The market is risky. There is nothing about it that isn’t risky. Risk never changes, your understanding and ability to make decisions based on what you are likely to achieve does change. One of the most important things about risk is liquidity. Agoraphobia is a “Panic disorder with agoraphobia is an anxiety disorder in… Continue Reading
Tag Archives: liquidity
Post mortem of Mark Cuban’s post mortem on Facebook and the state of financial literacy.
(I talked to Mr. Cuban and he disagrees with what is below. Mainly that he never blames Wall Street. Also I edited parts away as to not take away from what is most important, the financial literacy problem. This isn’t about him or me it is about that and it was a distraction.) Mark Cuban… Continue Reading
The trading curve.
Fred Wilson, of AVC.com, has a good quick post about the start up curve. Trading is entrepreneurship without the bullshit. No employees and no clients. I really like this visual because if you turn your head enough it looks like a face hitting the wall. Not sure if that was intentional but that is how I would… Continue Reading
CME Group action late but at least is something.
I have not seen everything in the futures industry but I have enough perspective to know that the MF Global was a big a deal. I am not sure why the CME has not come to restore some faith. I have always seen the CME as having “midwest” values. To help your neighbor if you… Continue Reading
Thoughts on Gasparino/CME rumor.
When the MF Global thing happened I knew there were going to be changes. After talking to owner of a big IB the other day, I sensed his need for overall stability. As in, this cannot ever happen again. I remember in 2008 many traders using their account as a bank. At that time we… Continue Reading
Dangers of trading in small and distributed days.
There is danger in every type of market but nothing scares me quite like small and distributed days. Here are the dangers as I see it: Boredom: I lose that sharpness. Watching a market trade in a few dollar range is one of the more painful, energy sucking circumstances in trading. It provides a very false sense… Continue Reading
About the impending economic collapse.
Eric Jackson wrote about the financial world becoming “Bubbleheads”, read it here. In that article he takes an excerpt from an interview with Micheal Burry, one of those that predicted the housing bubble popping. Mr. Burry brings up the concept of a timer. First let me get something off chest and clarify my point of… Continue Reading
The most predictable part of trading is the blow up.
I apoligize for the tone of this post. As a trader your only job is to be able to trade tomorrow. If you do that long enough you will be make money. More specifically your job is to approach the next trade without the baggage of the previous trade or your life. When you get by… Continue Reading
When it is OK to chase the market.
There was a tweet after the AAPL earnings saying “do not chase it”. In all fairness to the tweeter I am not sure if they were speaking of AAPL or not. After a little probing to find out exactly what was meant by the tweet, at last the trail went cold. It is hard to… Continue Reading
Hedgers are to blame for rises in commodities.
It is always easiest to blame something you do not understand. My job as a speculator is to provide price discovery/liquidity/hedging. I get an opportunity, the key word is opportunity, to make money for providing this service. I am not different than any other business. What is a future? A future is a contract between… Continue Reading
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