Sunday, March 4, 2007

How to deal with the market crash?

This week, the market is going down about -5%. This is the worst week after 9-11.

I think most of the investors lost their money in this week. Fortunately, I got about 5% gain this week.

OK. Let's talk about something how to deal with market down.

Some guys advice you to buy more at this time. Some guys say you should sell. Whose idea should we listen?

Every investor should well consider his/her own risk before invest. But like me too, I lost a lot of money before I have positive gain now. We can't seriously consider how risk is unless we are in the market and we lose the money. That's why most of the individual investors lose money.

My strategy for dealing the market down is to buy enough QQQQ puts. The reason is my trading method can beat the market no matter it is a bear market and bull market. Although I will lose some small money when the market is going up, but the QQQQ puts is like some kind of insurance. And if the market crash is coming like 1987 (down 20% in one day), I still can preserve my funds well.

Google the keywords "portfolio hedging" for further information. Enjoy.

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