I'll just put this out there:

1. This is classic liquidity crunch and has happened many times.

2. RH/etc. will turn out to have made mistakes, didn't plan for any of this, ultimately lose big.

3. Reform will center on how services are offered/advertised to retail investors.

4. Lots of coverage will center on class warfare narrative and the 'game being rigged'.

5. That same coverage will make 3 seem like the answer and a fair resolution to the problem.

6. The real culprit, as always, was leverage and incentives.
7. In the US financial institutions that accept deposits insured by the federal government (FDIC etc) are allowed to hold positions in risky assets, though this is regulated.

8. Other even less regulated institutions (funds etc) hold shares in the guys referred to in 7.
9. The REAL problem is those institutions are allowed to make leveraged bets that, if they go badly enough, could affect the value of 'safe' assets like savings accounts and pension funds.

10. Thus the ultimate incentive problem: Big funds ultimately insured by taxpayer dollars
11. Ultimately the ONLY real reforms that matter are:

i) Reserve requirements, i.e. how much banks/funds/etc are allowed to borrow to invest in risky assets

ii) Trade restrictions, i.e. some institutions (commercial banks) not allowed to hold some assets/positions (short)
12. Both are tricky, because (surprise!) a great way to make money is to invent new types of tradeable assets or new classes of institutions/funds to circumvent these rules. And ultimately the funds have a LOT more resources to work with than the regulators.
13. One of the proposed solutions is always to rule out certain assets or positions. This time it's shorting. Other times it's options or spreads.

14. That's probably really dumb because while those positions could contribute to a crunch they can also help CREATE liquidity.
15. The root cause of liquidity crunches is almost never a particular type of asset structure. It is ALWAYS leverage. As my old colleague Doug Diamond said in 2008, "follow the short term debt". Crunches happen because somebody borrowed and couldn't pay up. It's that simple.
16. If there IS a class warfare narrative here, it's simply that when big institutional investors get crunched, we often end up having to hold our noses and bail them out. But that's not any hidden rich people conspiracy, it's the simple incentive problem we talked about above.
TL;DR if you care about financial reform, don't listen to any of the fiery rhetoric. There's no one bad guy. Michael Lewis et al get a lot right but ultimately they had to sell books/movies and blaming rich people and big banks is a great way to do that.
The system IS rigged but not how you think. It's rigged because big financial institutions effectively get free insurance. The only way to UNrig is smart, well funded, aggressive financial regulation.

Like a lot of other things, we know HOW to fix the system- We CHOOSE not to.

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I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.


I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.

In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.

So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.

Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
Trading view scanner process -

1 - open trading view in your browser and select stock scanner in left corner down side .

2 - touch the percentage% gain change ( and u can see higest gainer of today)


3. Then, start with 6% gainer to 20% gainer and look charts of everyone in daily Timeframe . (For fno selection u can choose 1% to 4% )

4. Then manually select the stocks which are going to give all time high BO or 52 high BO or already given.

5. U can also select those stocks which are going to give range breakout or already given range BO

6 . If in 15 min chart📊 any stock sustaing near BO zone or after BO then select it on your watchlist

7 . Now next day if any stock show momentum u can take trade in it with RM

This looks very easy & simple but,

U will amazed to see it's result if you follow proper risk management.

I did 4x my capital by trading in only momentum stocks.

I will keep sharing such learning thread 🧵 for you 🙏💞🙏

Keep learning / keep sharing 🙏
@AdityaTodmal