❓ Question#risk-management
T
Trading Wolf
Trader · · 485 views
How do I hedge my stock portfolio against market crashes?
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My long-term stock portfolio drops 20-30% during crashes. How do professional investors hedge against this?
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💡 2 Answers
✅Best Answer
PA
Price Action Pro
Trader · 15 days ago
Hedging options: 1) Buy Nifty put options (expensive but effective). 2) Maintain cash allocation to deploy at lower prices. 3) Hold gold as 5-10% allocation (rises in crashes). 4) Inverse ETFs (limited options in India).
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PA
Price Action Pro
Trader · 15 days ago
The cost of constant hedging erodes returns over time. A better long-term approach: maintain cash for averaging down + hold quality businesses you are comfortable owning through crashes.
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