Image Source: Pixabay

In the trader tip video, Chris talks about the Treasury bill ETF BIL and the importance of protecting and saving your capital. We don’t believe anyone should be holding assets that are falling in value. With that being said, the Buy & Hold strategy is just that. You’ll buy it and hold it, and you can be in a 20% to 50% or more drawdown with your capital which goes against everything we as technical traders and investors are doing.

The BIL ETF is a one to three-year Treasury bill note and is pretty much like a cash position. It pays dividends and a little bit of money but doesn’t dramatically fall with the stock market. Overall, cash is sometimes the best position to be in when we are in the market conditions we’ve seen over the last few months.

Video Length: 00:02:12

More By This Author:

Does Selling Put Options During A Market Downturn Provide A Safety Net?
Crude Oil Collapsed Below $100ppb – Has The Us Fed Broken Inflation?
U.S. Dollar Trending Higher As Primary Global Reserve Currency