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This is the entire basis of modern portfolio theory, which it looks like you're independently discovering on your own. Every stock's variance is made up of idiosyncratic variance inherent in that stock alone and systemic variance related to the market as a whole. That systemic variance has a...

I own a company with a software component (not in trading per se) and am almost always looking for short-term or part-time developers, in my case PHP developers. These are generally implementation projects for new programs, in our case we see 3-5 new programs a year that we need to modify our...

Put call parity means that "excess demand for downside insurance" will never impact the price of a put vs a call for options where strike equals current stock price. Might want to read up a bit on that.

It is funny that you can't buy a Tesla just because you think its a great design, or you like the performance, or you think it makes you cool, or any of the other myriad of reasons that everyone uses to chose between the myriad of other car choices. It always has to come down to some derivation...

He was Vice President of the United States for 8 years and an all around nice guy. You could definitely do worse.

Thank you for your astute medical advice. You specifically said that "There used to be a real return. Now there is very little." I'm pointing out that there is always very little difference between interest rates and inflation. If you look to the left side of the vertical axis you will see the...

I actually took a class from Andy Grove, and you zdreg are no Andy Grove!

Actually the difference between inflation and treasury yields is remarkably constant over the last 50 years, the chart below is just one example but you'll see the same no matter what tenor you look at. There's a lot of "back in my day" grumpy old man selective memory going on when it comes to...

In fact among professional money managers whose records are audited (as opposed to those who post here) there are only a handful, like less than a dozen, who beat the S&P 500 over a 20 year plus time period. From 1976 to 2012, Buffet returned 19% over the risk free rate. These are people who do...

They were trying to disguise political commentary as a question, typical among those holding the tin hat views around here. It's a lost cause with these types, they have the naive idea that a nation's finance should be run like a household's and have no grasp of the difference between macro and...

I do not think that word "socialism" means what you think it means. The FTT is most probably a bad idea. Imposing one to pay for fighting terrorism, while also probably a bad idea, is not socialism in any way.

A bit of a non sequitur to a FTT. There is already a federal tax of $.184/gallon on gasoline, and state taxes average an additional $.26, so raising the rate is a much different thing than imposing an entirely new tax on financial transactions with the corresponding unknown unintended...

Testing a large number of strategies You make a good point, if you're a HFT shop and can run a fraction of a second ahead of the news on that then you've got a legit edge that is replicable and stands up to statistical analysis. "Exploiting" the candlestick afterward is not something that holds...

Well the barrel of oil is like being short a barrel of euros in some ways, many don't realize the impact of oil being priced in dollars has on the world economy and the impact of the dollar's value on the price of oil.

Not to get hung up on the term, but brownian motion is actually easier to predict than a stock price, and yet still completely unable to be predicted. Brownian motion describes the motion of a small, but not subatomic, particle suspended in liquid. That constrains it to newtonian motion, meaning...

I fear you are one of those being fooled by randomness. The market is not like an insurance company, in so many ways that matter but I'll mention just one. An insurance company is a one way street, you want insurance and someone else has gone through all the legal, regulatory, and operational...

At its basic level, you already know the answer to your question. If you understand expected return you know that you can get any level of expected return you want, you just have to take on the required added risk to obtain that return. Getting 20% per year expected return when the risk free...

Just to add to Maverick's comments, this marketing piece is about equal weighting vice cap based weighting. It in fact specifically states that the effect is most probably based on cap effect, not random selection. Not to mention its not peer reviewed nor does it give any info needed to check...

What do you mean "the ceiling to be changed"?

My experience with Yen contracts is that the conversion happens on entry, but you end up with the native currency when you're done and have to manually convert it back using their "retail" currency conversion feature. In this case you'd end up with a pile of Euro's after you exited. Its always...