Saturday, September 4th, 2010

Sometimes the business analyst can be so caught up in a project he or she forgets tried and true methods do not always work. The analysis team is trying to get done what the customer has scoped out and sets up a plan of action. The plan of action requires certain fundamentals. There are times when these rudimentary ideas just do not work for the client. The client can not understand why these steps may be so important. This is when the business analyst needs to step back and ask the same questions as the client. It is all in communication.

Many run into the problem of differentiating between a systems analyst and a business analyst. The differences in some organizations do not exist. In other companies, the comparison is almost an insult. Depending on the business or corporation, there are many differences. The job title is not the only thing with which to compare these two separate roles. The problem occurs when the title is not so conclusive. The business systems analyst or the systems business analyst can actually be one or the other or both. Job description is the only way to tell when this happens. There are differences, though.

If you want to make money with a number of that nest egg that you have got stashed aside for a rainy day, it’s a great idea. Keep in mind that nothing comes simply and you have to learn your ABC’s. Like all other trading, you’ve to understand what you’re getting into, when to trade and when not to trade.

The cost of a call and the cost of a put are almost directly related. If you have a $40 stock, a $40 call and a $40 put will be almost exactly the same price most of the time. If there is a difference, the possibility of an arbitrage usually exists meaning that there is a 0 risk strategy (minus commissions) to get something for nothing. This is true whether it’s a collar or another strategy. I don’t completely understand the full process that allows for that to happen, but a complex series of trades usually makes it possible. So if the price of a call and put are going to be the same that means generally the higher priced calls are due to greater risk. Some reasons may be historical volatility, as that plays a roll, but the implied volatility, that is, how much people expect or are betting on the stock to move, becomes important.

Many good trading systems use multiple exit strategies. In normal trading system, you need to know when to exit from a gain, and when to exit from a loss. Generally you want to be cutting your profits short, and letting your profits run. At a minimum, you generally want nearly a 3:1 gain to loss. This means you should take profits at 3 times the percentage amount as you cut your losses short. We will use this system and do the following