Often the terms hedging and diversifying are used interchangeably by traders.

You might hear someone say, you need to hedge your positions or you need to diversify your portfolio.

And in either case, we understand the overarching objective and goal as being the same.

Reduce risk inside of portfolio.

However, the means by which you might accomplish this and the manner in which you get there

be a hedging or diversifying or potentially combination of both are very different and require

better understanding of each. This week on the podcast, we'll unpack these two juggernaut concepts.

You're listening to the Option Alpha podcast from Option Alpha dot com where we show you how to

make smarter trades. Learn how the stock market really works and generate consistent monthly income.

Now, your host and head trader at Option Alpha dot com. Curk to pluses.

Hey everyone, this is Kirk here again from Option Alpha dot com working every single week to make

this the most popular investing podcast offered online because it's based on one thing

and one thing only and that's helping you consistently play smarter trades.

So again, thank you so much for tuning back into today's show and on today's show number 205,

we are going to be talking about hedging versus diversifying. We've used these concepts a lot

in the last 200 plus episodes here on the podcast and undoubtedly you've heard people talk about

the concepts of hedging and diversifying, but we want to really unpack both of these things so

that you understand really what each of these means because in our view, we tend to find that the

word hedge has been used quite frequently throughout financial markets and definitely through

financial media. In fact, it's used quite frequently for everything. It just has become this

catch all buzzword for everything, hedge this, hedge that, hedge that system and we still understand

the concept of diversifying, but we've now thrown in this other truly different concept around

...