ON TRADING by Boris Schlossberg

7 Most Interesting Trading Stories This Week
Every single week I scour through hundreds of articles to bring you the most interesting trading related stories written by experts in their industries. I hope you enjoy them as much as I do
In 1955, the Fortune 500 was 35% of GDP. Today, it’s 72%!And 100 companies make up  almost half  of our entire economy. Think about that. HALF. The President could take all their CEO’s calls in two afternoons!
And they’re using their advantages – cash, protective regulations, scale, brand – to dominate as many of our fancy new technologies as they can.
This  concentration  is happening in every major industry. In fact, the very idea of competition is fleeting. It turns out, competition is a temporary state of Capitalism. The steady state is monopoly. Here’s what’s happening and why we’ve turned the other cheek.


Algorithms win, at least partly, because they don’t do this: The same inputs generate the same outputs every single time. They don’t get distracted, they don’t get bored, they don’t get mad, they don’t get annoyed. Basically, they don’t have off days. And they don’t fall prey to the  litany of biases  that humans do, like the  representativeness heuristic .

The median American household currently holds just $11,700 in savings, according to a new analysis of Federal Reserve and Federal Deposit Insurance Corp. data by  personal-finance site Magnify Money . Median balances (the midpoint value) are lower than the average savings rates. The top 1% of households in the U.S. by income have a median savings of $1.1 million across a variety of saving accounts.

I have heard there are 15 live account FX traders for every 1 live account Futures trader worldwide. I was told this from 2 different large trading marketing firms. Does that ratio seem right? They did not have any data yet on crypto traders.

The researchers planned and carried out six interesting experiments. For the first they recruited 93 undergraduate women at a gym who had a goal of losing weight. All participants received the same instructions to try to reduce their calorie intake over a 5-day period, but half were told to be “mindful” about their food consumption, whereas the other half were taught a three-step pre-eating ritual to remind them to reduce calorie intake. Before every meal they had to cut their food into pieces before consuming it. Next, they rearranged the pieces so that they were perfectly symmetric on their plates, and finally they had to press their eating utensils against the top of their food three times. 
It appears that rituals really can boost self-control. Participants who enacted a pre-eating ritual reported significantly lower calorie consumption than those who attempted to be mindful about what they ate. 

Jim Grant calls Steven Bregman, “one of Wall Street’s most interesting thinkers.” I called upon him to share his thoughts on the massive and growing trend to passive investing which he calls, “the greatest bubble ever.” He discusses the differences between the current bubble in the financial markets and prior bubbles, the specific distortions created in the markets and the unique opportunities they present. Perhaps most importantly, Steven reveals the little-discussed structural shift in passive investing which dramatically devalues it as a strategy and how investors have been deceived by historical return figures that are not applicable to the products they own today. 




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