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

Regime is Collapsing

27 implied HN points • 27 Nov 24
💰 Finance Investing Economics Regulations Market Trends Wealth Management
  1. Market regimes change, and recognizing this can help avoid losses. Just like in a movie, understanding what's real can prevent you from getting stuck in a bad situation.
  2. Recent changes in government policies and market behavior mean it's time to rethink traditional investing strategies. You should consider how different sectors will perform under new rules.
  3. Inflation impacts wealth distribution, and predicting its effects is crucial. Adjusting investment strategies to navigate inflation and potential downturns is important for healthier future markets.

Good News

12 implied HN points • 05 Nov 24
🇺🇸 U.S. Politics Elections Public Policy Political Behavior Governance
  1. People want to hear good news and avoid deep, negative analysis. It helps them feel more positive about the future.
  2. Cynicism can block progress. It’s important to distinguish between viewing flaws in ideas and being bitter about them.
  3. Change can happen when people believe it's possible. Focusing on fixing things rather than just complaining makes a difference.

Day 1: The Dawn of Icarus

12 implied HN points • 01 Nov 24
💰 Finance Trading Investing Market Analysis Risk management Psychology
  1. It's important to adjust your trading bets based on how much money you have. If you don't, you risk losing out when the market goes your way.
  2. Scalping small trades can be effective, but be careful not to overtrade. There's a fine line between making smart quick trades and making too many trades without focus.
  3. Staying invested in the market, even if it's not moving much, can pay off. It’s better to be in the market than trying to guess when to get in or out.

Day 2: A Comedy of Errors

6 implied HN points • 04 Nov 24
💰 Finance Trading Investment Market Analysis Risk management Simulations
  1. Following rules can be tough, especially in trading. Straying from common advice can lead to mistakes, like taking on too much risk or not using stop losses.
  2. Taking on a large position without proper planning can result in big losses. It's essential to manage your trade size and understand the potential consequences of your decisions.
  3. Trading simulations can be a fun way to learn, but they also have strict limits. It's important to adapt your strategies to fit the rules of the system you're using.

Parasocial Activity

6 implied HN points • 03 Nov 24
🇺🇸 U.S. Politics Elections Prediction Markets Public Opinion Media influence Political Discourse
  1. Prediction markets are like betting games where people guess outcomes. The prices in these markets reflect people's opinions, not the actual chances of things happening.
  2. It's hard to trust polls and models because they often just show guesses instead of real data. They can't accurately predict the winner of an election since every event is unique.
  3. Discussions about prediction markets can become confusing and frustrating. They often don't help us understand real odds and can turn political debates into meaningless chatter.
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This is Flow

17 implied HN points • 09 Jan 24
💰 Finance Investing Cryptocurrency Markets ETFs Trading
  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

Economics 101 with Lt. Surge

12 implied HN points • 29 Feb 24
💼 Business Economics Pricing Delivery Market Supply and Demand
  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.

Venstappen Victory Lap

8 implied HN points • 14 Mar 24
💰 Finance Economics Investment Central Banking Inflation Financial Markets
  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.

Becoming One with the Machine

6 implied HN points • 13 Mar 24
🕹 Technology AI Machine Learning Self-driving cars Computer Vision Neural Networks
  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.

This is Howey Do it — Rethinking the Security

10 implied HN points • 11 Dec 23
💰 Finance Regulation Cryptocurrency Investment Market Securities
  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.

Baskerville Jiu Jitsu

6 implied HN points • 27 Feb 24
💰 Finance Investing Banking Cryptocurrency Economics Books
  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.

Quick Update

6 implied HN points • 21 Feb 24
🕹 Technology Social media Content creation Online Platforms Digital Communication
  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.

Laws in the Shivas Kingdom (Part 1)

6 implied HN points • 01 Feb 24
🚌 Education Enforcement
  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.

Perceiving Las Vegas

8 implied HN points • 15 Nov 23
🎭️ Culture Tourism Entertainment Business
  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.

What's the Deal with Zero Days?

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.

Don't Trade Before Reading This

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.

The Leveraged Sellout

12 implied HN points • 10 May 23
💰 Finance Banking Debt Interest Rates Risk management Market Regulation
  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.

Consider the Leverage

6 implied HN points • 18 Oct 23
💰 Finance Investing Market behavior
  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.

The Theory of Liquidity

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.

Lawyers, Coins and Money

5 implied HN points • 12 Oct 23
💰 Finance Cryptocurrency Trading Legal Court Proceedings Fraud
  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.

Critique of Pure Liquidity

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.

Tell Me Why (That Move Ain't Nothin but a Mistake)

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.

Malt Liquidity 72

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.

An Arbitrary Walk down Wall Street

3 implied HN points • 30 Aug 23
💰 Finance Markets ETFs Regulation Bitcoin Investing
  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.

The Malt Vault – Best of Malt Liquidity

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.

Malt Liquidity 67

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.