• 0 Posts
  • 78 Comments
Joined 1 year ago
cake
Cake day: June 16th, 2023

help-circle

  • You bet on a company in a specific market and hope it goes up. Then you diversify another investment into this specific market, but in multiple companies. But you short them a little. First case, company go up, wins go up. Second case, major desaster tanks the whole market you equalize the dumping single company investment with the short in the market. Lost nearly nothing.

    Hedging is about recognizing investment risk and mitigating it. That being said, hedging is not really a working strategy, it just has lots of media coverage. Hedge funds leverage a good story to convince investors to give them money to manage. They earn from managing that money without carrying three y risks. The broker always earns.

    If you want you invest money with limited risk, broad market index funds area the way to go.














  • Trouble as in I’m in trouble if I do. I’m a formally educated it security engineer running my own incorporated software and infrastructure company. Firstly: people just hear “computer guy” and their second thought is “he can fix my stuff”. So I stay near to the truth and simplify it: I’m a theoretical electrical engineer. Boom, instant bored face and they leave as fast as they can. My neighbors love me, but I haven’t fixed a single of their computers in decades.

    Also pro tip: the wife has the same qualifications as I, so she fixes her family’s stuff herself. My job is to lug stuff and the kids around at home.