Posts in Trading

Career Risk

My friend Sean penned this piece for Medium.  Definitely click over and read it. If you are interested in becoming a trader, you might want to read it.  Back in 1986, when I decided to quit my job at 3M …

Bitcoin is a Teeny Market

tip of the hat to @twaintwain for the image. One of the things that people trading Bitcoin think is that it’s a huge market.  They look at all the volume, the ICO’s and all the press and confirmation bias skews …

The Superhuman

I had to share this video. Mike Byster is a friend of mine from the trading floor. Originally, he worked on the floor clerking for his cousin Norm Byster (NBB). Norm used to trade em up and Mike counted his cards …

The Human Crisis in Finance

When the electronic age was ushered into financial markets, no one really knew what the knock on effects would be.  The Big Bang happened in London in 1987.  Ten years later, CME introduced the e-mini S&P.  It was ridiculed at …

Sunk Costs and Investing

One of the hardest decisions to make when you are investing is whether to do the next round or not.  The first seed round is relatively easy compared to the next rounds.  The seed round is based on some data, …

When You Have No Plan

My wife and I were chatting the other night about the beginning of our marriage.  When you hit the 30 mark, you reflect a little.  One of the things that we didn’t have was an exact plan.  We had notions, …

Two Markets With Parallel Paths

Right now if you read about the venture capital market, or if you read about the stock market you will notice similarities. Both have a lot of capital in them chasing return. In VC, that drives up valuations and dampens …

Is the Future Direct Listing? IPO? ICO?

The NYSE petitioned the SEC to allow direct listing of stocks. The NASDAQ already allows this practice so it’s probably a fait accompli that the NYSE will be granted permission. Thanks to my friend Dan Ratner for bringing it to …

Voice Over Trading

I learned how to trade in the open outcry era.  We used our voices.  The people that were the most aggressive won.  Sometimes it meant having a big body.  In certain pits, traders were pretty beefy.  I remember slamming my …

The Blockchain, Cryptocurrency and Trust

Trust is one of the more fleeting things in human society.  It’s why lawyers exist.  Think about whom you really trust in the world.  Think about how many people that you do business with in your life that you would …

When Things Screw Up, Tear It Down

Startups at seed stage execute on a hypothesis.  They either think they see a problem they are solving and fill the gap, or they create a new market that didn’t exist before.  No matter what they do, they often struggle …

Stock Indexes and Success

Today the jobs number will be released. It’s probably going to be a good number. The number has nothing to do with Trump being elected. He’s only 7 weeks in. Ramping up hiring takes a lot longer than that. Since …

Trump Loses on Department of Labor Law

“With or without regulation by the federal government, the principle of ‘clients first’ is here to stay.” – Jack Bogle When I read the Department of Labor was wading into financial regulation, my first inclination was dread.  I didn’t trust …

Bitcoin Trading Volume Falls Off A Cliff

The exchange space in Bitcoin has been interesting.  I have been observing it with a keen interest.  Exchanges have been interesting to me my entire life.  I was on the board of the worlds largest exchange.  Everyone thinks exchanges are …

10,000 Bitcoins For a Pizza

The first transaction in bitcoin was 10,000 bitcoins for a pizza.  Hope it was Chicago style.  It reminds me of the assignment Craig Wortmann gives students.  He has them barter a pen for a few weeks to see what they …

The Amount of Venture Debt is Increasing

My whole life, I have watched macroeconomics.  It is the “dismal” science.  But, as a futures trader, you could make some money by paying attention to macroeconomics and trying to piece together what you thought would happen.  A lot of …

Before You Get Too Cheery About the “Trump Rally”

I subscribe to the Tastytrade newsletter and read it every morning.  I don’t always agree with them, but they always have some interesting ideas and things to think about.  Being an old trader, I always keep an eye on the …