Weekend reading 08/19/2016

Building an exchange – the hard way

“On June 17th 2016, the SEC approved IEX’s application to become a registered national securities exchange with its launch as a full exchange scheduled for 19 August. IEX now hopes to take on the likes of Nasdaq and NYSE, though it has a long way to go to compete with these giants. Current market share totals at 1.451% and its average daily matched volume is 93,809,082 at the time of writing.”

Preparing For A Volatility Increase

“What we are really trying to get at in this article is to put together an approach for the next phase of volatility – which will eventually be a rising phase. It will favor volatility buyers and could be painful for volatility sellers unless they are careful. But the real quandary will arise when one tries to analyze these strategies as volatility lifts from the doldrums and begins to rise.”

The Difference Between Buying Stock and Trading Options

“Option investing takes study and understanding and discipline that the purchase of stock does not require. Every investor must decide for himself or herself if they are willing to make the time and study commitment necessary to be successful at option trading. Most people are too lazy.”

Weekly Calendar Trading

“If you were given the chance to flip a coin once and it lands on heads you get 1 000 000 dollars and if lands on tails you owe 700 000 would you take the coin flip?”

The Practice

“It’s common to hear that Paper Trading is useless, as emotions are not involved and therefore it will never be anything like real trading. Based on this, some people advice to not use a paper trading account and instead, jump straight to trading with real money, just with a very small amount as you learn the ropes.”