MarketLife Ep 4 – Things people trade and… why don’t you have a cup of tea?

Podcast-Cover300This episode of MarketLife continues Episode 3‘s discussion of the markets and asset classes people trade and invest in.

Markets for trading and investing (Part 2)

  • Currencies
    • Currencies can be quoted against USD or other currencies
    • Largest markets in the world–this is both good and bad
    • Brokers are not always transparent and it can be hard to understand commission costs
    • Interest rates (differentials), inflation, balance of trade, public debt, political stability
  • Indexes & Funds
    • Often traded as Exchange Traded Products, but can also be futures
    • Composed of other “things”
    • Do you know what is in your index?
      • Some are simple
      • Some are actively managed
    • May behave differently than the individual components
    • Usually have a cost associated with them, “baked in”.
  • Bonds
    • You are loaning money to an entity when you buy a bond
    • Consider who or what that entity is: country, town or city, or company
    • Interest rates, inflation, credit risk
  • Other “things”
    • Real estate
    • Private equity
    • Insurance
    • Exotics
  • (Note: I did not cover CFD’s because they are not accessible to US investors.)


Tea_LeavesI also suggest you check out the first flush teas from Darjeeling. These teas are only available fresh one time each year (now!), and are a beautiful balance between the richness of a black tea and the lightness of a green tea. Goldentips is a good source if you want to buy direct from the source. Though it might seem like a simple thing, a fine cup of tea (or coffee) can go a long way toward defusing (diffusing?) some of the stress we experience in our work and everyday lives.


Also, if you like the music for this podcast, then be sure to check out Brian Ashley Jones, my friend, and a fantastic singer-songwriter. He has a new CD out, Out of the City (or here, on iTunes) that you might enjoy!

Enjoy the show:


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.