Today let's talk about hedging!! Does anyone like to play both long and short positions?
Keeping pets is like holding both long and short contracts.
Cats represent long positions, catching mice symbolizes price increases and profits; dogs represent short positions, being naughty and causing price decreases and losses. When a cat catches mice successfully, it reaps rewards, while a dog causing trouble results in losses. Both can coexist and balance each other out, much like contracts responding to price fluctuations.
In terms of risk management, a litter box and scratching post are the cat's stop-loss tools, while a chew toy is the dog's profit-taking measure, which can reduce losses. When adjusting flexibly, if the cat is not in good condition and is not actively catching mice, resources will be reduced for the cat and increased for the dog; if the dog performs better, more attention will be given to the dog and less to the cat.
Before raising them, one must understand the habits of cats and dogs and the experiences of predecessors, similar to market analysis; after raising them, one must constantly monitor the pets’ health and behavioral changes to timely adjust their care methods, akin to adjusting positions based on market trends.
I believe that while the dual-position strategy has advantages such as reducing risk and improving capital efficiency, it also demands a lot from investors. It requires precise market analysis and judgment skills, and one must be decisive and calm when adjusting positions; otherwise, one may fall into difficulties due to misjudgment or hesitation, making it not a strategy suitable for all investors to try lightly.
