– “Number one rule of Wall Street. Nobody… and I don’t care if you’re Warren Buffett or if you’re Jimmy Buffett. Nobody knows if a stock is gonna go up, down, sideways or in f*** circles. Least of all, stockbrokers, right? It’s all the fugazi. You know what a fugazi is?” – “Fugayzi, it’s a…
It’s All The Fugazi Part I: Hyperinflation
System Design Part III: The Four-Legged Chair & The Four Horsemen Of The Trading Apocalypse
Welcome to the third and last installment of the System Design series. With the two previous parts in hand, the first being Demystifying Systems (July 2018) and the second being the MCO Framework (August 2018), you are good to take the first steps towards building your own successful system. In the first edition, we demystified…
System Design Part II: The MCO Framework
Last July we released the first part of the System Design series: Demystifying Systems. Now that systems, in general, are no stranger for you anymore we can handle how to put together a trading system, one that can easily be a core position inside your portfolio. If you think that building your own successful system…
System Design Part I: Demystifying Systems
Therapist: “Ok, tell me your problems.” (grabs a pen and a notepad) Trader 1 “I’m in a situation where I have many trades going on all at once and I’m feeling like throwing spaghetti on a wall to see if it sticks.” Trader 2 “Last week I got 10 naked puts running on +$100 stocks….
Selling Naked Puts, It’s Naughty yet Nice
In this month’s newsletter, we’re unpacking one of the finest strategies on the Street. Its strengths are many, its weaknesses few. And its proper deployment will bring good fortune to you. Now that we’ve sated our inner poet let’s get down to business. Today’s strategy is a man of many names. Some call him the…
Compounding: The Eighth Wonder of the World
Compounding commands our attention for this month’s newsletter. It’s a powerful force. So powerful, in fact, that mathematical genius Albert Einstein is rumored to have said, “Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.” Now, whether Sir Albert is actually behind…
Option Pricing
This month’s topic can get mundane in a hurry. Indeed, the world of option pricing is littered with mind-numbing mathematics and sleep-inducing theory. But fear not! We’ve taught the masses for years and have created clever ways for breathing excitement into an otherwise torpid topic. Today’s goal is simple – to help you understand just…
How to Protect Your Retirement
Millions of people invest in the stock market in hopes of growing their nest egg large enough for a comfortable retirement. The appeal of stock investing is simple: it offers much bigger returns than your everyday savings account. To wit: Since 1926 the S&P 500 has generated an average annual return of 10%, according to…
Market Cycles
The stock watching class is vast and varied. Some believe markets follow a random walk. Predict the future? Nonsense, they say! Forecasting the market’s next move is like trying to guess the direction of a drunk’s next step as he stumbles down the alleyway. It’s a fool’s errand that makes a monkey of the guesser….