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Hedge Fund Manager Gives Advice to Those Thinking About Trading Stocks on RobinHood

“There are three levels when it comes to this: Investing, Speculating, and Gambling.”

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Robin Hood, GameStop, and hedge funds are all in the news lately, aren’t they? People have made millions and hedge funds have lost billions and the question for many people is, can I still get in the game?

PolitiCrossing reached out to Joel Block of BullsEye Capital, a California-based hedge fund manager and Venture Capitalist and asked him what he thinks about all of this and whether or not the “little guy” should get involved.

He says that when you are dealing with stocks, there are three levels when it comes to this: Investing, speculating, and gambling. He makes a pretty compelling argument that this specific instance is gambling and how the little guy is going to be left holding the bag. Check it out and comment below about what you think of the video:

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Joel Block is a futurist and longtime venture capitalist/hedge fund manager (gobbledygook for professional investor) who lives in a Shark Tank world like on TV. Since selling his publishing company to a Fortune 500, Joel’s keynotes expose Wall Street insights and the inside track on high-velocity innovation for better, faster, and smarter profits – empowering business executives and their teams to “Disrupt Their Competitors’ Future.” He can be found at BullseyeCap.com.

More about Hedge funds from Wikipedia:

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated.

Hedge funds are regarded as alternative investments. Their ability to make more extensive use of leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, such as mutual funds and ETFs. They are also considered distinct from private-equity funds and other similar closed-end funds, as hedge funds generally invest in relatively liquid assets and are generally open-ended, meaning that they allow investors to invest and withdraw capital periodically based on the fund’s net asset value, whereas private-equity funds generally invest in illiquid assets and only return capital after a number of years. However, other than a fund’s regulatory status there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a “hedge fund.”

Although hedge funds are not subject to many restrictions that apply to regulated funds, regulations were passed in the United States and Europe following the financial crisis of 2007–2008 with the intention of increasing government oversight of hedge funds and eliminating certain regulatory gaps.

Although most modern hedge funds are able to employ a wide variety of financial instruments and risk management techniques, they can be very different from each other with respect to their strategies, risks, volatility and expected return profile. It is common for hedge fund investment strategies to aim to achieve a positive return on investment regardless of whether markets are rising or falling (“absolute return”). Although hedge funds can be considered risky investments, the expected returns of some hedge fund strategies are less volatile than those of retail funds with high exposure to stock markets, because of the use of hedging techniques.

A hedge fund typically pays its investment manager a management fee (for example, 2% (annualized) of the net asset value of the fund), and a performance fee (for example, 20% of the increase in the fund’s net asset value during a year).

Hedge funds have existed for many decades, and have become increasingly popular. They have now grown to be a substantial fraction of the asset management industry, with assets totaling around $3.2 trillion as of 2018. Some hedge fund managers had several billion dollars of assets under management.

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Chris is one of the World's Top 50 Speakers, member of the Motivational Speakers Hall of Fame, and one of Inc. Magazine's Top 100 Leadership Speakers. He considers it a privilege to be able to speak to people, help them lead successful lives, become extraordinary leaders and, masterful salespeople. Chris has authored twenty books with three million copies in print in 13 languages and over 450 articles on success, leadership, sales and motivation.



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Business

The People Who Size You up Instantly

Beware of people who conveniently assess what you need, while missing the boat about their own needs

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I went to a social gathering and, arriving early, few others had arrived. So I took out my notepad and pen, and leisurely started making notes. A lady who saw me, asked what I was writing, which, of course, could be either a friendly way to start a conversation, or intrusive, depending on your point of view. I took it as the former, and shared with her my predisposition to take notes outside of my office where I generate ideas that don’t readily emerge at my desk.

Apparently my explanation was not satisfactory for her. In rapid succession she told me, ‘You need to get a drink. (Actually, I don’t drink.) You should to stop making notes. You ought to relax. (Making notes is relaxing to me.) You need to get a life.’

Paradoxically, I am the author of the books, Breathing Space and Simpler Living, and the audiobook, Get a Life. I also own the registered trademarks for the programs, Relaxing at High Speed and Managing the Pace With Grace. I have delivered 1,060 lectures on these topics for three decades.

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Quick and Wrong

It’s beyond strange when someone at a social gathering, in such short order, will assess what I need to do, with one pronouncement after another. When told that I needed to relax, I said, “If I was any more relaxed, I’d fall asleep.”

I came away from that experience recognizing that people who will readily tell you what you need are the ones who need what they’re telling you. You might have noticed a somewhat similar phenomenon in the workplace.

Suppose you work in a company that is crowded, noisy, and busy almost all the time. However, in your own office or cubicle, whichever the case might be, you’re able to maintain order.

Perhaps you have installed some sound barriers, if that is appropriate, and have crafted a workspace where you can get things done. People who walk by notice that your office equipment, resources, and possessions are organized. Guess what? Some office mates won’t tell you this, but they are uncomfortable with your organizing skills.

If they could find a simple way to articulate it, they would tell you, “Loosen up.” You don’t need to be so neat and orderly.” Why are they itching to tell you this? Because your level of organization makes them feel inadequate.

Be Like Me, I’ll Feel Better

Much like the lady at the social gathering, who told me ‘what I needed,’ some people in your immediate environment, in observing your capacity for taking charge of your space, and perhaps noting your higher-than-average level of productivity, would rather that you acted and proceeded in a different way. You might not hear that from them, but that is some might be thinking.

Beware of those people who so conveniently assess what you need, while completely missing the boat about their own needs. They fail to realize that what they’re telling you, is probably what they need to address for themselves.

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Business

Micro-tasking for Effective Performance

Professionals who can micro-task are in demand while those who multitask often do a disservice

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Much as been discussed about multitasking and fortunately, much of what has been written exposes the myth that multitasking represents. Instead of making us more productive and having a greater output, we tend to slow down on the very things that were trying to speed up on, and we end up making more errors.

Micro-tasking, by contrast, is the ability to compartmentalize and to focus in quick, short intervals on a variety of items that compete for attention. This is a vital skill for career professionals. While micro-tasking is effective for quick decisions, and for handling routine and short term tasks term nature, multitasking is the attempt to handle two or more important tasks at the same time. It is not to be confused with micro-tasking.

A Skill to Cultivate

Some workers have little choice in the short run but to work in a distracting, noisy environment. Some employees, in particular, were retained to be able to quickly shift their attention from one issue to another, focusing on each issue as needed.

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In an interruption-based environment, such as a hospital, police station, retail store, or airline ticket counter, the ability to micro-task is a valuable skill.

Throughout the course of a day, a manager in such settings might encounter a variety of people asking questions and voicing concerns. For sale managers micro-tasking can make all the difference in making quota or not.

Slow Down!

Tasks that require our sharp attention necessitate that we slow down, focus, keep interruptions at bay, and work as effectively as we can, toward completion. Handling two tasks simultaneously, each of which require sharp attention, is a prescription for poor results.

Professionals who can micro-task are in demand. Others, who engage in multitasking, often are doing themselves as well as their organizations, a disservice.

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