By email@example.com (Singapore Man of Leisure)
I was glued to my notebook yesterday morning 8 am till 1 am into the wee hours early this morning.
Not since Brexit and Trump’s election night have I seen such volatility!
Talk about wild swings to stop-out both longs and shorts…
The volatility has continued to this morning. First green, then giving back all those gains…
For long only retail “investors” without utilising margin, its probably a non-event. You just ignore the “paper gains” for Jan 2018 like it never happened.
However, for one group of “investors” who shorted volatility using inverse ETNs, they have been wiped out…
For those into selling options to earn “passive” income, its a reminder this is what happens when you win 99% of the time, but you’ll be wiped out when that 1% tail risk hits you when you least expect it!
No free lunch.
There was a time in 1999 when I thought to myself, “This is easy!”
And you know how markets humbled me subsequently.
That’s why old fogeys who have survived more than 1 bull/bear cycle behave differently from youths who have only known a bull market.
你平衡吗？ ( 27 Feb,2017 )
CNAV Stocks – Analysis of Gold Companies ( 11 Aug,2015 )
Knowledge is Power – Or is it Really? ( 8 Feb,2015 )