The swings we've seen in the market of late have been nothing less than extreme -- one day they're down by historic lows and the next, they're leaping by record one-day gains.

Given the wild swings in today's markets, Dennis Gartman, founder of The Gartman Letter says it is very important, now more than ever, to stay hedged.

(Watch the full Protect Your Wealth interview with Dennis Gartman on the left)

"I've been hedging most of my positions. I have owned bank stocks but at the same time, I'm trying to stay as evenly balanced," Gartman said on CNBC Asia's "Protect Your Wealth" segment.

When it comes to choosing a hedging mechanism, investors are spoilt for choice these days thanks to a plethora of exchange traded funds (ETF) available. ETFs allow investors to be long on stocks on one hand, and short on the broad stock market, on the other.

As volatility remains a dark cloud hanging over global markets, Gartman advises investors to swallow the bullet and cut losses as quickly as they can.

"I think the most important thing that you can tell people is accept when you have losses...try to keep them as minimal as you can, cut them as readily as you can because this is a game of being able to be here six months from now...a year from now," Gartman says. "The only way that you can do that is to keep your losses small."

Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."

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