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KrisAbdelmessih

Greedy people don't know they are greedy.Their mental accounting is forged from principles that happened to have served them. They consider it a virtue to extend their own mental GAAP

Explained to a learner in my DMs who underestimates the vega risk of a near dated option:It's true that the near term option's vega is not large. But that is

You've watched Queen Gambit and there's a little part of you that's saying "It would be fun to actually learn chess"I'm going to provide a few tips for getting started

Let's do dispersion trading for the uninitiated. The vets will need to bear with me, it's been 20 years since i traded index anything...but that actually shows why it's a

Locking up your $$ to save you from yourself is a sales pitch in some parts. I've said before:"Any argument that says liquidity is bad because it exposes you to

A very humble thought on math in trading. I say humble because I risk straw-manning quant (look, I have yet to meet an IYI type quant that Taleb would caricature.

Compounded returns experience "variance drain". This will be true if your bet size or allocation is a fixed percent of your wealth, savings, bankroll etcWas messing with some coin flip

In @Jesse_Livermore interview he mentions how exceedingly high valuations are increasingly dependent on liquidity or what he terms "networks of confidence". He refers back to prior work that shows how

Sunblock stock (SUN) makes 10% in sunny year. Loses 2% in rainy year. Umbrella stock (RAIN) loses 2% in sunny year. Makes 2% in rainy year.Assume:The year is 50% to

This addresses this sense from the learners that there is some magic money drawer in the options markets that opens when you understand options theory. Spoiler: there isn't. Options allow

Think aloud on the art/science of portfolio construction.It's an area of learning I gravitate to. Here's some* bird's eye heuristics* why I gravitate to it* practical implementations * a handful

Moontower Musing #37 How Many Heads In a Row To Be Kylie? Income Inequality Myths Longitudinal > Snapshot Personal Gratitude + Blind Luckrefs: @web@EconTalker @DQYDJHQ @robkhenderson@mjmauboussin @liveculdesac @MorningBrew http://bit.ly/2QLzPiE&n