I agreed with you on this until I thought about how Congress might muck up the really important issues. Now, I'm totally in favor of political...
Your tax bracket has nothing to do with it as long as you're investing the money in CDs, short-term capital gains, or short-term dividends (and...
Thanks. It's always nice to find another thoughtful person Yes, although the effects can subtle depending on two broad factors. First, the...
The real reason to not pay down the mortgage is two-fold: 1) The risk-weighted after-tax return on trading exceeds the after-tax cost of the...
Please don't take this as a smartass answer, but if you have a 10% chance of winning only 4 units of profit and a 90% chance of losing 1 unit,...
I'd say that a "trading system" provides automatible, non-discretionary answers to the following 5 decisions: 1) Selecting which market(s) to...
You might start looking at cross-correlations with lags of weeks, months, even years. I recall Victor Niederhoffer talking about this with...
The reason that many gamblers will likely make poor traders is that their risk-seeking utility curves encourage them to undertake negative...
As a fallback, you can use Google to search ET for attachments of a given type. For example, the search string: This search returns hits to...
Yes, you're right, perhaps I've been too narrow in my examples. Using options to limit the downside certainly hedges risk. The Long + Put...
First, thanks for your intelligent replies -- it's always nice to converse another thoughtful trader. I do agree that balancing the baskets is not...
That's not an easy question because an IPO'ed company can suffer many fates that pull it off the radar screen (M&A, delisting, being taken...
Yes, because wage is always a spectrum unless constrained by law. But whether this drop is good or bad is less clear. Downsides: 1. Some...
Four reasons: 1. The number of potential voters who earn minimum wage vastly exceeds the number of business owners who might have to pay...
You say its not a challenge, but then you go on to say: This sounds like the epitome of a challenge to me.:) What you suggest is a very...
This is a real challenge. On the one hand you want the short basket to be similar enough to remove market/industry risk factors. On the other...
It's true that electronics have deflationary pricing, but they are not a true example of deflation in an economic sense. True deflation affects...
This is probably the most insightful comment in terms of handling big shocks. Avoiding 100% commitment to a market that could experience a big...
PCA would help one understand the small and medium-sized risks by revealing the historically dominant sources of covariation among various...
No, because: 1) melt-downs can move all the hedges in the same direction, 2) markets can hit trading limits that prevent a timely exit or...
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