One Current Market Observation:
Interest rates for the U.S. have been spiking precipitously. Warren Buffett argues that interest rates are the driver of all asset prices. Traditionally, a spike in rates would lead to a move down in equities, yet markets have stayed resilient. I’m never one to fight the trend, but if markets start to pay attention and price action weakens, you know I will be paying attention as well.
One Nugget of Trading Wisdom:
Trading isn’t just about having the best trade idea. It is also about expressing it efficiently and effectively. Sometimes futures or options can offer a more favorable expression of a trade than equities, or vice versa. Many traders in the equity world are trading TLT, which, in many situations, can be less tax-efficient than trading U.S. Treasury futures.
One Reflective Question:
What are some places you can increase the tax- or fee-efficiency of your trading?
One 1%-Improvement Idea:
Consult a CPA. Many traders don’t write off many of the deductions they’re legally entitled to, such as computers, news services, education subscriptions, and more.
One Reading Recommendation:
Angela Duckworth, author of the famous performance psychology book, Grit, recently came out with Situated. Given my obsession with trading pods and optimizing environments rather than relying on willpower, you can bet that I’m a fan of this book.
Forget outcome. Let’s get better this month.
