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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (45457)	12/2/2021 10:36:57 AM
From: Qone0	4 Recommendations Recommended By ajtj99 bull_dozer Jacob Snyder Sun Tzu Read Replies (1) \| Respond to of 97932

I don't hedge. I don't invest in the markets. I only trade them. So I have nothing to protect for a long term capital gain. I don't care about taxes, they are what they are. But if I was going to hedge, the future that comes closest to the sector your investments are in. Futures have about 10 to 1 leverage, they expire every quarter. So there are going to be taxes no matter what. But futures are taxed differently. While short-term capital gains from stocks or ETFs are taxed at your ordinary income tax rate, futures are taxed using the 60/40 rule: 60% are taxed at the long-term capital gains tax rate of 15%, while only 40% of your short-term capital gains are taxed at your ordinary income tax rate.

To: Jacob Snyder who wrote (45457)	12/2/2021 10:39:16 AM
From: rimshot	Read Replies (1) \| Respond to of 97932

Jacob - I recommend you do not get involved in using any futures contract for a hedging strategy, since you apparently based on your several posts today know nothing about such instruments ... there are other ways to go about hedging besides using futures ... I can give you some educational material offline via PM if you are seriously considering an actual hedging practice FYI, not trying to get into your personal biz in addition, there are trading books on hedging, and how to go about it that is all I have to say in public on this topic FYI #2 - Larry M.'s book on options - amazon.com 2011 brief YouTube by Larry on How to Hedge with options - youtu.be Buying index options or VIX options are cost-effective methods for insuring your portfolio against downside risk, says option trader Larry McMillan, who shares tips for choosing the right option to buy.