What is the best way to hedge your portfolio?

There are so many ways to consider when I read this topic. Here are some quick points to consider.

1. Hedge? Why hedge? Cost ultimately because you might not have conviction in your position, so perhaps the risk involved is too great and you want to reduce it. Like buying insurance, a bit is fine but if you buy too much, it doesn't make sense.

2. Diversification of Assets - gold, property, stock, options, crypto. All of it won't plunge at ago. If it does, the whole world will get hit.

3. Portfolio sizing - 3 positions in a stock will be 33.3% portfolio size. This is ok for a small time and initial investor where is amount invested is small. (Think 1k-10k, or 10% of your nett worth). 5-10 positions of sizing will lead to 10-20% of each position. (11-200k, 10-50% ofyour net worth). You get the idea. Again this isjust general advise and it may not apply to you.

4. Dollar Cost Averaging - buy a fixed amountof a stock at a fixed duration. Eg $1000 every month. This is regardless of the stock price. Studies have shown that DCA is better than timing the market. Timing the market will just boost or slam your ego.

5. Invest in a board based index like S&P with DCA and go to bed. You'll get average life results but hey, you might get results better than 50% of the world.

There's a lot more to discuss here but I'll keepit simple. Hedging is to reduce risk. The best way to hedge and reduce risk is through EDUCATION. It compounds through the years and best of all, you can invest, take a tech break and sleep soundly while you get wealthier in time. 

What do you all think?

How do you educate yourself?

@TigerStars@MillionaireTiger