I'm just going to leave this here for you to ponder. $NVDA

@nandu @nathanworden I hope you guys went long the oat commodity and shorted $OTLY like I suggested in May! That would have been a great relative value trade!

Attached is a chart of Oat Futures.

My kid made a great pick here. When I told him his pick is up sixty percent his response was "It's a fun game and makes a ton of money per day. I've seen a lot of people spending Robux on Youtube videos and not a lot of people make videos. So there must be a lot of people spending Robux" He's definitely a better investor than I was at his age! This is what Commonstock is about!

Today is the IPO of Roblox and it is an emotional event for me. I joined Commonstock more than three years ago. My son was six years old at the time and would come hang out in the office after school on some days and chat with @mcd and @eric. At some point I had to describe to a six year what I do and what the mission of Commonstock is. It boils down to making people better investors.

But how do you explain investing to a six year old? I started with explaining shares. You pay money to become part owner of a company and share in it's success. So you should pick companies that you think will be successful in the future. I asked him if he could be part owner of a company which one would he pick? He chose $RBLX. It was still a private company at the time so we couldn't invest but he was on the path to being an investor because he recognized the joy that the game brought him and his friends and wanted to share in the growth and success of the company.

You can never be too young nor too old to become an investor. Making sure investors have the right tools to separate signal from noise in the main reason I joined Commonstock.

So today I will be buying $RBLX in honor of my son's first stock pick and I will enjoy watching his evolution as an investor. I'd like to thank the Commonstock community for helping us on the path towards realizing our aspirations towards making people better investors.

When I started my career in finance, fresh out of college, I worked for a Chicago-based proprietary trading firm in their London office. The firm specialized in trading derivatives, specifically futures and options. The vast majority of our positions at the time were closed out by the end of the trading day. In this type of scenario the popular consensus is that profit and loss (P&L) is king. When people start investing, it's easy to fall into the trap of making P&L the measure of success. When this happens you stop being an investor.

Some of the best traders I know are terrible investors and some of the best investors I know aren't great traders. Let's first examine what makes a great trader.

There are many different ways to trade, but at the end of the day, for good traders, you need to master utilizing margin, capitalizing on information asymmetry, reading price action, game theory and behavioral economics. When trading, opportunities are ephemeral. Being late by minutes can be disastrous to your returns.

There are many ways to be a great investor, but again, there are some attributes that great investors share. Understanding market cycles, specific economic sectors, company valuations and finances, etc.

The underlying component between great traders and great investors that is often overlooked, however, is a fundamental understanding of risk. This is the difference between legendary traders and investors, and a flash in the pan.

After working at a proprietary trading firm, a fund of funds, a hedge fund and a start up focused on identifying and managing portfolio risk, I have realized that most investors understand return but aren't as comfortable with quantifying risk. There are several reasons why and I will go into greater detail on them in future memos.

But here's the short list:

**Risk is not your P&L.

**Risk isn't about how much you lost, it's about how much you have the potential to lose

**Risk is less defined that returns.

**Is risk a dollar amount? Is it a percentage? Is it dimensionless?

**There are many ways to calculate risk.

**Sortino vs Sharpe? VaR vs CVaR?

**Know your own risk aversion.

**A lot of investors don't have a firm grasp on how much risk they can truly handle