Hedge My Bets.
This is the lesson of the oil massacre.
I got caught playing all offense, as the strategy reaped massive reward during the crash. I was very confident.
The oil market short squeezed 6% and humbled me leaning heavy short.
Also the stock market contributed that day and the day before to the pain.
Having a hedge on overnight helped greatly reduce stress.
I took off my hedge intra day, payed the price for it but was ultimately rewarded and saved by a huge reversal. After the spot of luck I put on a bit of long exposure for overnight. I am more short than long however.
Because I want to swing trade, I believe that it is prudent to reduce risk & stress at appropriate times by putting in a hedge which can be temporary or longer lasting.
In futures trading your money swings very quickly, sometimes it can be overwhelming. When you reach target goals and need some room to breathe but do not want to exit the market entirely, no harm can come of hedging your bets.
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