For those of you on mobile and not being automatically re-directed to the site: https://churningandburning.com ..read more

There was this trader named Tony at my old firm, back in 2011. He was an accomplished veteran trader and considered one of the core members at the firm. He was also extremely competitive and had no filter--he would say what was on his mind and not hold back, particularly if he was already on edge from the stress of trading. He cursed like a sailor and broke keyboards with the dramatic flair of Gallagher smashing watermelons. I could relate to that. I loved Tony. Tony also held a lot of grievances. He didn't like certain people. In this industry, I think there are some grievances that are val ..read more

In 2020, I traded every single day of the year.  Not a single day off. That's the first time I ever have done that, for any calendar year.  That's not like me. There's always a part of me that gets a bit flighty and needs to get away from the screen for a prolonged period. Usually when there's any kind of drawdown or adversity. I was fortunate to have a stellar year for my own standards and I avoided prolonged drawdown all year. I had a handful of deeper red days but each time I managed to claw back to the high watermark within a few days. This is vital, because what a stoic fund man ..read more

I started watching sports around 1996. Magic Johnson came out of retirement. Michael Jordan won his first title since his own un-retirement. Brett Favre won the Super Bowl. The Yankees won their first World Series in eighteen years. Oh those damn Yankees. The Yankees formed a dynasty and won 3 more titles... and I hated them more than any other team*. I fully bought into the Evil Empire narrative. My impression was they just bought all their players because they had the most money. My earliest memory of an elite second baseman was Chuck Knoblauch of the Twins. He could do everything--hit, slug ..read more

I have been doing some reflection on why I don't write more. I think about what this blog could have become if I committed to writing daily or weekly to it and I honestly think it would have been one of the most greatest trading blogs (maybe ever?!). Instead, as it exists--it's the one good story (the FNMA loss story), a bunch of interesting niche subjects, and a few blurbs that paint me as a massive emotional monkey (which I won't deny). The FNMA story was a huge hit for me. It's still by far my most widely read blog post. It got published in a magazine. Since then... blogging has been spotty ..read more

I am currently reading the Jim Simons book, "The Man Who Solved the Markets". It's very good, I suggest you check it out. There's this throwaway line in there that stuck with me. "On Wall Street, traders often are most miserable after terrific years, not terrible ones, as resentments emerge—yes, I made a ton, but someone wholly undeserving got more!" Let me give you some context. I had a not-so-great 2019. I was marginally profitable but miserable. I kept thinking about quitting and telling everyone I know about it kinda like how people want to everyone to know they're quitting Facebook. I ..read more

Looks like I am in another unusual situation that is costing me money. I seem to have a knack for finding myself in these spots. And yet again I am the lucky one who gets to be the torchbearer for the cause. Let's get started. What is the situation with CETC? Let's first start off with defining the company. Hongli Clean Energy Technology Corp (CETC) is a Chinese reverse-merger company—these are usually pretty sketchy companies at best and outright scams at worst (see the documentary The China Hustle). They used to be known as SinoCoking Coal and Coke Chemical Industires (SCOK). I remember way ..read more

I have a confession to make. I am a fraud. People talk to me.  Professional traders. Aspiring traders. Hobbyist traders. People just kinda sorta interested in trading. Crypto-fiends asking me about bitcoin. Regular people asking me about where the stock market is going. Analysts pitching me ideas, hoping to get a fee for winning trade ideas. Progammers pitching me their services for automated strategies, with me getting a split of the profits. Some of these people— They look up to me. They respect me. They ask me for advice. And I think about that fact and I am in disbelief ..read more

You ever been in a sorta-hostile situation where someone was throwing shade in a public setting but not quite crossing the line, so you couldn't quite escalate it? Maybe you just had to play along with it and  parry away with words to stand your ground. But you couldn't make it too serious otherwise you look like the asshole or you risk getting your ass kicked. Well, I was playing poker on a cruise last week. $1/2 No-Limit $200 max at one of those electronic tables. Rake was ridiculously high (15% capped at $25) but the game was soft as a pillow factory to compensate. Four Chicago guys ..read more

Greetings everyone. I hope you're all having a fabulous holiday week. As I'm sure you are aware of, the S&P 500 is currently down 600 handles from the all time highs and this will very likely be the first year we close red since 2008. Gulp. That's a pretty bad candle. This is the daily chart: I hope this is not ruining the holiday cheer for anyone, but if it is, here's the good news:  There's a big opportunity here. I know what play I want to make on the market. I want to buy into an extreme move and then sell it higher.  I specialize in short-term trading. Whatever mo ..read more