The hottest Trading Substack posts right now

And their main takeaways
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Notes on Trading using Tom Dante's teachings.

Philoinvestor • 58 implied HN points • 26 May 23
💰 Finance Trading Strategies Psychology Mistakes Discipline
  1. You are the edge in trading, not the systems.
  2. Tom Dante created the Demon Finder tool to identify and clear trading mistakes.
  3. Common errors in trading include boredom, FOMO, fear, moving stops prematurely, biased thinking, and lack of discipline.
  4. Remember in trading: no free trades, don't rely solely on momentum, profitability in a niche is useless without patience.

Day 2: A Comedy of Errors

Malt Liquidity • 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.

Degenesis: How to source memes to trade, perform DD, and size your bets

Boltzmann Soul • 2 HN points • 28 Jun 24
💰 Finance Cryptocurrency Trading Investing Risk management Decentralized Finance
  1. Understand how to source memes for trading by looking at opportunity identification and filtering through platforms like Dexscreener.
  2. Perform due diligence on meme coins by checking for burned liquidity, mint and freeze authorities, holder distribution, and top trader PnL health.
  3. Size your bets based on the Kelly criterion formula, considering probabilities of success and potential bet gains. Tactical execution includes recycling costs, dollar-cost averaging, and follow-on investments.
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Wall Street Whiners

Diane Francis • 159 implied HN points • 04 Feb 21
💰 Finance Stock Market Investing Regulation Trading Cryptocurrency
  1. A lot of people online worked together to drive up GameStop's stock price, which scared traditional Wall Street investors. This event showed how social media can change the way stocks are traded.
  2. There's been a lot of talk about this being some kind of illegal scheme, but really it was just people using trading apps to invest without proper oversight. Wall Street's concerns seem a bit hypocritical given how they often exploit loopholes themselves.
  3. Regulators need to adapt to these new trading methods and keep an eye on social media's role in the market. It's important to ensure that investing remains fair and doesn't become just a game.

The edge in trading IPOs: 18% annual return

Quant Trading Rules • 2 HN points • 08 Jun 24
💰 Finance Trading Investing IPOs Strategy
  1. Marsten Parker's IPO trading strategy focuses on frequently buying and selling IPOs shortly after they go public, with clear rules for entry and exit.
  2. Buying IPOs at all-time highs showed a significant edge over buying non-IPO stocks at all-time highs, with IPOs performing better after 20 days.
  3. Tweaking profit targets and stop-loss orders in IPO trading strategies can significantly impact annual returns, demonstrating the importance of optimizing these parameters for better performance.

This is Flow

Malt Liquidity • 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

What is Capitulation ?

Shivansh • 1 HN point • 13 Jun 24
💰 Finance Investing Technical Analysis Stock Market Trading Risk management
  1. Capitulation happens when investors lose hope in the market and sell their investments at low prices, often during tough times like a financial crisis.
  2. Technical analysis, like using candlestick charts, helps identify capitulation patterns that signal potential major changes in price trends.
  3. Capitulation can present opportunities for profit, depending on whether an investor is in a long or short position - it's neither inherently good nor bad, but a strategic move.

Lawyers, Coins and Money

Malt Liquidity • 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.

How I buy crypto at the best price

Steve Kirsch's newsletter • 4 implied HN points • 03 Mar 24
🔮 Crypto Investing Trading Blockchain Bitcoin
  1. The author shares a technique to buy and sell crypto on Coinbase with ease, which could be advantageous in the current market.
  2. With new money entering through Bitcoin ETFs, the price of Bitcoin is predicted to increase significantly.
  3. Paid subscribers will receive exclusive access to the author's method of buying crypto, potentially giving them an edge in trading.

Checking in on Solana After the Launch of TRUMP

Coin Metrics' State of the Network • 0 implied HN points • 04 Feb 25
🔮 Crypto Market Analysis Trading
  1. The launch of the $TRUMP coin led to a big increase in trading activity on Solana, with exchange volumes reaching $20.5 billion and active wallets growing by 25%.
  2. Solana's stablecoin supply jumped from $6.1 billion to $12 billion, improving the liquidity in its ecosystem, mostly from USDC.
  3. Transaction fees rose significantly during the network's busy period, hitting $30.6 million in total, while most users still faced low fees for their transactions.

The Case for Buying WTI Crude Oil Futures & Selling Crude Oil ETFs (USO) Cash Covered Puts

The Tweetsift Report • 0 implied HN points • 02 Mar 23
💰 Finance Investing Stocks Commodities Markets Trading
  1. The price of WTI Crude oil & USO tends to fluctuate throughout the year, being higher at year-end and more volatile in the first quarter.
  2. Global economic state, geopolitical events, and technological advancements impact oil demand and prices.
  3. Considering patterns in oil trading, historical data, and global economic growth can guide investment decisions in oil futures.

The meme aper's guide to trading

Boltzmann Soul • 0 implied HN points • 22 May 24
💰 Finance Cryptocurrency Trading Investing Wallets
  1. To start trading meme coins, you need to go through steps like swapping fiat for cryptocurrency on a CEX, taking control of your tokens on a non-custodial wallet, and bridging ETH to the Base network if necessary.
  2. When using DEXes to swap tokens, always use the coin address rather than the token name or ticker to avoid potential scams with similar names or tickers.
  3. Meme coin trading involves high risks of losing assets, so only trade with funds you can afford to lose. Be cautious about slippage, network congestion, and transaction failures when using DEXes.

The parallels between shitcoin sniping and pre-seed VC investing (Part 1/3)

Boltzmann Soul • 0 implied HN points • 15 May 24
💰 Finance Cryptocurrency Trading Investing Blockchain DeFi
  1. Crypto bull runs occur every four years and can mint new millionaires and billionaires.
  2. Shitcoin sniping in meme coin trading has similarities to pre-seed VC investing, including the dominance of returns by power law and the impact of FOMO on deal economics.
  3. New traders in meme coin trading should pick a blockchain ecosystem, track PnL in the network's native token, and avoid getting influenced by noise like fake influencers and copy trading.

The Bitcoin Boom: Asset, Currency, Commodity or Collectible?

Musings on Markets • 0 implied HN points • 24 Oct 17
🔮 Crypto Digital Currency Blockchain Trading Investing Market Analysis
  1. Bitcoin is a currency, not an asset. This means you can't determine its value the same way you would for things like stocks or real estate.
  2. You should focus on trading Bitcoin rather than investing in it. Trading is about predicting price changes, while investing requires valuing an asset.
  3. The future of Bitcoin can go in different directions: it could become a global currency, a gold alternative for the younger generation, or even a trend that fades away like the tulip bubble.

The impossible quest for fair markets: Pokemon cards, HFT and Life lessons

Musings on Markets • 0 implied HN points • 25 Mar 14
💰 Finance Trading Investing Market Analysis Economics Behavioral Finance
  1. Markets are often unfair, just like my son's Pokemon trading experience. Some kids had advantages that made it hard for others to compete.
  2. In trading, you can either adapt your strategy or exit the game if you feel outmatched. Sometimes stepping back is the best choice.
  3. High-frequency trading has changed how the market works. Instead of trying to beat those with more technology, consider being an investor and focus on the actual value.

Impactful information is not always insider and insider Information is not always impactful!

Musings on Markets • 0 implied HN points • 24 Mar 14
💰 Finance Investing Trading Market Regulation Economic data
  1. Not all important information comes from insiders, and not all insider information is significant. Understanding the difference is key for investors.
  2. Insider trading laws have evolved over time and they focus more on the information itself rather than just on the individuals trading it. This shift can impact how people trade stocks.
  3. It's important for markets to stay fair and transparent. If some investors feel they're at a disadvantage, they might stop participating, which can hurt the market overall.

Twitter IPO: Why a good trade be a bad investment (or vice versa)?

Musings on Markets • 0 implied HN points • 10 Oct 13
💰 Finance Investing Trading Market Analysis Valuation Risk management
  1. There’s a big difference between price and value. Price is what people are willing to pay, while value is what the actual worth of the asset is supposed to be.
  2. Traders focus on price movements and market trends to make quick profits. Investors look for long-term value and often ignore short-term price changes.
  3. Both trading and investing are important in markets. Traders create opportunities for investors by moving prices, while investors help stabilize the market.

Ruminations on Rogue Trading

Musings on Markets • 0 implied HN points • 23 Sep 11
💰 Finance Trading Risk management Behavioral Finance Regulation Investment Banking
  1. Rogue trading happens when a trader breaks their company's rules, which can lead to huge financial losses or gains. It's not just about losing money; making risky trades can also be considered rogue trading.
  2. There are several reasons why people engage in rogue trading, like feeling addicted to trading or wanting to hit a big payday. Many traders take bigger risks when using money that isn't theirs, especially after experiencing losses.
  3. To prevent rogue trading, companies need to have better risk management systems and only hire cautious traders. Monitoring must be improved and there should be clear consequences for traders who take reckless risks.

Jerome Kerviel is sentenced: Ruminations on risk and trading scandals

Musings on Markets • 0 implied HN points • 07 Oct 10
💰 Finance Trading Risk management Behavioral Finance Banking Economics Risk management Trading Behavioral Finance Banking Regulation
  1. Younger and single people tend to take more risks than older or married individuals. This is especially true in trading where many traders fit this profile.
  2. Traders often take bigger risks when using money that isn't their own, like 'house money'. This can lead to careless decisions.
  3. When traders start losing money, they often try to recover it by making bigger bets, which can lead to even worse losses. It's important to monitor and control losses early on.

"We are not in Kansas anymore"

Musings on Markets • 0 implied HN points • 17 May 10
💰 Finance Markets Trading Investing Regulation Economics
  1. One trader from a small firm can have a big impact on the stock market by trading a lot of futures contracts. This shows how interconnected the trading world is.
  2. Futures contracts are used by investors to bet on market movements or to protect their portfolios from losses. They can make trading more volatile, especially in shaky market conditions.
  3. Even when markets drop quickly, it can create chances for long-term investors to buy stocks at lower prices. Those who trade frequently might find those drops nerve-wracking, while long-term investors see opportunities.

A tax on financial transactions: Good or Bad Idea?

Musings on Markets • 0 implied HN points • 27 Nov 09
💰 Finance Taxation Investing Market behavior Regulation Economic Policy Taxation Regulations Market Analysis Trading Government Policy
  1. A tax on financial transactions might raise a lot of money for the government since there’s a lot of trading happening. But it's important to realize that a small tax on many trades can add up quickly.
  2. The idea behind the tax is to discourage risky trading and punish those who are seen as speculating rather than investing. However, it's tricky to differentiate between what's speculation and what's genuine investing.
  3. If this tax isn't well thought out, it could make trading more expensive and push traders to find ways around it, like moving to places without the tax. This could hurt the markets we rely on.

Corporate Hedging: Answers to questions

Musings on Markets • 0 implied HN points • 30 Nov 08
💰 Finance Risk management Investments Market Analysis Corporate strategy Trading
  1. Hedging makes sense when companies protect against risks that directly affect their core business, like Southwest Airlines hedging against oil prices.
  2. Hedging after a price increase can be dangerous. Airlines that didn't hedge before prices spiked often suffer losses trying to time the market.
  3. Companies should make hedging decisions based on their unique situations and avoid risky speculative bets that can confuse investors.

New Features: Trading Journal & Bid/Ask Spread

Theory A : Visualize Value Investing • 0 implied HN points • 14 Jan 25
💰 Finance Investing Trading Options Data Analysis
  1. A new trading journal feature helps you see all your open positions in one place. This makes it easier to keep track of different option contracts and their expiration dates.
  2. There's improved bid-ask data with a new system that's more accurate. You can now see where the current price is in relation to your contracts with a color-coded line.
  3. The free access to options data has been extended from 30 days to 180 days. This gives you more time to analyze market trends without needing a paid subscription.

[P] VYX: Checking Out in 2025? (Part 2)

Nongaap Investing • 0 implied HN points • 20 Jan 25
💰 Finance Investing Markets Economics Trading Analysis
  1. Understanding incentives is key for making good investment decisions. It helps to know what drives people and companies to act a certain way.
  2. Activism can influence businesses significantly. Sometimes, outside pressures can lead to changes in a company's strategy or focus.
  3. Planning for the future is important in investments. Looking ahead to 2025 means considering all possible outcomes and options available.

Part 1: Deep dive writeup on Albemarle ($ALB)

Jonah’s Growth Stocks • 0 implied HN points • 12 Feb 23
💰 Finance Investment Stocks Trading Earnings Valuation
  1. Albemarle (ALB) is a company expected to show strong revenue and earnings growth due to the increasing demand for lithium from the EV industry.
  2. ALB is considered undervalued, trading at a low multiple of earnings despite the positive growth projections.
  3. Analysts are cautious about ALB's future performance, but if EV adoption remains strong, the stock could outperform.