Hedging for beginners

Wouldn’t recommend hedging for long term investing. Figure out your aggressive allocation and a conservative allocation. If you get worried go to your conservative allocation. Meaning if you’re a 30y old and are 100% equities and you get nervous then just go 80/20. Never try to fully time the market but changing your allocation is ok. That way if you’re wrong and markets keep rallying you’re still participating. If you’re right then you reduced your risk and won’t be down as much.

I have VOO in my Roth. So I have VTI and VONE in my brokerage. Not sure if that’s the kind of hedging you are looking for though.

My long winded answer:

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Is hedging necessary if you are a long term investor?

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Absolutely not.

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If so, how is the best way to hedge individual stocks or SPY to lock-in gains?

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There’s no need to lock in gains unless you need the money. That is, IF you had a reason to invest and still have a reason to be invested in any given equity.

If you are a broad market ETF investor just continue to buy. Hedging is timing the market. Full stop. Almost no one succeeds in doing so.
Example: Buffet went all cash in February and never bought back in.

I bought Nebius at $30, 25, 45, 30, 20.
Do I need to sell at $130, 140? No.
Why? Because I’d be comfortable initiating a position at those prices.

Am I scared if it goes to $80? Not particularly. I simply sell covered calls and collect premiums. That’s my “hedge” for a frothy market.

Now if he is is really committed and watches this shite all day and starts seeing clusters of Put Sweeps hitting the tape Above the Ask… yeah.. hedge then