put your money where your mouthis, page-69

swinger, I must admit that as a ST trader, I'm often guilty of not looking and basing my short term analysis off what the larger timeframe is saying

below I've updated the SDL weekly which imo has been giving us hints of
how healthy our shareprice has been



Also, for info purposes only and certainly no advice is being offered, below I've copied an article on Hedging, this is something that I've never heard being mentioned around here, and am not sure why more LT holders would not be practicing it.

Hedging

Hedging is a strategy that allows you to reduce the risk of negative price movements in your portfolio. Hedging refers to opening an equal but opposite position to offset any short term price movements in your physical shares. This is ideal for those who have long term equity portfolios in individual, company, trust or self managed super funds.

If you hold shares in your portfolio that you wish to protect from a potential negative price movement you can open an equivalent short CFD position to protect their value. If the CFDs are bought back after a decline, then the profit achieved from the CFD trade should offset the loss incurred on your physical shares. Hence if you do take an exactly equal opposite position to your equity portfolio then for every dollar in unrealised losses in the equity portfolio then the CFD portfolio will gain exactly that dollar completely neutralising the value.

CFDs are a flexible and cost effective way to protect the value of your physical shares while retaining your holdings. On top of this short CFDs incur no cost to maintain and in the case of equity CFDs they actually receive financing.

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if say around early April, if we thought the market may be in for a decline, a CFD position was opened to cover your entire SDL holdings, to date you would be about 14cents better off than not and only holding your SDL shares with no Hedging, food for thought