Archives of “January 18, 2019” day

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Federal Reserve Raises Discount Rate

  
Analysis, Economy, Education, US Market
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breaknnews

The Federal Reserve Board on Thursday announced that in light of continued improvement in financial market conditions it had unanimously approved several modifications to the terms of its discount window lending programs.

Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve’s lending facilities. The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy, which remains about as it was at the January meeting of the Federal Open Market Committee (FOMC). At that meeting, the Committee left its target range for the federal funds rate at 0 to 1/4 percent and said it anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. (more…)

Bulls Make Money, Bears Make Money, And Pigs Get Slaughtered

  
  Education

So don’t get greedy. If you’ve used technical analysis to project a price target and the stock is currently trading at that level, place the sell order and do not change it. This applies to both long and short positions. He who believes that they can squeeze more return out of their trade — the inexperienced trader — is often compelled to sell at a smaller gain. Remember that any profit is a good profit.

Conquering your emotions

  
  Education
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When a trader experiences the emotional roller coaster associated with real time trading, he soon learns that, no matter how good his system is, he will need to conquer his emotions if he is going to be able to follow it. But, a master trader is also a master of his emotions. Again, this means that he must be willing to address any issues he has that create emotional states that cause sabotaging behaviors.
Working on conquering emotions can be done on one’s own if the trader is well balanced and does not have moderate to serious emotional issues to address. But, if not, he must find an outside resource to help him resolve his emotional issues.

5 Quotes From Market Wizard Jeff Yass

  
  Education
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“The basic concept that applies to both poker and option trading is that the primary object is not winning the most hands, but rather maximizing your gains.” – Jeff Yass

I’m not sure whether I learned this concept about trading and then applied it to poker or if it happened the other way around. Either way, this is something that has always been at the forefront of my mind with respect to both. My goal in poker is never to win the most hands, but to make sure that the pot is as large as possible when I do win.


I really liked that Yass described situations in poker where you have nothing to gain from betting and the check/raise is the best play. This is a concept that I have always had a strong grasp on. There are many situations in both trading and poker where pushing all of your chips in is not the optimal move in terms of long term survival. I need to keep that in mind.

“I learned more about option trading strategy by playing poker than I did in all my college economics courses combined.” – Jeff Yass

I often joke about all the things I didn’t learn in college. This is an interesting take on that. It makes me question whether there is some aspect of my life that I could apply to trading and improve my performance. I think that it can be broken down to the fact that I simply think different than normal people. This is why things like location independent work, the paleo diet, and trend following are so interesting to me. (more…)

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