These two stories may make one wonder who runs trading – A good thing or ? My Hedging Story When I traded, I was especially concerned about my authority limits, and whether the board we reported to understood our business. I started attending the board meetings with the division president to do nothing more than…
Hedging Tactics A well-developed hedging program requires tactics. Many organizations that do hedge, while at the same time complaining that management doesn’t see the value they are adding, could rather spend that time focusing on the fact the world is full of color, not just plain vanilla. The world is changing rapidly, and many companies…
What is Hedging? Many trading and risk experts would read this headline and think: Why would one start with such a basic question? On your notes page, write your hedging definition of hedging, even just one word to one sentence. Or, a paragraph, and let’s compare it with others, internally to start, to find…
Extraordinary Popular Delusions and the Madness of Crowds When I was kid, my grandfather, the small-town Ohio doctor I mentioned in the Introduction, and I were sitting at his humble kitchen table one morning when I was thirteen. He had in his hands this hardback book with a rustic, old-looking cover. He said to…
I have seen all types of supposed strategies developed. Whether published in a book or evolved on a trading floor, most are just a list of one trading instrument after another, defining the instrument and claiming that is a strategy. Trading instruments using financial or physical, swaps to options, is not a strategy. It is…
