21 Financial Resolutions for 2021 (and 20 Things We are Leaving in 2020):

21 resolutions for 2021

Spend less than you make, period

Work with an advisor to get a formal financial plan

Own the world: diversify within and between asset classes

Splurge, but only infrequently to maximize happiness

Read at least one book per month

Invest in your mind and skillset

Spend money in ways that increase happiness: charitable giving and time with loved ones

Automate every part of your financial life
Teach someone else about the power of saving and investing

Learn to savor and appreciate what you already have

Save at least 1% more than you did last year

Check out your credit report

Declutter: get rid of everything you don’t use or love
Make a (realistic) budget

Track your net worth

Make one extra mortgage payment

Create a “vision board” with your three top financial goals
Make bite-sized financial goals with rewards for completion

Choose experiences over stuff

Rebalance at least yearly

Have fun and buy things that matter to you - you can’t take any of your money with you!
20 things we are leaving in 2020:

Benchmarking to the S+P 500.

Keeping up with the Joneses

Chasing speculative fads and pretending it’s an investment

Conflating negativity and bearishness with sophistication
Unnecessarily complicated products

Confusing a place to live with an investment

End of year price targets and specific forecasts

Raising lifestyle when income rises

Reaching for yield

Watching histrionic financial news coverage
Depreciating assets

Confusing our desires for an asset with its future trajectory

Talking about 10% corrections as though they are rare

The idea of getting rich quick

The illusion of certainty when it comes to markets (or life, for that matter)
Unnecessary consumer debt

Co-signing loans

Short-term thinking

Sacrificing health and happiness for a paycheck

Assuming that the future will look like the recent past

FIN - Hope you all have a healthy and prosperous new year!

More from Finance

Ivor Cummins has been wrong (or lying) almost entirely throughout this pandemic and got paid handsomly for it.

He has been wrong (or lying) so often that it will be nearly impossible for me to track every grift, lie, deceit, manipulation he has pulled. I will use...


... other sources who have been trying to shine on light on this grifter (as I have tried to do, time and again:


Example #1: "Still not seeing Sweden signal versus Denmark really"... There it was (Images attached).
19 to 80 is an over 300% difference.

Tweet: https://t.co/36FnYnsRT9


Example #2 - "Yes, I'm comparing the Noridcs / No, you cannot compare the Nordics."

I wonder why...

Tweets: https://t.co/XLfoX4rpck / https://t.co/vjE1ctLU5x


Example #3 - "I'm only looking at what makes the data fit in my favour" a.k.a moving the goalposts.

Tweets: https://t.co/vcDpTu3qyj / https://t.co/CA3N6hC2Lq
Ok here is the explanation. Grab a cup of coffee and read on. If you have not read/noticed this, you will see intraday options movement in a new light.


Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points

To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs

Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM

Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk

You May Also Like