Learn To Trade As A Hedge

learn to trade as a hedge

Originally published 8 February 2012… The sentiment remains the same… If not worse.

Learning simple trading techniques can be an extremely effective way of mitigating the risk and volatility of a shifting job market.  I spent a lot of time this week looking at the “improving” employment data, reading about the “surprisingly strong” state of the U.S. economy and, yet, talking to friends and former colleagues all of whom are nervous about keeping their jobs. 

I’m not interested in attempting to parse the madness.  Local and national “professional” media do a sufficient job of pushing the public closer and closer to slitting its collective throat.  I prefer to share a couple of reasons why spending time learning to interact with the securities markets can be an effective salve for the very real apprehension facing employees.

  • First, trading need not be an all or none activity.  As with other things, the market is impervious to your status as full-time trader, part-time trader, professional, amateur, or hobbyist.  The market does what it does and your interactions with it determine your level of success (profitability).  Novice or veteran… idiot or savant, the market is UNAWARE of your status.
  • Second, trading is an exceedingly learnable SKILL.  No matter who you are or what your background is, I’m certain there is something in your life that you once considered insurmountable…riding a bike, driving a car, public speaking, managing a team… that you now consider a mindless activity.  I contend that ALL trading strategies with successful, long-term track records are, at their core, simple.  As a result, I emphasize simple, logical approaches to short-term trading, the mechanics of which are, by definition, easy to grasp.  Thus, the strategies will become second nature with sufficient practice.
  • Finally, as any current (or former) resident of South Florida will tell you, the best time to develop an emergency or “backup” plan is BEFORE its needed.  I know of several traders (including myself) who began developing their trading approach and style while working with a corporate employment safety net.  Because of the fractal nature of markets, starting with swing trading and moving to day trading is a natural progression requiring only an increase in Emotional Capital™.

So take a look at trading… at worst, you’ll figure out that you hate it… or that its not for you… 

Or maybe, you just might find an escape route.

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