13-2020, 04:50 AM
RE: Tips for surviving a correction - by divmenow - 03-13-2020, 05:37 AM
RE: Tips for surviving a correction - by divmenow - 03-13-2020, 10:07 AM
Tips for surviving a correction - by vbin - 03-13-2020, 08:58 AM
RE: Tips for surviving a correction - by kblake - 03-13-2020, 09:06 AM
RE: Tips for surviving a correction - by vbin - 03-13-2020, 10:00 AM
RE: Tips for surviving a correction - by Kerim - 03-13-2020, 10:17 AM
RE: Tips for surviving a correction - by EricL - 03-13-2020, 10:52 AM



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