Subject matter expert in physical and financial commodities, asset valuation, and capital structure.

The Difference Between Trading and Investing

Trading is supposed to make money. So is investing. That's why we do it. They share the same end goal, but they are different by nature of the risks involved.By trading, you take a position to get price exposure, within an expected holding period, with defined expectation of return.By investing, your goal is to preserve capital, and to be compensated for the risk that some of it may be lost.These sometimes cross over, and are far too often used interchangeably.If nothing else, the Dive Bar Pub Crawl should show the difference clearly.A mutt might go up in value alot, but it doesn't make it…

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Guide to Retail Investing – Part II

I’ve recently thought about the Aesop fable: ‘The Boy who Cried Wolf.Cool story. And most of us learn the typical take-away: “if you're known to lie, no one will believe you when you’re telling the truth.”It also gave us the idiom ‘to cry wolf’.A different take on it might be that the moral of the story is: “You should never tell the same lie twice.”That’s a quality in a good huckster.Lay it out for the audience you’re currently in front of, and pivot to a different pitch when you’re in front of another.Depending on whose wallets you’re trying to lighten on that particular day,…

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Guide to Retail Investing – Part I

Many years ago, when I was a young u/mollytime I was working at a company that had a pretty good sized trade book. We traded gas and crude, and your lowly correspondent was in the back office learning settlements and basic volumetric balancing. First job out of university. Life was good. My boss asked me one morning if I wanted to go to an annual meeting. We were across the street from a hotel that happened to be hosting an AGM (annual general meeting) for a local utility. I said what any junior in Sector 7G would say. “Sure”. We went early, got decent…

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