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James Altucher


Things people would probably like to know more about financially

    1. The Black Swan Trade

    At some point, there will be a market crash that defies all statistics. Perhaps China will Invade Taiwan, Russia will have nukes, domestic terrorism, whatever. The market will go down 30% in a day or two.

    There are two ways to fight this:

    A) this is usually the best time to buy stocks. But it's scary to buy stocks when you are 40% down that day.

    B) doing a "black swan trade". Findinfg the right, mis-priced, way out of the money puts that you can buy super cheap and have them go up 5000%+ when the market crashes. The problem with this strategy is you lose a little money each month (like insurance) until the market crashes. And then you can actually make money that day.

    And it's a way to hold onto your stocks that you believe in without having to time the market.

    2. Angel investing

    The best returns are when you invest in a company before it's public. The "smart money" doesn't let the public touch the company until every last profit is wrung out of it. Then the VCs take a company public.

    It's possible to get into good private deals without going public. This is, honestly, how i've made money over the past 15 years. It's not easy but it's possible. How to do it would be a good educational course.

    3. Crypto

    There are good cryptos, great cryptos, bad cryptos and scam cryptos.

    There's been a lot of hype that makes it confusing. NFTs, Metaverse, etc.

    Knowing how to discern between the scams, the blue chips, the picks and shovels, and the useless would be a good thing for people to learn now that we are in inning one of what could be a massive boom.

    4. Arbitrage

    Try to paper trade this just to experiment: When EWS (Canada) ETF goes up and SPY goes down, try this: Buy SPY (the S&P 500 in the US) and short EWS. If EWS goes up again with SPY going down, short more ESC and buy more SPY. Canada and the US usually trade together.

    This is a very simple version of a very simple type of arbitrage. Sometimes, to make it work, you need more country pairs but often Canada and US is enough. See how that works,

    Since these countries move together, it's reasonable when one goes up and the other goes down for two days in a row then you can bet that they snap back together. Try it and see.

    5. Closed-end funds

    These are funds that own muncipal bonds but they trade like stocks. Exciting. Muni-funds offer decent yeilds and rarely default. The closed-end funds trade like stocks so sometime go down so that the fund is worth less than the assets they own. LIke buying a $100 bill for $80 dollars.

    Buying closed end funds when they have high dividends and are trading at a discount to their assets is often ga great strategy. Since, again, it's rare for a muni bond to default.

    6. Election betting

    I wrote about this a prior list.

    7. MegaTrend investing

    Genomics, Drones, AI, Robots, etc are all industries growing exponentially. Knowing the history of what stocks in exponentially growing industries tend to go up is a useful piece of knowledge.

    8. Selling puts

    Not easy to explain but I will try to do it quickly here.

    Let's say IBM is at $100. You want to buy it at $80.

    You sell a put on IBM with a "strike price" of 80.

    Whoever buys the put has the right to sell you a share of IBM at 80. If IBM goes to 60, you still have to buy it at 80.

    But if the put stays above 80 it "expires" worthless. And you keep the amount you sold the put for.

    The benefits:

    A) income every month

    B) if you like IBM at $80, then you don't mind owning it there, even if it temporrarily goes down to $70.

    This is a great income strategy and value investing strategy;

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