Hedging is used to reduce the potential loss on any trade. If you have bought a stock, you can hedge this position by selling a futures contract on it, or buying a put on that stock. If the stock declines, you lose on your stock position, but gain on your futures position, or put position, thus reducing your loss. If the stock moves up however, your gain will be less than that of an unhedged position.
What you have to decide is how much of your equity position you wish to hedge and sell those many futures, or buy those many puts on it.