That human nature example is why we should also spend a little time on trading controls. To manage emotion, I do touch on these as they are important and thankfully, for my human nature sake, when I traded we had implemented a strong mark-to-market program that was completely void of my input, or others including…
Cash Flow Maximizing Tactics One instrument I like to suggest that fits well is managing risk with options to maximize cash flow payout profiles. Using collars, or selling puts and buying calls to manage your feedstock cost, is often a nice way to keep the tail-risk or, in maximizing cash flow, et al, metrics with…
Hedging Horror Stories There are untold stories I can share about hedging gone awry, or hedging perceived to have gone rogue. In these cases, they have gone rogue, and there are others where entire industries are suffering due to the lack of hedging. $10 million losses – in one day! There are numerous examples…
Project Planning: More Art than Science There are many consultants and vendors alike who tout their project delivery as “agile” or always “timely”. Many mention, too, that they have nearly 100% success and 100% track records in delivering projects. One of my favorite claims is that 100% of our clients are referenceable. My daughter and…
The Behavioral Science and All of Those “A” Words We are going to start defining your requirements. Since we are now convinced through demos – even if you haven’t even seen one yet – and with expectations that everything is in scope, we just have to ensure we communicate it in this phase so that…
