Thank you for the responses & advice. After reading your responses, I think that hedging is not what I'm looking for. Rather, it's knowing whether a significant down day followed by other down days is a signal of a correction or the makings of a full blown market crash.
I point this out because I would buy on a correction but would have the big temptation to sell/dump at the sign of a market crash. I don't want to suffer thru like the people who had SPY in '06 & '07 then saw their positions get cut 60% in '08 & '09 and then have to wait 5-6 years to get back to even.
Say the S&P drops 30 points tomorrow. Then it drops another 50 points the next day. Then the next day it still keeps dropping right after open. So I ask of the experience traders, market insiders & finance whizzes - what would you do?
Maybe I just keep buying as it keeps dropping? Hoping it'll reach bottom eventually?
I point this out because I would buy on a correction but would have the big temptation to sell/dump at the sign of a market crash. I don't want to suffer thru like the people who had SPY in '06 & '07 then saw their positions get cut 60% in '08 & '09 and then have to wait 5-6 years to get back to even.
Say the S&P drops 30 points tomorrow. Then it drops another 50 points the next day. Then the next day it still keeps dropping right after open. So I ask of the experience traders, market insiders & finance whizzes - what would you do?
Maybe I just keep buying as it keeps dropping? Hoping it'll reach bottom eventually?