TRADING TIPS

Another Way to Hedge Using an ETF

Hubert Senters here. In the last video talked about how to hedge in the same contract but different month when trading the 10 year note. You can also do this. You can get long or short TLT or TBT depending on which way you’re going. So in the same example we’re going to go through. I’m currently short the 10 year and I want to keep on going down. But oddly enough markets don’t just go straight down and straight up. They have adjustment periods. So we’ve caught a lot of this trade but now we’re taking a little bit of heat to the high side. So what I can do is I can go over here to TLT and I can get long TLT and I can ride it to $117, $118 maybe $120. And then when it runs out of gas and rolls back over I will exit, EXIT if I spelled correctly, TLT it will stay in the 10 year note trade as it goes lower. Now, first off this is the 10 year note and this is a 20 plus year Treasury ETF I shares. So it’s not going to be a perfect hedge but it’s better than nothing and it’s a whole lot better than ratcheting down the stop to down here to getting wiggled out of the stop-loss that will stop-loss being actually fulfill and admit and doing its job. And then the market going lower and it would be going ‘’I wish I still short, I’ll be making a lot more money.’’ That is another way that you can hedge your position in the 10 year note. I am going to be doing a special webinar Wednesday, May23rd at 8PM EST on how to properly trade bonds and how I made $6,281.25 in 10 days Risking only $312.50 total. GotoWebinar only has a thousand people that are allowed in at any given time. I wish it was more. But it’s not, so if you are interested in learning this type of information. Show up early. I’ll open up the room a little bit early. Good luck. Hope it helps. And I’ll see you on the next video. Hubert.

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