Malt Liquidity

Malt Liquidity explores the intricacies of financial markets, trading strategies, and the impact of liquidity across various sectors. It delves into personal experiences, historical and theoretical analysis of finance, market dynamics, and the philosophical aspects of investing, providing insights into risk management, market behavior, and the legal frameworks surrounding trading activities.

Financial Markets Trading Strategies Market Liquidity Investing Philosophies Risk Management Legal and Regulatory Frameworks Personal Finance Economic Theory Market Dynamics Technology and Finance

The hottest Substack posts of Malt Liquidity

And their main takeaways
12 implied HN points 29 Feb 24
  1. Price is never fixed; liquidity is essential for determining true asset value and facilitating trading.
  2. Surge pricing is a rapid increase in price due to fluctuating supply and demand, different from traditional linear pricing models.
  3. In the business of food delivery, balancing in-store and app orders requires strategic pricing adjustments to maximize profitability and control over the network.
8 implied HN points 14 Mar 24
  1. Food delivery companies like Doordash may struggle to sustain growth post-lockdowns, facing challenges with profitability and expanding their customer base.
  2. Central bank policies face challenges in balancing inflation control and market stability, leading to potential risks of speculative bubbles and volatility.
  3. Inflation can impact investment decisions, prompting individuals to seek ways to outpace the rate of return to counter its effects.
6 implied HN points 13 Mar 24
  1. Our brain is exceptional at pattern recognition, and merging with technology can enhance our abilities.
  2. Visual processing is faster than auditory processing, like in chess where seeing the board is more efficient than listening to a game.
  3. Technology, like AI, can help turbocharge our skills by providing new perspectives and automating processes, leading to more creative problem-solving.
17 implied HN points 09 Jan 24
  1. Trading becoming majority-passive may disincentivize real trading based on information asymmetry
  2. Introduction of a BTC spot ETF may not benefit those seeking exposure to Bitcoin for actual trading
  3. Transition of crypto into traditional system through ETFs may contradict the original ethos of crypto being outside regulatory control
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6 implied HN points 27 Feb 24
  1. Showing profit is important for selling a company, while revenue projections affect investor interest.
  2. Exiting Reddit IPO may not yield good returns unless the business is proven profitable.
  3. Banking and financial systems have complexities that are not widely understood, and liquidity in web3 must be carefully designed with practical use cases.
6 implied HN points 21 Feb 24
  1. The author is apologizing for a lack of posts due to a busy work schedule, but mentions having several in progress.
  2. The author is considering different ways to engage readers and potentially move discussions to a more permanent format.
  3. There are plans to transition content to a native URL and potentially create a separate site for non-core content.
6 implied HN points 01 Feb 24
  1. Law is essential for society to function, especially in settling property disputes.
  2. Lower standards of proof in civil cases are important for quick settlements and maintaining liquidity.
  3. Private regulations like the rules of golf can provide a template for effective governance with enthusiast participation and strict enforcement.
10 implied HN points 11 Dec 23
  1. Speculation has been a part of human history, evolving into formal market mechanisms over time.
  2. The 'Howey' test is used to determine if a transaction constitutes an investment contract subject to securities regulation.
  3. Regulating cryptocurrencies and tokens under the Howey framework is complex, and alternative legislation may be needed to provide clarity and protection for businesses and traders.
8 implied HN points 15 Nov 23
  1. Success sometimes means knowing when to take a break and enjoy life.
  2. Las Vegas has a seedy underbelly beneath its glamorous facade.
  3. Vegas' traditional revenue sources like casinos are facing challenges with changing trends and competition.
6 implied HN points 18 Oct 23
  1. Leveraged ETFs can erode value due to volatility and past performance may not predict future outcomes.
  2. Leveraging in bull markets can lead to gains, but may not be efficient in the long term.
  3. Market behavior can change due to interest rates and backtesting strategies may need to account for different regimes.
20 implied HN points 29 Nov 22
  1. Zero-day trading involves short-term options for amplified returns in high volatility environments.
  2. Options traders fall into categories like protectors, hedgers, speculators, and liquidity providers, each with different objectives.
  3. Recent growth in zero-day options trading volume suggests increased interest from various market participants due to market volatility and intraday price reversals.
12 implied HN points 10 May 23
  1. The financial system is composed of equity, currency, and debt, with debt providing liquidity to trust.
  2. Interest rates compensate for the risk on loaned capital, and every lending act inherently contains some risk.
  3. Deposit banking and investment banking serve different clients, with depositors being stakeholders in their bank's success.
19 implied HN points 30 Nov 22
  1. To trade effectively, focus on methodology and intuition rather than complex technical skills.
  2. Understand the market structure, products, risk management, and your own risk tolerance before starting to trade.
  3. Consider the liquidity profiles of different order books, market participants, and proper execution to generate profitable trading opportunities.
5 implied HN points 12 Oct 23
  1. During the trial of Sam Bankman-Fried and Alameda Research, evidence pointed towards potential fraud and mismanagement of funds, shifting the focus from trading competence to potential fraudulent activities.
  2. The testimony of key witnesses, Gary Wang and Caroline Ellison, revealed damning details about the misuse of customer funds, false financial statements, and manipulation within the organization.
  3. The trial shed light on the complex dynamics involving a hypercompetent coder, a junior trader, and a manipulative leader, emphasizing the need for accountability and transparency in the financial sector.
15 implied HN points 23 Nov 22
  1. The financial system is built on three pillars: equity, currency, and debt, with debt being the most crucial as it provides liquidity to trust.
  2. The liquidity of debt relies on ease of transfer and recourse in case of default, showcasing the importance of sound legal systems in finance.
  3. Events like bond market crises can highlight the fragility of trust and liquidity in the financial system, showing the impact of human actions on financial stability.
8 implied HN points 16 May 23
  1. Playboy magazine had an intellectual aspect with notable authors contributing.
  2. The magazine content was more than just nudity, challenging stereotypes of male-focused publications.
  3. There's a need to acknowledge and cater to the intellectual and libidinal aspects of male identity in media and culture.
8 implied HN points 06 Feb 23
  1. It's difficult to assign a definitive reason to every stock move.
  2. Causality must be proven in a court of law for securities lawsuits.
  3. Sometimes stock movements may not make sense, like when Amazon's stock rose post-acquisition announcement.
10 implied HN points 04 Dec 22
  1. Liquidity refers to the ease of buying or selling an asset, and can be applied broadly across various fields.
  2. In decision-making, it's important to consider liquidity's impact on theoretical values and realistic transactions.
  3. Decisions can be categorized into flooding (broad approach) and pinpointing (focused approach) based on how liquidity issues are addressed.
3 implied HN points 30 Aug 23
  1. Good ideas in finance can quickly become mainstream and lose their original value.
  2. ETFs have changed the investment landscape by offering exposure to a wide range of assets with ease.
  3. The SEC's regulation decisions on financial products like Bitcoin ETFs can seem arbitrary and impact market dynamics.
8 implied HN points 02 Dec 22
  1. Investing is driven by valuation based on future cash flow and market impact.
  2. Understanding catalysts like earnings can guide event-based trading decisions.
  3. Market behaviour can be influenced by factors like uncertainty in future cash flows and bid strength.
6 implied HN points 19 Nov 22
  1. The Weekend Edition includes a collection of popular posts for new and existing subscribers.
  2. Posts cover a wide range of topics in finance, from liquidity theory to market practices.
  3. Malt Liquidity is reader-supported and offers free and paid subscriptions for access to new content.
5 implied HN points 18 Nov 22
  1. The market reflects a company's future prospects based on its debt levels.
  2. Crypto trading volume is expected to be low due to recent industry turmoil.
  3. In a liquidity crisis, a company might have the assets to pay but not the short-term cash flow.
1 implied HN point 30 Oct 23
  1. Every good trader should want to bet more, despite the risks involved.
  2. Rogue traders in finance can operate as a 'fourth-wall break' showing the gambling aspect behind the industry.
  3. In a highly automated trading environment, even small unauthorized changes to models can have significant financial impacts.
1 implied HN point 23 Sep 23
  1. The lifespan of college football coaches is short, mirroring the trend of rapid success and replacement.
  2. College football revenue has more than tripled since 2003, with a focus on plowing money into massive football programs.
  3. The college football system underwent changes with the BCS, playoffs, and player transfers, leading to a focus on revenue over traditional aspects of the sport.
8 implied HN points 30 Dec 21
  1. Equities market may be losing momentum with reduced trading excitement
  2. Market dynamics show a push-and-pull effect in stock valuation influenced by institutions and individuals
  3. Chinese speculation regulations could impact the future of cryptocurrencies like BTC and ETH
1 implied HN point 12 Sep 23
  1. Defining a fair market is complex and involves intricate operations and risk mitigation strategies.
  2. The SEC's role encompasses protecting investors, maintaining market fairness, and facilitating capital formation.
  3. Increased SEC regulations may unintentionally benefit large players, making it crucial to close loopholes accessible only to wealthy investors.