Archive for the ‘How Not To Invest’ Category

Options Trading Part II - The 'Currency' of Options

Options Trading Part II – The ‘Currency’ of Options

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

Please see related introductory Post: Options Trading Part I – NFW Edition How Wall Street thinks about options trading Non-professionals who engage in options typically do not understand the ‘currency’ in which they’re trading. By ‘currency’, I don’t mean option-users remain unaware of their US dollars. I mean that professional options traders use a mathematical valuation [&hellip

Options Trading Part I - NFW Edition

Options Trading Part I – NFW Edition

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

This is a highly speculative trade, not an investment, so run away, retail investor! A friend in the finance-writing space sent me a query not long ago about the idea of “selling puts” as an appropriate and lucrative investment activity. Following my swift reply of “NFW[1],” she asked for an explanation. After all, a friend [&hellip

Like Visiting An Old Friend - Bad Debt Buying

Like Visiting An Old Friend – Bad Debt Buying

By The Banker | Blog Posts, How Not To Invest, Investing

In my pre-Bankers Anonymous days, one of my primary investing activities was purchasing charged-off consumer debt. If you have no idea what that means, I recommend reading this New York Times Magazine article from last weekend. Few people have written about this niche of the financial world. While Jake Halpern’s account is a bit sensationalistic [&hellip

Driving In Traffic - A Metaphor For Fund Fees And Performance

Driving In Traffic – A Metaphor For Fund Fees And Performance

By The Banker | Blog Posts, How Not To Invest, Investing

Editor’s Note: A version of this post appeared in the San Antonio Express News in my brand spanking new “So…Money” column.   My morning commute this summer means driving the two young lovelies to their respective kid camps. I like driving in heavy traffic as much as I enjoy hauling over-heated kitchen garbage out to the [&hellip

On Longevity Insurance - Do You Feel Lucky?

On Longevity Insurance – Do You Feel Lucky?

By The Banker | Blog Posts, How Not To Invest, Insurance

For starters, I hate most insurance products that purport to replace investment products. But I had not heard of longevity insurance until this week, so I decided to check it out. Here’s the concept: Pay a big lump sum to an insurance company now (before retirement), in order to draw on a hefty fixed income [&hellip