The Black Swan Challenge

Trader Mike is one of my daily reads.  If you are serious about trading or investing, he should also be on your list.  He is always a source of great ideas, information, and links.  Today he has done a beautiful job of describing the key elements of the Amaranth blowup.  To get a complete understanding […]

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The Risk Challenge

Can you specify the risk in your positions? What is the worst thing that could happen?  How much would you lose? How should you measure risk?  Is it a question of daily volatility?  What about absolute risk? You may have positions that seem uncorrelated to the market.  The positions may even seem negatively correlated (think […]

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A Trading Idea?

The always-entertaining Daily Options Report provided some commentary on a trading rule.  Take a look at the analysis by James Altucher (and the suggestion in the comments by Muckdog) and then we’ll add a thought. Link: STOP TRADING!. So NOW you tell me. Jim Altucher adds more info to the "buy the 1st trading day […]

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