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Better not even think about it until you find trading like playing games and are to read what it is going to happen. There is no easy shortcut, I am afraid

Only if you know the current trend :) true that the level of risk is down to the individual

Unless you are another Jeff Bozes....it does not count , perhaps? :)

Agreed with above comment. Better comparison would be a comparison among traders from different financial markets e.g. stock indices, currencies and commodities

Quite often, I have seen many traders suffer (including me), when physiological factor plays in trading decision and that's when I am not following my system. But true if you have a system, your should follow your system :)

Never ever never ever chase [price]!! Agreed :)

The big question is whether their quants actually work (? which I am skeptical as history tells that it won't work e.g. LTCM, pair trading) or have they found out a proxy to capture a good market timing to initiate their trades/or consider making investment.

He's an humble man so he won't tell you his recipe in the public :) Whatever he talks about in the public is his philosophy which is less relevant to his trading

If there is a holy grail, I don't know whether people really want to share it in the public. One thing for sure is, buy low in a bull market and sell high in a bear market.

You have a point but I don't think it was the volatility. I think it was the market timing...stocks comove. You get the idea from it right? Price don't necessarily follow fundamentals. These investors seek liquidity compensations, which is also called liquidity premimum

It will be more interesting to know how they did that ...or what their market predictions for 2019

Oh, that's right. So he been selling put, so he been betting on a bull market. Just check the SP500 chart, it's sort of been rising last year until recently, it fell substantially. OK, I don't actually trade stocks. I trade currencies and commodities. I thought stocks comove with other financial...

That's a misconception. One good example is pairs trading, which is built based on realized volatility. https://en.wikipedia.org/wiki/Pairs_trade It's also known as a statistical arbitrage and convergence trading strategy, which was abandoned after a huge loss in the following year after it...

Sorry to step in. I am sure he will answer your question. You don't estmate the premium based on realized volaitlity. You estimate the premium based on implied volatility and that is why you trade stocks where majority of shareholders are institutions

I think he said he been focusing on "PUT" and this paid off because the market been bearish since March last year and still is and will be until Februrary is over. We will see the reversal in the trend very soon. It is sth he may want to consider into his trading.

Nice! You have fund to trade. Do you work for a fund company? It is worth note that Most stocks (those held by institutions) will go up persistently after February until around this time next year. GL

It is worth to note that all indices comove. If you are trying sth like pairs trading, the expect return will be very low compared to the risk you may have to bear

One thing any trader should remember is trading with real account is different world...I am afraid. Untill you fig out market characteristics and find ways to utilise them, it will be very hard. Statistical findings from very limited data mean very little...

It is not ok when you are in fact going against the trend and you don't know it... your account will be knocked out before you realize it.

You begun it to make money to bring happiness into life. So money is a tool to bring happiness into life. If it loses the purpose, then well, ... you saw what happened