Search results

A market can not function without differing opinions. Facts are tougher to come by in a quantum universe. Like a mad painter, some get the (model, language etc.) paint on their hands and become their paint. I just asked a question for thread readers to answer so I could learn. There are many...

LOL. (Hadn't heard that one.) "I think that change comes about at the margins. I’ve always believed that. People in the center are not going to be the big change makers. You’ve got to put yourself at the margins and be willing to risk in order to make change." —Frances Kissling ...

Another way of framing this topic is: Can insurance risk ever be properly priced a priori in a competitive market? Or said another way, is there such a thing as fairly priced insurance in any market? If that statement is true then it means that both sides are almost certainly wrong. One side...

+1. Figuring out when and why this changed is an important step in option trading abilities IMO. (LOL - THIS IS NOT A TEST!)

This could partially be due to regulations since in my province, they definitely question you about your option understanding (as per the 4 levels) and early trades are reviewed. Even complex trades are reviewed. I have noticed that it has tightened up somewhat since 2008. Again brokers don't...

+1 .... and now, why would that be true? Is the market chaotic or random?

What if the reserve currency is the bubble and the bonds simply a denomination of that currency. (In 2008 there was no housing bubble either.)

I don't remember testing sle or jgills or yourself. I only test when I am curious and the right opportunity comes along. The thread discussion requires a clear theoretical bifurcation (chaos theory). Sle knows his sh*t IMO. I have read and thought about what he said enough to hold an opinion...

I often ask these precise questions to determine how sophisticated an options trader I am talking to. I have others that I have asked on this very forum with surprising results. (If they give a better answer than I can, then I know I am in trouble!) Who bears the risk? If the stock goes...

Re Nomex - if your methodology works, it helps you disregard some of the idiot posters in these forums. There are many good hearted smart ones as well. Remember to honor those who taught you what you know ( in my case, most are dead now) and pay back what you owe. That is progress in some sense...

I see, the models are arbitrary but the only 100% true model of the world, is that world itself. Yes.

Very well said. (but I am unclear .... does that freight train have a bulldozer on it or not????) There is a huge difference between a big loss and a losing system (as I am sure you know). Who here says insurance is not viable, yet most say selling puts is not a viable strategy? However...

Which is why there are so many wonderful edges in options trading. In general, the more understood and the better the models, the less "play" for market inefficiency (AKA trading). What do you mean by "arbitrary nature"?

Not sure about about the trade secret part, but volatility is really really interesting. There are things that I have never read on ET about options. Does volatility prediction set the option price or value? And interpreting what MG said, under what conditions does it set either of those two...

Or said another way, option selling/buying risk can be looked at as gamma vs theta. (Perhaps most trading methods can be looked at that way.) However the BS formulas contain some questionable assumptions - early exercise, the ability to hedge, normal distribution etc. but it is better than...

Any tips on how to tell fake money from fiat money?

+1 for example: http://www.bloomberg.com/news/2014-05-05/jpmorgan-shares-drop-after-forecast-for-20-trading-slump.html I would bet that most don't know the cause.

If the brokerage confirms that they received a cancel all positions, then you won't recover anything. My brokerage platform recorded all key strokes and most traders didn't know that. Lots of people use it. Good trading plans account for all possibilities - like my plan if my WI-FI drops (as...

How can it be down on a Tuesday? It has to be rigged! (kidding)

Yes I have had many odd things happen in thousands of trades. In general, when you make a mistake, your money is gone, when the brokerage or exchange does, your money is gone. (Trades are canceled.) All brokerages have activity records for you to look at. Did all trades have essentially the...