I must be among a small handful of clueless contemporaries who had been blissfully unaware of the existence of the Youtube blogger PewDiePie, a Swedish millenial who apparently amassed over 50 Million subscribers and raked in over $7 Million a year in ad revenues. My first thought was that I must be doing something horribly wrong or that I may be in the wrong business. So just as I was getting all oiled up to deliver my first shirtless videocast I became aware of what all the hubbub had been about and thus quickly changed my mind.
Okay, so let’s get this out of the way once and for all. I can totally understand if you don’t care that much about American Football and may just have better things to do than spend your weekends watching 22 guys in helmets and spandex have at each other. But if the annual Super Bowl doesn’t make your heart jump at least a little then you may as well just buy yourself a ticket to 1980 Soviet Russia and stay there. Alternatively just move your ass to Berkeley.
The governor of the Central Bank of Iran apparently announced that his country will stop using the US dollar in its financial and foreign exchange reports for the new fiscal year beginning in March. He also hinted strongly that he may opt for the Euro when releasing its key economic reports in the future. Excellent choice sir! Detach yourself from the world’s firmly established reserve currency and instead shift to the one which has been causing nothing but economic turmoil across the region since its very inception. Would you like a side order with economic sanctions with that?
I’m going to cover two important topics today which both relate to realized volatility (RV) and in particular how to trade your way around it. If you’ve been a trader for a while then you probably have noticed that volatility profiles differ substantially on the short term when compared with the long term. In essence volatility has a tendency to decrease toward the long term. Nevertheless many traders treat those charts the same when designing their systems, e.g. how and where they enter, where they place their stop loss, and how they handle campaign management.