The "Free" Trade/Hedge - Complete The Story For Retail Investors

Read? The "Free" Trade/Hedge

Review your investing diary or trading journal.

Have you noticed if your entry is good, better, best - your chances of getting out unharmed were greater?

It never was about market timing; its about risk management.


OK, not everyone trades with 10:1 leverage to appreciate the nuance I've just said.

Let's illustrate with an example:

If you have entered Keppel at $2, at the current price of $6 plus, it feels like a "free" investment. (If you let this position turn into a loss you have no one to blame but yourself)

Contrast it if you have bought Keppel at $10. 

Making less and losing money not even close to "same same".


Using dividends or entry price as panadols - your choice.

CW8888:

We are more likely to believe in Mean reversion theory in long run over market and economic cycles of Boom and Doom. In practice; how does one look like?

Using dividends or entry price as panadols - your choice.


Mean reversion!

Dividend or Entry price or BOTH?