Chris Smith from CMC Markets: Investing with derivatives – how to spice up your investment portfolio.
I’m sure your better half loves you – you told them ages ago this was the case right? Sometimes the spark and the excitement of investing fades away also. Especially when the market pulls back, like what we’ve seen in 2018 and especially in October, you could be tempted to thing that the thrill was well and truly gone. Now it’s all about discipline and ongoing research and most importantly, patience! What if you could occasionally spice things up though?
Sure, we all know the market is cyclical and it will come right eventually. Heck, worst case you could always lean on the reality that if you contribute and invest regularly in equities, you’re buying more during times like this – that’s the magic of dollar cost averaging right there!
Derivatives, a spicy piece of alternative asset class you could have on the side. Retail and institutional investors alike can benefit from drops in the market via short selling, forward contracts and options. Now, you could simply use this as insurance to cover losses in your main portfolio, or you could exclusively trade in derivatives. The faster you go though…
Chris Smith from CMC markets joins Darcy and Tanya Ungaro to discuss:
– The equities market at the moment – what the heck just happened?!
– Trading vs Investing / when a trade becomes a long term hold
– Your attitude towards risk and your desire to build wealth
– Engaging in financial risk in a healthy way
Chris Smith is the General Manager at CMC Markets NZ for the last 10 years which specialises in OTC derivative products and technology for retail and institutional clients. He has more than 15 years direct investing experience, with a passion for the financial markets particularly equity markets but also commodity and forex markets.
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