Tom & Dylan continue their transition from theoretical strategy to real-time market conditions and discuss how certain “binary events” have an effect on the market.
In this episode, the two enter into a spirited discussion of financial rules & regulations, or lack thereof, shedding light on countless industry inconsistencies. Dylan asks about the steadfast evolution from floor trading to retail trading, and Tom gives his take on similarities, differences, and new opportunities that have risen from it.
Fed Minutes - Are They Tradable?
Dylan questions why and how an event like the fed minutes can be tradable. After inferring about direction and assumption, he learns that Tom is only concerned with volatility and liquidity. When the market is busy, Tom looks to trade it.
What is "Busy"?
Is Direction Dead?
Dylan wonders if direction is dead, and Tom clarifies that direction can still be part of the game in the form of engagement and trade setup, but for him, his bread and butter is selling volatility.
So What’s The Key...Look For New Underlyings?
Dylan wonders about keeping things fresh by trading different underlyings, but Tom swears by keeping it simple. There is no reason to look for new underlyings when the liquidity is in the big names. Following the masses is not a bad thing when it comes to liquidity.
What’s The Deal With Social Media?
Tom digs into what grinds his gears about social media, specifically influencers in the financial industry divulging and alluding to news about their companies via Twitter. Currently, there is no definitive rule for what can be revealed on Twitter. Tom advocates for a fair playing field for both sides. He says we should regulate all, or regulate nothing.
Binary events will always be a part of trading, however, it is yet to be seen if things like Twitter or other social media outlets will be implemented into a regulation revamp. Until then, industry heavyweights, like Carl Icahn and Elon Musk, will continue to artificially inflate share prices through Twitter.
To see earlier episodes of Truth or Skepticism with Dylan Ratigan, you can check them out here!