Stock Exchange: Time to Batten Down the Hedges?

Stops or hedges? Both limit risk but in different ways. Which should be preferred? Does your choice depend upon the market?

Summary

Stops or hedges? Both limit risk but in different ways. Which should be preferred? Does your choice depend upon the market? And people are already confused by “batten down the hatches” (explained here). Does battening down a hedge mean tightening it or taking it off? I don’t know!

Jeff: Joining me on the Stock Exchange is my colleague Todd E. Hurlbut, CMT, Chief Investment Officer at Incline Investment Advisors, LLC. Todd is the creator of the Emerald Bay model featured in this column. He is known as “Trending Todd.” And yes, that is a hint about his trading style.

The Stock Exchange is all about trading. Each week, we do the following:

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