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why dismiss that part? Use it! It is an enemy inside your camp. Interogate it :), make friends with it. Analyze its behavior and you will be that much better off by knowing what mistakes the others are bound to make and how to profit from them.

Just to make sure we are on the same page... Let's say we have an LLC that two affluent investors and me, a poor PhD student started a while ago. Let's say we were successful in managing the initial pie and decided to get bigger, by creating an LLP whose general partner is the LLC the three of...

Yeah, I've seen it elsewhere. sounds weird. Have there been any precedents of such court orders?

Thanks Trdrmac. I wasn't aware of this sort of insurance. I was thinking that as long as I didn't do anything illegal, I was OK with just the protection of limited liability, but I guess it's not all that black and white.

It was only like 30 million cap or something. How much could one realistically buy of it without moving the price some 10%? With an average volume of 20,000 shares per day it must have taken you a while to accumulate a reasonable position in it :D I don't know, small caps are just not for me...

Yes, they are. Also it's typically less than 100 qualified investors although it seems like there are ways around it and the number can be larger. I guess you are saying that more affluent people are less likely to sue over losses. In a way you are right, but they also have more resources...

:eek: :eek: That doesn't sound good. I'm no lawyer, but don't the "qualified investors" pretty much agree that the high returns imply high risks and that they are willing to bear those? The lawyers did all the paperwork, but I thought there was some kind of "You make money and get your cut...

That is only partially true. Many losses (especially of small traders) are due to the advantages (informational, technological etc etc) others have, fair/legal or not. This is probably less of an issue in highly developed markets like in the US, but I wouldn't go as far as to say that the...

Just saw this somewhere: <i> "The use of a limited liability company as a general partner of the Hedge Fund or as the general partner of the general partner of the Hedge Fund gives the "appearance" of limited personal liability. We use the word "appearance" in quotation marks because many...

I lost that much today... Must be the same 5 grand we are talking about :D EDIT: sorry, didn't notice it was for November.

Yes, the specialist do that. But if it was all they did (or the main thing they did), the intervention of a multitude of small daytraders wouldn't have made much of a difference. They aren't supposed to do it and if they overdo it, they'll be in trouble. At least that's my underinformed...

The best traders will have a share of it, I agree, but don't forget the uncaught Martha Stewards of this world... That is where a big chunk of it will go.

Chas, I have to say you are one of the ET members I respect the most, but what you said up there is 99% inaccurate. If you mean that religion was squelched in the former USSR and that it was a bad thing for the country, I couldn't agree with you more. But as far as the "moral compass, rule of...

The specialists are only supposed to provide liquidity, not take directional bets to try and profit from the others. The are only after the spread, actually a small portion of it only, the bulk of the spread goes to cover the overhead and losses to those who are more informed... I don't think...

...taking away the gains of others (or making their losses bigger), thereby reducing their taxes and making them less prone to be charitable, and less able to provide a good life for their families... :D Whichever way you look at it, it's just a wealth transfer. The middlemen, and the...

...that would have been nice. Except that in trading it's usually the other way around. The privilaged few have access to the best info and the best minds are working for them. Thus the wealth transfer is usually from the poor who predominantly are invested in mutual funds and dramatically...

Yep, it turned out to be a problem with the generator (I wrote the program in VBA within MS Excel. I assumed for 10 mil numbers or so their generator should be OK. When I got the result I was amazed. I re-ran the code and got very similar results. It wasn't funny any more... Statistical...

There is a real smart guy by the name of Whitcomb who used to be an academic (still is) and then set up a firm called ADT (automated trading desk) that is extremely successful. Look up his papers, he had a real nice co-authored peace back in the 80s I think that explained why there ALWAYS will...

Just a thought for the statistically inclined of you... I was bored this weekend and did smth for fun. I simulated 50,000 random walks 200 time periods each. No drift nothing. Just pure normal/gaussian noise. Then I cumulated the returns and sorted everything according to the cumulative...

Would you have said this same thing if it kept pummeting since morning and (clearly) he didn't sell when it opened lower??? Everybody here would have been yelling - why did you ride that loser??? I'm not saying he did smth wrong. I hold everything overnight and often it gaps down the way UAL...