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This Is Fu#$ed Up

Here is a young man who is clearly better than his peers being penalised for being better.

Like Jimerson, Hill attended Wilson Intermediate School and dominated the football field so thoroughly, the league invoked what came to be known as the Madre Hill Rule. Once Hill scored three touchdowns, if his team had a 14-point lead, officials banned him from scoring any more touchdowns. Now, for the first time since, the Wilson Intermediate Football League is using the Madre Hill rule again — to tackle Demias Jimerson.

Whilst it is only an anecdotal impression it would seem to me that this sort of thing is becoming ever more prevalent – witness the outcry of our somewhat bogus trader admitting on the BBC that the job of traders was to make money.

Such an approach really is the pull of mediocre wanting everyone else to be medicore like them.

This Is Fu#$ed Up

Here is a young man who is clearly better than his peers being penalised for being better.

Like Jimerson, Hill attended Wilson Intermediate School and dominated the football field so thoroughly, the league invoked what came to be known as the Madre Hill Rule. Once Hill scored three touchdowns, if his team had a 14-point lead, officials banned him from scoring any more touchdowns. Now, for the first time since, the Wilson Intermediate Football League is using the Madre Hill rule again — to tackle Demias Jimerson.

Whilst it is only an anecdotal impression it would seem to me that this sort of thing is becoming ever more prevalent – witness the outcry of our somewhat bogus trader admitting on the BBC that the job of traders was to make money.

Such an approach really is the pull of mediocre wanting everyone else to be medicore like them.

I Love A Good Disaster Film

More predictions of doom and gloom in Greece. The interesting thing about Greece is that that this is not the first time Greece has caused problems.

On a more pragmatic note this to me is a simple trading question – a loss exists and various governments and banks are prevaricating about taking this loss. Many have been overtaken by the common belief that if you dont crystallise the loss then it is not a loss. Nobody said people inside governments were very bright.

This is somewhat akin to the attitude that permeated Japan following the collapse of their financial system in the early 1990’s. As a result the Japanese market has been in decline for two decades. If Europe is not careful and if it does not effectively repossess Greece and force its inhabitants to confront the reality that you cannot have a lifestyle based around not paying taxes, tolerating corruption at all levels and then expecting the Government to pay you a pension equal to the job you never went to anyway. It is quote possible that Europe will lose two decades like Japan.

My vote for Greece is to let the Germans run it – then things might work…………

I Love A Good Disaster Film

More predictions of doom and gloom in Greece. The interesting thing about Greece is that that this is not the first time Greece has caused problems.

On a more pragmatic note this to me is a simple trading question – a loss exists and various governments and banks are prevaricating about taking this loss. Many have been overtaken by the common belief that if you dont crystallise the loss then it is not a loss. Nobody said people inside governments were very bright.

This is somewhat akin to the attitude that permeated Japan following the collapse of their financial system in the early 1990′s. As a result the Japanese market has been in decline for two decades. If Europe is not careful and if it does not effectively repossess Greece and force its inhabitants to confront the reality that you cannot have a lifestyle based around not paying taxes, tolerating corruption at all levels and then expecting the Government to pay you a pension equal to the job you never went to anyway. It is quote possible that Europe will lose two decades like Japan.

 

 

 

 

 

My vote for Greece is to let the Germans run it – then things might work…………

Really………WTF Is The Issue?

I have been reading some of the commentary about this particular interview with so called trader Alessio Rastani. Much has been said about the veracity of this interview whether it was legitimate or a well crafted hoax. Irrespective of any of this the commentary around it has been somewhat hysterical and completely misses the point.

The aim of being a trader irrespective of whether you are self employed, work for bank, hedge fund if you are trading your Great Aunt Mables inheritance is to make money. Much of the hand wringing over this interview has simply been because someone has articulated this view in public as if this was a great secret.

Trading is not a public service charity, we dont hug puppies, save whales or become semi orgasmic over the thought of organic lentils. We aim to make money – that’s it. We are completely responsible for how we perform, make money its our fault, lose money it is also our fault. Unlike the majority of the world we dont seek to blame everyone else for our failures.

As a life message every child should be told that the easiest way to help the poor is not to be one of them.

Community

I wouldnt join any club that would have me as a member – Groucho Marx

I’m not a community sort of guy – I don’t join clubs, I cant stand the notion of association and crowds of the great unwashed just make me reach for the valium and of course soap. So when the mentor program started I had no intention of it being a community – it was simply a way for me to fulfil my need to teach without drifting back into the morass that is academia. It served a selfish need of mine and along the way I met some interesting bods and one or two who suffer from the mental illness of supporting Collingwood. They are the rarest of beasts, Collingwood supporters who have their own teeth and a job.

However, I have noticed an interesting evolution on part of the Alumni section of the mentor forum and that is the sharing of trades. Any idiot can talk up a trade you just have to trawl the internet to see any manner of armchair experts rabbiting on about the next big thing that they happened to have discovered. The thing that amazes me most about these experts are that they are able to type and all since one hand is generally ensconced in their pants.

The trades on the mentor forum are different in tone and quality. For example the breakdown in copper was caught, as was the moves down in silver and gold along with the moves down in Asian markets. Unlike armchair experts these trades worked – in fact they worked so well that the one or two I missed and was alerted to by mentorees I took and they were profitable.

With looking a self sustaining ecosystem of traders has sprung up. It is interesting what happens when you are not paying attention.

Rogue Hormones

IF THE losses at UBS that surfaced this month were caused by a “rogue” trader, would that make his colleagues stable? Not if research being undertaken by John Coates, a neuroscientist at Cambridge University and a former derivatives trader, is anything to go by. His work suggests that hormones drive investment decisions to a far greater extent than economists or bank executives realise. When traders are on a winning streak, their testosterone levels surge, sparking such euphoria that they underestimate risk. When they are acutely stressed, the adrenal cortex produces a flood of cortisol, a hormone that can make them overly fearful and risk-averse.

The Economist

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