Posts in Trading

The Foibles of Tax Bills

As the details of the tax overhaul come dribbling out, I noticed one yesterday that seemed odd.  There is a backdoor capital gains tax hike in the bill.  Predictably, there was some outrage since there seems to be something to …

The Free Market In Bitcoin

Free markets are a rarity today.  I mean truly free markets.  The stock and commodity markets are about as close as you get.  If you haven’t read Professor John Cochrane’s blog post about The Hard Road to Free Markets you …

Bitcoin Futures Are Coming. Are You Ready?

There are three ways to trade futures coming on Bitcoin.  The most under-reported one is Ledger X.  It’s not a true future, but a swap.  Technically they call it a SEF, or a “swap execution facility”.  Most of the time, …

Can You Short Bitcoin?

The exchange part of Bitcoin has always been sort of the wild west to me.  No standardization.  No real regulation.  Most of the big time trading is done bilaterally.  DRW’s Cumberland Mining in Chicago is the center of the universe …

The Woulda Shoulda Coulda Trade

Lately as the value of Bitcoin approaches new heights and the stock market continues to rally I am reading a lot about “if you invested x amount back in xxxx” articles.  This is what we used to call the woulda …

The Bitcoin Debate-Is It Overvalued?

Been watching the bitcoin debate back and forth.  There is a ton of confirmation bias in it.  If you own bitcoin, you think it’s going to the moon.  I have heard bitcoin holders tell me it’s still cheap. If you …

Hey, Want A Job Starting and Growing a Hedge Fund?

Recently, WLV closed on our second deal, CFX.  CFX is a two sided marketplace that trades illiquid assets. If there is anything that me, my partner Kenny and the majority of our LPs know is where to identify a trading …

The Bitcoin Future

Yesterday CME announced they were going to list Bitcoin futures.  I was surprised it took this long.  For entrepreneurs, it shows how slow big corporates move to make decisions.  It also shows that when they decide to move, they create …

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 …