What is Hedging? (Stock Market 101)

So, what exactly is hedging when it comes to the world of stock market trading and investing? This is what we’ll be talking about in this stock market 101 video. Hedging is one of those strategies within the stock market that can be as simple or complicated as you choose to make it. Perhaps you’ve heard of hedge funds before? Those are a group of people that make “hedging” quite complicated. Other people, decide to take a much more simplistic approach to this strategy. Is one strategy better than the other? Perhaps. With that being said, much of how you hedge is going to depend on your personal strategies and risk tolerance levels. The core concept is very easy to understand as it essentially relies on only two words. From there you can get as complicated and advanced as you want. This topic is one that illustrates just why the markets can be so challenging and fun. You can talk to ten different investors about hedging and get ten different theories and approaches about it. This goes to show how there is no one size fits all approach. Everyone has their opinions and approaches to the market! We first just need to understand the basic idea of hedging and that’s what we’ll do here in this video.
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[@priyankakhandelwal3513]

Looked dozens of videos to understand this concept.. But yours is the best✨

[@claytrader]

Wow, thank you!

[@Uscreen]

I always hear people talking about "hedging" but I never quite understood it. This video helped me better understand that concept in a way that was really simple! Too often people try to complicate things. I appreciate you making this video! I'll definitely be tuning in for more. - Adaire

[@claytrader]

Glad I could help!

[@karimadigital1795]

this was so good thank you

[@claytrader]

Cheers

[@josepaez8390]

Thank yo so much Clay!

[@claytrader]

Sure thing!

[@costeagabi3900]

Also can be used on leverage..obv it is much more complicated but its a good way to increase your profitablity

[@claytrader]

Right.

[@sukhdevreddy]

very well explained. nobody can explain like this

[@claytrader]

Happy to help!

[@waseemasif1428]

very well explained

[@claytrader]

Glad you think so!

[@godspowertaye9072]

Thank you

[@claytrader]

You're welcome!

[@chrismancini2222]

Thank you. Explained very well. So if we hedge do we need to sell a put option on the same stock that we are placing a call?

[@claytrader]

Many ways to do it!

[@waseemasif1428]

very well explained, will appreciate to have some live working sessions to help

[@claytrader]

You should join my community then: claytrader.com

[@SirBennyblanco]

Hi, i just discovered your channel came across your video in my learning process and my question is, can any trade be hedged?

[@claytrader]

Yup!

[@SirBennyblanco]

@claytrader thank you, I'm still a noob I've blown up my account 2x and now trading with very minimal cash. Your video did inspire me to continue for my kids sake . God bless

[@claytrader]

@@SirBennyblanco I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/

[@keletsoMatlalaBouy]

Which reliable broker that u knw of dat allows hedging bro with a micro account?

[@claytrader]

Here: claytrader.com/webull

[@globalhomeofdailyimprovement]

Can you make a video on type of hedging

[@claytrader]

Thanks for idea. I'll see what I can do.

[@frankeez_world6000]

Hedge vs stop loss?

[@LawpickingLocksmith]

every idiot will find a new word for failure!

[@claytrader]

Thanks for idea.

[@ZakariyaLachhabe]

I have the mathematical formula for hedging between spot and future in binance

[@claytrader]

Cool

[@Monarch204]

Lol why you dry g@@claytrader

[@d.lindstrom7130]

You didn't tell how to "put options" and if they can go down more than the gain goes up?

[@claytrader]

I'm not sure what you mean.

[@sakhrcharchouri6247]

But using put options, wouldn't you have the right to not sell ? and thus when price goes up, you won't lose the 300 Dollars?

[@claytrader]

Sure, you don't have to sell anything.

[@_matis_]

Why shouldn't one "hedge" with betting less money on the trade? I am not trying to make fun or something, I am curious. You invest in both "directions", doesn't that mean that you have to invest more to have less risk?

[@claytrader]

Sure, it may require more, but it may not depending on how you divide up the funds.

[@Mike-sd6dq]

Can you win both ways if you hedge

[@claytrader]

Yes. Not all the time, but it's possible.

[@masslubricat9850]

you should be able to use a calculator for profitable trades 🙂

[@claytrader]

I agree. Basic calculator skills!

[@funny11744]

I STILL DO NOT UNDERSTAND. THIS IS THE 10 TH VIDEO !

[@claytrader]

What don't you understand?

[@funny11744]

@@claytrader I cannot apply what you show because you did not use an example demo or real.It is just a story for advance traders but you claim that is a basic example 101. Not useful .After 2 days of watching final I found few videos really 101 basic. Your video is just a story unusefull for me.Do you have another ?

[@claytrader]

right, this is a 101 video. A more advanced would be "how to apply"... I think we have different definitions of what 101 is.

[@leecampbell5736]

Not what I thought.... needed help with my overgrown holly bushes! JK ❤🤡

[@claytrader]

:-)

[@mikechafins5612]

Is that an Ohio State helmet in the back ground??

[@claytrader]

Yup!

[@rix5918]

So it’s a loose loose game , not smart to hedge

[@claytrader]

Why is it not smart to hedge?