Buy and Hedge [Book Review] + I'm Giving Away a Free Book

Hey Traders/Investors -

I was blown away by the amount of feedback I received from my readers telling us what to teach in our next educational event that will be on November 20th-21st. (Big shout-out to Jonathan Lien, Kumaresa Serretharan, Stephen Yu, Pastor Rick Christy, Elmer Diaz, Walter Nichols, Amye Shelton just to name a few that sent over a TON of feedback :) 

One of the top educational topics requested was learning how to hedge winning/losing positions.

Which is fitting for me because I just finished a book called "Buy and Hedge: The 5 Iron Rules for Investing Over the Long Term " written by two investing luminaries, Wayne Ferbert and Jay Pestrichelli (More on them in just a bit.)

So I thought I would share my thoughts on a book that I believe is a great read, especially for a beginner - intermediate level investor like me. 

This post is going to be kind of lengthy; if you don't want to read my ramble, just know that I am recommending you to buy this book.

Click here to buy it on Amazon 

My top seven take-a-ways:

  1. Building hedge strategies with low-cost index funds (one of my favorite highlights from the book that is not widely covered)
  2. Retail investors (you and me) for a long time have lacked the education/access to tools to hedge that are now readily available 
  3. Learn, master and apply the 5 Iron Rules of Buy & Hedge
  4. How to generate dividends off your long positions
  5. Most importantly; using options to strengthen your positions and that allow you to sleep at night with today's kind of volatility (government shutdown anyone?)
  6. How using options is like buying insurance (great analogy for what this book is all about)
  7. KNOW YOUR RISK METRICS

I tend to be a deep value investor (buy good, solid companies in industries that I understand when the price/book is low and just wait, wait, wait until it goes up) and this book really opened my eyes to see that there is a hybrid to that matured strategy.

As recently as 15 years ago, methods for hedging positions were reserved for the professional community only. 

With advancements in technology, my Dad can now learn how to use instruments like options to stay asleep at night instead of checking his Scottrade account after our trusted government officials decide to shut down part of the government. 

But why should you listen to Wayne and Jay? I'm glad you asked :)

For anyone that has viewed one of the webinars I have moderated (and there have been a lot of them) I preach researching the person that is teaching.

Why? 

Because now-a-days the internet has given a megaphone to every Tom, Dick and Harry that proclaims they are an expert. Which is why we started Marketfy in the first place, but that topic is deserving of it's own blog post. 

Wayne Ferbert and Jay Pestrichelli ARE two people I believe should have such a prestigious title. 

Co-founders of ZEGA Financial, Wayne and Jay performed a long stretch as higher ups at TD Ameritrade, mainly as product guys. 

This was a bonus for when I reached out to them to review their book and get an interview for my readers. I had no idea that they were the ones, for years, to attend trade shows, field customer's calls and truly live through their retail traders pain and tribulations (Did someone say Dot Com bubble?)

That's what is so unique about this book. 

It's written by professionals, for retail traders, by guys that actually understand retail traders. Creating a great read on an evolving investing methodology. 

At the end of the day I see way too many of us not understand risk management. I'm not talking about mastering a strategy built for professionals. I'm talking about putting a couple of tools in that belt of yours, allowing you to manage a trade that goes against you. 

Better put: Buy and Hedge.

So I challenge you to get this book and do what the majority of the population is not, making money work FOR them. 

Your, looking for the next book to review, president -

Kyle Bazzy

Kyle@marketfy.com

PS - Love you Dad :) You really have taught me everything I know. 

PSS - Did you make it all the way down here? That shows dedication, and I reward dedication. 

Call Marketfy's office number, 248.419.1784, tomorrow (Friday Oct. 4th) after the open and ask for head of marketing (her name is Sarah). 

Then tell her what kind of trader/investor you are (I want her to do A LOT of market research) and you will get a copy of "Buy and Hedge" for FREE!

We will pick the winner at random. Help us, help you! 

Posted to Learn How to Use Marketfy P… on Oct 03, 2013 — 7:10 PM
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