I’ve been seeing a lot of important questions recently from amateur investors regarding some of the more advanced topics in the investing world. Many people have been taught about things like diversification and dollar cost averaging, but don’t really understand concepts like hedging, offsetting different kinds of risk, or shorting stocks. In my first article on this topic, I started to explain some of the basics of how to think about hedging, and explained concepts like market hedges and shorting stocks.
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A Guide to Hedging for the Amateur Investor: Part II

A screen displays trading information for stocks on the floor of the New York Stock Exchange (NYSE) in New York City on June 27, 2022. Brendan McDermid/Reuters
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