Trading Tip #4 – Being Able to Admit When You’re Wrong
I remember the last conversation with my ex-wife just before we started the divorce. I sat her down, looked into her eyes and I said, “I’ve spoken to all the mathematicians, and it is theoretically impossible for me to be wrong every time.”
Trading Tip #8 – Recovering After Getting Your Butt Kicked.
The day after getting your butt kicked can be one of the most important trading days of your career. I am not talking about the normal, or slightly above normal, butt kicking. I am talking about one of those days that you just got hammered for whatever reason. Maybe you were stubborn, thinking “the market has to come back.” Maybe you added to a bad position and it just kept going against you. Maybe you said, “I Hope” and she wasn’t around to hear you scream her name. Or maybe, like me, you got caught on the wrong side of a world news event driven market, and the market gapped against you. Read more on “Trading Tip #8 – Recovering After Getting Your Butt Kicked.” »
(New York, NY – October 3, 2014) David Greenberg joins the Board of Directors of the 9/11 Tribute Center and September 11th Families Association. After Mr. Greenberg lost a number of friends and colleagues on 9/11, he was back to work on 9/13 at the New York Mercantile Exchange. As a member of the NYMEX Board, he was able to help the exchange get back into operation in one week. It was the only building in the WTC area to be open during the first few months. NYMEX brought over 1,000 people in by ferry to operate and keep the market open. Mr. Greenberg volunteers at the 9/11 Tribute Center to remember his lost friends. In his spare time, he gives motivational talks to young people at major universities on leadership and personal money management.
In a statement today, Mr. Greenberg said, “My service on the board is to honor my friends, members and staff from the New York Mercantile Exchange and the New York Board of Trade who were lost and for all who helped in the recovery and rebuilding effort.”
Mr. Greenberg, founder of Greenberg Capital and former President of Sterling Commodities LLC, has over 25 years of experience in private investments, finance and global markets. He offers leadership, financial, and corporate and personal money management services to companies, academic institutions, private clients and professional sports organizations. Throughout his career, Mr. Greenberg has appeared on numerous media outlets including CNN, Fox Business News, Bloomberg and CNBC. He is frequently interviewed on world market events.
Mr. Greenberg has been a guest lecturer for the finance program at West Point Military Academy, Columbia Business School, the Jack Welch Experience at Sacred Heart University, the Whitman School of Management at Syracuse University and Hofstra University. In addition, he has taught a course on the transition to electronic trading at the Museum of American Finance. Mr. Greenberg is currently lecturing on personal money management, focusing on topics such as “Living Below Your Personal Financial Radar” and “The Art of Saving to Ensure a Sound Financial Future for You and Your Family.”
About the 9/11Tribute Center
The 9/11 Tribute Center is a visitor center opened in 2006 by the September 11th Families Association, a not-for-profit corporation. 9/11 Tribute Center offers visitors to the World Trade Center a place where they can connect with people from the 9/11 community: family members of lost loved ones, survivors, first responders and people who live and work in Lower Manhattan. Through walking tours, exhibits and programs, the 9/11 Tribute Center offers “Person to Person History,” linking visitors who want to understand and appreciate the historic events with those who experienced them. Visitors learn factual information about the events, the identity of 2,973 people killed in the attacks, the unprecedented rescue and recovery operations and the tremendous spirit of support and generosity that arose after the attacks. Personal gallery and walking tour experiences are available for student and group visits. Learn more about 9/11 Tribute Center programs, visit www.tributewtc.org.
As the news coverage fades out please remember and please help those affected by September 11. I was in 9/11 and lost so many friends and co-workers, and as an uncle of a retired Army Ranger who is in chronic pain from injuries obtained in action, I am asking you to support a great cause.
The 3rd Annual Pike Hike to Ground Zero will take place on Saturday, September 14. The 17-mile hike will begin in Fort Lee, New Jersey and end at the Ground Zero Memorial.
This group of people was too young to feel the full impact of that tragic day as well as the pain felt from the troops coming back, but they’ve stepped out over the past few years to create a fundraising event to remember the victims of 9/11 and help wounded solders.
Please take a moment and look at this video and hit the link to the website. This is a great cause and close to the heart of all Americans. No matter how small, please take the time to donate and show your support.
Once again there are a handful of open positions at the Commodities Futures Trading Commission (CFTC). First Jill Sommers, then Gary Gensler and now Bart Chilton are leaving. This agency’s mandate is to regulate commodity futures and options markets in the United States. Unfortunately, it is being run by people who have never traded commodities, run a clearinghouse for commodities or sat on an exchange board.
There is something inherently wrong with this thought process. It would be like me sitting on the medical practices board. Although I am sure that all the people on the CFTC have IRAs and other brokerage accounts, that doesn’t make them experts, just like having health issues doesn’t put me in a position to regulate doctors.
What does this mean when people with so little trading experience run an agency? Simply a replay of the past. Clearinghouses and financial services firms such as Refco, MGF and PFG have collapsed as a result of faulty oversight by the very agency pledged to oversee them. It will happen again.
On August 23, the Wall Street Journal wrote an article titled “Regulator Moves on Trading.” While it was very well written, it didn’t give any background information on why the CFTC is so behind on addressing electronic trading issues.
The CFTC has a long history of being late to the party on a majority of major issues, while being reactionary on issues that have cost hundreds of millions to the trading community. Unfortunately, in Washington many fingers are pointed and no one ever seems to be held accountable.
In 2012, CFTC Commissioner Scott O’Malia gave a speech at New York University’s Law School. He said that he was putting together a committee to learn about high frequency trading (HFT) and that until he had time to learn about it he could not comment on the good and bad points. He also acknowledged that commission oversight had not kept pace with electronic trading.
I gave him a ride up to Penn Station. During our trip, I told him that I was happy he was looking into this but asked why the CFTC was so late to the party, considering the flash crash had happened a few years before. He didn’t have an answer. This was also during the MF Global meltdown, which was another major failure of the CFTC. The commission did not handle this in an efficient way, and cost many traders their livelihood, which is an entirely different topic that I would be happy to speak about. Read more on “Is Washington Finally Addressing Electronic Trading?” »
Since June, we have all either seen them, had them or worked alongside them. Interns, fresh from college and looking to gain experience and networking connections in the big city. But what did they really learn this summer?
My son and stepdaughter both interned this summer. My son’s internship started a few months ago, when his employer sent him books to study. He ended up reading four books on finance and woke up early to read five newspapers before commuting on the 6:50 train to New York. His paid internship was in the financial markets.
On the other hand, my stepdaughter’s public relations internship was unpaid (yes, unpaid. This was an intriguing topic between the two of them at the dinner table). She worked every day from 9 to 6 for a firm that was energetic and interesting to say the least. Read more on “Interns: What Did They Really Learn this Summer?” »
Whether you are new to investing or have been doing it for years, it’s time to realize that all types of investing markets have changed. This means it’s time to either reevaluate or understand what your risk appetite is.
Many people say they only invest what they are comfortable with losing. Unfortunately, many of my clients come to me after they have had a loss and realized that saying it, meaning it, and living it are very different things.
In trading tip one at www.greenbergcapital.com, I explained how good traders and investors leave their ego at the door. Most people feel that their risk appetite is much higher then it really is. I teach all my clients to step back and think about what would happen if every penny of this investment were lost. How would it honestly affect your life?
At first the answer is always the same: “It won’t be a problem, I can handle it,” they say. Then I’ll ask my married clients how their spouses will handle it. Will this investment, either good or bad, put a strain in the relationship? Will it affect the way you live? Will it change your child’s future? And MOST of all, how will this investment affect your every day thinking? Read more on “Realizing Your Investment Risk Level” »
For years, we have all seen advertisements on TV and in the newspapers telling us to buy gold. We’ve been told that it is a safe investment. For the past 12 years, for the most part, it has been, depending on how deep your pockets are. However, we saw on Friday, April 12th, that gold, at any given moment, can turn and drop fast and hard – just like all markets.
From the 70’s up to until about 2000, futures in gold were traded in London on the LME and COMEX. These markets were physically settled and deliverable contracts, a true supply and demand contract. When Gold started trading electronically it made it exceptionally easy for anyone or any fund in the world to buy, hold or sell gold. Then came the GLD, the gold EFT-
The GLD change the gold market forever. It made it so that the average investor could own gold in their portfolio without going directly into the futures market. The supply and demand on the psychical side was changed, and we started seeing gold rise more steadily and faster than it had in the past 30 years. Read more on “This is Not Your Grandfathers Gold Market!” »
The Martin B Greenberg Trading Room at Hosfra University
How to Start a Trading Career While in College.
We have all head stories of the guy or girl who said how they made their first fortune while trading in college. I happened to know one of these traders and, like all super stars in any field, they are part of the very small group.
If you want to start your trading career while still in college, this is how I would tell my own children to do it. First, remember your main job in college is to be a college student. The cost of college is not getting any cheaper and you must stay focused on your schoolwork. Trading in college should be a hobby. With that being said, there are many colleges that have mock trading competitions. Taking part in this is a good way to get a general understand of the markets, the trading terms, and how to place orders correctly. This early experience can help you avoid mistakes in the future.
The most import thing to understand, as a novice trader, is that mistakes can cost you a lot of money, and very quickly.
The next step would be to open an online trading account. STAY AWAY from commodities for now. It takes time to really understand the risk that comes along with commodities. I know that it sounds sexy to say you bought gold, but in the long run making money is more important than how things sound when you talk to your friends. In commodities, the speed in which money can be made or lost is must faster, and most new traders do not have the reaction time fast enough to compete. Read more on “How to Start a Trading Career While in College” »