I have seen too many posts here of people having upwards of $50K in their accounts, but still buying calls and puts. No hedging. Pr
Why is that? Is it because this is your play money and you don't care. Or you're so sure of your trade that you don't want to limit the upside? First person perspectives of people with ~20K or more will be helpful.
I understand this is wsb, but you understand I cannot ask this question in other subs like thetagang. Because I want to ask people who are YOLOing.
Genuine question – why are people with $50K plus accounts not hedging risk?
byu/strthrowreg inwallstreetbets
Posted by strthrowreg
36 Comments
I wonder the same thing tbh. It comes down to ignorance and gambling
What’s hedge
It’s because I’m taking overall small position sizes.
The folks here are more concerned with edging than they are with hedging brother.
If I buy a call how do I hedge? Buy a put? If I sell a put how do I hedge? Buy a put?
I just trimmed my hedges if that helps
Can you share what’s a hedge? I believe you clearly mentioned the YOLOing people with a 50k account want to double down ASAP, hedging If I understand will limit the growth and assume that the goals to grow are less than the expected.
My guess is that rather than hedging should be a risk management thinking and that implies there’s a game plan in place that most degens like myself easily broke in willing to win
We spend our entire lives enslaved to currency, this is our hope at creating generational wealth.
The idea of never working again, and having FU money is wonderful.
Go big or go the fuck home ![img](emote|t5_2th52|31224)
People would rather lose it all then potentially limit their upside if their yolo was correct
Noob investors….
Why gamble,
Why make less money when you can make more,
Why lose some of your money when you can lose all of it,
The reasonable trades don’t get upvoted,
Survivor bias,
You’re mostly seeing the wildest trades that get upvoted alot
If you aren’t confident enough to commit, why even take the trade? There are endless opportunities out there. But I also don’t know how to hedge lol
Cause I like risk
Because hedging costs money.
Sir, this is r/wallstreetbets 🦧
So you’re new here?
Sir, this is a casino.
without NVDA S&P500 would lose 20% of it’s rev. Without tech S&P500 would be down. No hedging is possible. We go all in!
I definitely should and that’s the smart thing to do but it also makes less. There is a Nash equilibrium and honestly I’m an addict
They are hedging against their wife’s boyfriend!! They know he will take care of the wife!!!
It’s often play money. My Robinhood acct is currently just 10% of my NW.
A hedge is doubt
Just do not be wrong
If you are you pay the price
Everytime you hedge you are doubting your analysis and taking money from yourself
You are taxing yourself for lack of confidence
Or maybe you are over exposed with to many positions.
You can be right 19 times but if those are small wind and you go big on one then you lose
A lot of people will tell you how to trade
Yet everyone has a diff strategy and we are all accountable for our own results
If I am in a position where I need to “hedge” I shouldn’t be in that position
Napoleon was famous for concentration of mass
Being all your artillery on one spot and make the most impact
Hedging is giving money away
Just my opinion
To answer the question simply
If I need a hedge I’m not in the right position and it’s time to sell and find a new opportunity that will run over time
Do you even get the point of hedging? What stock cost $50k and has trouble getting out due to liquidity issues??????
Options are hedges…
I actively hedge and typically sell options rather than buy them. I’m holding collars on QQQ and on SMH to ride out some expected volatility and protect my gains.
Wonder if an alcoholic thinks about the binge drinking they are about to go when they wake up Friday morning and say, this is a great day to bet my life savings on …..
It is wallstreet BETS
It’s gambling bruh
People don’t open spreads because when you hedge your bets you also limit your gains, and everyone thinks that they are the next DFV.
Fast money. I know im making a net negative bet. It’s like you can either go to the casino and play one $1000 hand or 10 $100 hands. Your odds are better with the $1000.
Yes I know it’s still net negative.
hedging is for pussies
Stonks only go up ![img](emote|t5_2th52|4276)![img](emote|t5_2th52|4276)![img](emote|t5_2th52|4276)
You are fucking gay. Fuck off
I can answer this. I’ve got way more than 50k and I don’t even know what the fuck you’re talking about
I’m always blindly over confident so no need to hedge. If I’m right, I’m a genius, if I’m wrong, it’s divine intergalactic alien intervention
You mean like weekly options instead of 0DTE?👀