Don’t care too much

I have gone through a lot of things both personally and professionally the past years and the number one lesson learned is to not care too much. If every little or big mishap in your life makes you irritated and annoyed then you will never be able to enjoy life.

Honestly after the past years nothing really bothers me. I have realized that it is not worth wasting time on mishaps or people treating you bad, things happen for a reason, learn from them and move on. Like someone wrote the return on investment of not giving a damn is personal happiness, mental freedom and success.

Focus on your goal and not the obstacles you will meet on the way towards it.

All categories,Miscellaneous

What is “Short Selling”?

After binge-watching season 1 and 2 of Billions my interest in the stockmarket got a big boost. In the TV drama they use a lot of stockmarket lingo which in the beginning was quite difficult to keep up with. To teach myself more about stocks and maybe even help some of you understand Billions I have decided to write some blog posts on the topic from time to time.

In Billions they several times say “go short”. Short selling means the sale of a security that actually is not owned by the one selling it, it is the sale of a security the seller has borrowed.

The motif behind short selling is that belief that the security’s price will go down, making it possible to buy it back at a lower price to make a profit.

Short selling is prompted by speculation or by the desire to hedge the downside risk of a long position in the same security or a related one.

This technique should only be used by experienced traders who are familiar with its risk as the risk of loss is theoretically infinite.

Further clarification of the technique. Trader A believes that the stock SS which is trading at $50 will see a decline in price.Trader A therefore borrows 100 shares and sells them, he is now “short” 100 shares of SS since he has sold something that he did not own in the first place.

A few days later, SS reports bad financials results for the quarter and the stocks falls to $45. Trader A decides to close his short position and buys 100 shares of SS at $45 on the open market to replace the borrowed shares. Trader A’s profit on the short sale (excluding commisions etc) is therefore $500. (100×50 = 5000 100×45 = 4500 5000-4500=500)

Another example is that trader A did not do as described above but decided to leave it open to earn more on a further price decline. But lets assume a rival company swoops in to acquire SS because of its lower valuation and announces a takeover offer for SS at $65 per share. If trader A now decides to close the short position at $65, the loss on the short sale would amount to $15 per share or $1,500, since the shares were bought back at a much higher price.

All categories,Miscellaneous

Stressed Out by Twenty One Pilots

I never heard “Stressed Out” by Twenty One Pilots before today when I first discovered the song thanks to Puddles Pity Party.

You don’t need a long time listening to the lyrics of the song to understand the universal emotions conveyed by it. The song compares the carefree childhood with the stressful adulthood.

Dreaming as a child of travelling to outer space are compared to adult worries about appearance and the need to make money.

We used to play pretend, give each other different names
We would build a rocket ship and then we’d fly it far away
Used to dream of outer space but now they’re laughing at our face
Saying, “Wake up, you need to make money.”

The points are emphasized by the singalong chorus, “Wish we could turn back time to the good old days / When our momma sang us to sleep but now we’re stressed out.”

The music is sort of spooky and while listening to it while interpreting the song most adults will recognize the feelings the lyrics tell.

I personally prefer Puddle’s version of the song, below are links to both versions:

Twenty One Pilots’ original version and Puddle’s version.

All categories,Miscellaneous