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The mental and financial costs outweigh the benefits.

In December 2020, I sold my house and moved into a rental apartment. Never been happier. I used to wake up in the morning and think: what does the house need me for today? It’s not only the financial cost of upkeep but the mental cost — get someone to mow the lawn, shovel the snow, where can I find a plumber, how much longer will the roof last? The list goes on and on. The only property I now own is the condo where my daughter lives.

But I digress.

I decided a long time ago that I wasn’t…


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Can “Madoff’s strategy” be tweaked to work?

Bernie Madoff, Ponzi specialist, had been a respected member of the securities industry. He had been chairman of NASDAQ, he was active in the National Association of Securities Dealers, a self-regulatory securities-industry organization, and he served as chairman of its board of directors.

His securities firm began using innovative computer information technology to spread its quotes throughout the industry. This technology allowed Madoff to bypass specialist firms and directly execute orders over the counter from retail brokers. As a result, he became a very wealthy man.

In spite of his position and his…


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Is it of any value to a stock market investor?

Many have tried to find a way to identify value stocks. The ideal company to buy stock in needs to be high quality, and it needs to be cheap. That’s all there is to it. Sounds simple, but many have tried with varying degrees of success.

An attempt was made in 2000, by Dr. Joseph D. Piotroski, an associate professor of accounting at the University of Chicago Graduate School of Business. He rose to fame by publishing a paper on value investing. His basic theory was to invest in companies with high book value to market value ratios. These companies…


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A recent article from Fortune.com seems to think so.

The meat of this article was taken from Fortune.com, July 11, 2021. The author was Geoff Colvin. A lot of his article quotes work done by Rob Arnott, chairman of Research Affiliates. I think there are some important observations to be shared.

Colvin asks, “Is it possible that ordinary individual investors, without the help of ultrafast computers or a PhD in math, can reliably beat the stock market?”

Arnott answers, “yes” using theories that rely on analyzing stocks that are admitted and deleted from the S&P 500 index.

Quick review of an index versus an average. An index starts with…


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A strategy to think about.

The ideas and tactics outlined in this article have not been back-tested or paper-traded. Use them at your own risk.

I’m a maverick and a devil’s advocate. I not only like to think outside the box, I like to think there is no box. I like to challenge and poke holes in conventional wisdom. My latest windmill to tilt at is the selling puts strategy.

First, they say, “Only sell puts in a stock you wouldn’t mind owning at a lower price.” Once you are assigned the stock, they advocate getting rid of it by selling covered calls. That doesn’t…


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A simple kind of candlestick chart.

Ever try to analyze a candlestick chart? There are a gazillion patterns to look for. Morning star, three white soldiers, hanging man, shooting star, evening star, three black crows and the list goes on and on. There’s an easier candlestick-way to look for trends and trend reversals — Heikin-Ashi candlesticks.

Heikin-Ashi charts were developed by Munehisa Homma in the 1700s in an attempt to predict prices in the Japanese rice market. As the rice market developed, a futures market was established so that producers would be guaranteed a price for their crop. …


Is ROI (return on investment) the best guide to profitability?

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Selling puts for profit seems to be picking up steam. Look at YouTube. Lots of videos on how to sell puts for profit.

There are many things to consider before deciding which put to sell. For example: a proper strike price, expiration date, and odds of being successful (delta), to name a few. Return on investment (ROI) is a commonly used yardstick to measure profitability.

Using ROI

ROI is important, but it’s not my primary consideration when deciding whether or not to place a sell put trade.

Look at it this way. I’m considering selling a $40 put (40 cents a share…


Is day trading the road to riches or the highway to disaster?

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The old joke on Wall Street is: How do you make a small fortune in the stock market? Answer: Start with a large one.

Day trading was touted as the new way to financial riches back in the 1990’s and achieved a high level of popularity. From 1995 to March 2000 the Nasdaq composite rose 400%, fueled by a huge speculative bubble, before falling almost 80% by October 2002. If you’re bullish, it’s hard to lose money in an up market. As the market took a nose dive, interest in day trading sank.

It seems to be getting a new…


Day trader, investor or options trader these levels are crucial to success.

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Warning: I am not a professional when it comes to the stock market. I am not licensed to give advice. This article is for informational purposes only. I appreciate any comments or insights you might have concerning this topic. Okay that’s out of the way, let’s get down to business.

I am looking into selling puts and using the wheel to provide additional income from the stock market. I am using about 2% of my investment dollars for this. The majority of my money (80%) is in index funds, and the balance is in an aggressive growth fund. I am…


Women’s contributions to our well-being are often overlooked.

Picture from 1904 patent application

A departure

This article is outside my usual topic area — finance. I write in other areas to keep my mind sharp and my writing skills honed.

The Landlord’s Game

I suspect you never heard of the Landlord’s Game and neither had I. It was invented by Elizabeth (Lizzie) Magie in 1904. Its purpose was to bash capitalism and expose the evils of letting it run without appropriate restraints.

This game was copied by Charles Darrow who sold it Parker Brothers 30 years later under the name Monopoly. It became a huge success and Parker Brothers magnanimously paid Elizabeth $500 (and no royalties) for inventing…

Joseph Liebreich

Been writing articles here and there for 15 years. I like to write about a variety of topics.

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