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Even when passing your stated rules, drawdown offered might just be $1K. And that's open-trade drawdown. You can't hold overnight on that kind of allowance unless all you trade is a single MES in which case you can do it anywhere for $1,320 margin + drawdown. Trade one ES and people are out on...

Generally speaking, the alternative to big government and central planning is the free market a.k.a. capitalism. When Jim Rogers was asked what he would do as Fed chairman, he replied: "I would abolish the Federal Reserve and I would resign." A bold answer that has its charm. Let the market set...

To be fair, you suggested a government deficit was needed for the private sector to save without a decline in incomes. It's logical for me to make a counter-example, because one is enough to show otherwise. And there was no aggregate effects problem in my example. There was one in your reply...

Rather than an error, there's two different things going on here: 1. In the example you mentioned, Murphy showed that real savings can be increased without a decrease in total money expenditure. We seemingly agree on that part. The redirection of expenses created an apartment, i.e. real wealth...

That's the beauty of the example: 1. Spending $200 on caviar/lobster equals the spending of $5 on rice/beans plus $195 on durable goods, silver coins etc. The sales revenue of $200/day is exactly offset by $5 + $195 a day. We can assume profits are the same, and for simplicity the same company...

I don't think that's correct. Suppose your monthly income is $6000 and you eat caviar and lobster each day for $200. You spent all money you earned. Now you're redirecting your expenditures: You eat rice and beans for $5 and spend the other $195 on canned food, durable goods, guns, ammo, and...

The Fed's lending isn't backed by actual savings as it's the case with private lending. "Lending" newly printed digits amounts to redistribution and causes distortion, which was my point. Just ask yourself whose productivity is it and who pays the taxes. The private sector can lend on its own if...

Central banks can't provide that because they don't have real wealth. Without that, there's nothing to lend; only to siphon from others and redistribute. 1. Commercial banks put their money on the line that's backed by real assets. Bona-fide savings occur if private entities put more goods and...

The Fed doesn't add anything because it has nothing. It produces no valuable goods or services and has no savings. All it can do is print dollars, which dilutes the purchasing power of the dollars already in existence. This amounts to redistribution, not creation of anything. Those who spend...

A proper valuation on a generous forecast. The further away unicorn forecasts hinge on the idea that Tesla conquers the world and no other company can come up with a self-driving or electric car.

Massive bubble in just a handful of stocks: Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla account for half of the Nasdaq 100 index value. P/E ratios for these range from 35.80 (Facebook) to 1166.02 (Tesla) as of August 28, 2020. All of the recent gains are due to multiple expansions. The...

A risk-to-reward ratio in isolation is irrelevant. If it weren't, the best bet would be playing the lottery. What makes more sense is profit factor = (average win * win percentage) / (average loss * loss percentage). An equivalent formula for profit factor is gross profit / gross loss. Imagine...

Stories like that are often partly true and partly exaggerated. Reading what has been linked about Uighur Muslims, I'm primarily sceptical about the scope of the detention. That's not saying that all allegations to their full extent can't be accurate. Yet the scale is among what's easiest to...

Truth is the first casualty of war. This holds for today and even more so for the past. Many people know about the false claims of weapons of mass destruction never to be found, yet used as moral justification for the 2nd Iraq war. Not as many know justification for the 1st Iraq war was just...

"Besides locking up because of negative prices, a second issue concerned the amount of money Interactive Brokers required its customers to have on hand in order to trade. Known as margin, it’s a vital risk measure to ensure traders don’t lose more than they can afford. For the 212 oil contracts...

The more I look into what happened, the more I think someone set this up. 1. WBSK20 is cash settled based on the CLK20 settlement price of negative $37. 2. That price of CLK20 happened to be very, very near the session low of negative $40 a barrel. 3. After reaching that negative price, CLK20...

FCM regulation is generally strong and few FCMs ever went under, including: Refco LLC in 2005 Sentinel Management Group in 2007 Lehman Brothers in 2008 MF Global in 2011 Peregrine Financial Group in 2012 There are reasons for these failures that are all public, and setting insufficient client...

Have a look at C:\Jts\9xx\tws.vmoptions Mine looks like this in the middle section: # maximum Java heap size -server -Xmx2400m -Xms2400m -XX:MaxNewSize=1200m -XX:NewSize=1200m -XX:MaxMetaspaceSize=1200m -XX:MetaspaceSize=1200m -XX:MaxMetaspaceFreeRatio=100 -XX:MinMetaspaceFreeRatio=0...

Let's work with what we know. The day I posted (3/16/2020) already was a record day. There has never been an overnight gap larger than that in TradeStation's data: 9.78 percent in the Dow Jones. This does include all exchange shutdowns as well. To find #2 on that list, we have to go back to...

Brokers had ample time to liquidate positions from 17:00 to 17:15, and again from 8:45 onwards. Today the entire gap risk (and therefore liquidation risk) was less than 150 points = $7500. Any broker observing the CME minimums and with auto-liquidation did just fine, just like they would have...