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- Thread starter met1989
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What was the question?
Come onnnnnnn!!!
It's THE question!!!
It's, like, Great!!!!
And it's
And it's
And it's about, like, LIFE!!
Y'knowwwwww?
But like, it's more than that......!
((I'm sorry -- I don't mean to take us out-of-canon here,
but wouldn't this be a great place for an Al Pacino bit?))
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I know it's about Life. About what was the specific question about life? Life is a HUGE topic. What was THE specific question that was asked that resulted in an answer of "42"? Do you know? LOL If you do know, please, share with us!!
Dynamic Hedging is not New. Lot's of information in book form as well as free info on the internet. This includes information on "Gamma Scalping". Can a trader understand the concepts presented for years by authors, so-called "Gurus" of trading, like some who are named and respected as posters here on ET, along with reading Sheldon Natenberg, as well as Nassim Taleb, and numerous academic papers on the subject, and Profit from that effort? This is not something that should be treated lightly -- it is a method of trading that has Proven to be of value for a long time. Sure, this leads to perhaps what one might call, "A Dangerous Rabbit Hole". Is it hard to learn and properly employ for the retail trader? NO.
First, understand Options Pricing. How and why option pricing responds to volatility, and the relationship to the underlying future pricing. This can be understood rather quickly. When trading "hedged" not "naked", we as traders may learn to Dynamically Hedge as opposed to utilizing stops or what may be called "Static Hedging".
The question of when to hedge, and what risks we are transferring with the appropriate hedge, is what must be learned to accomplish the goal of consistent profits. (Now some are thinking why am I willing to share? -- The answer is why not.) As an aside, why do we even bother to read or post to ET or other forums. Is to impress others? Or to massage our own Ego's? Is there value to inferring that by our posts we are trying to damage or make fun of other's posts? Why I am including this reference to the current post of How to use Dynamic Hedging? I am not here to get into a contest with others on the efficacy of using Dynamic Hedging for their trading. Nor am I trying to be a Serial Poster rather than just trading.
Sorry for venting, while trying to provide a clear answer to @traider who asks for some insight into a valid discussion. It is tiring to post to ET. So, trade with stops instead of hedges if you find that more to your liking, day trade or position trade and make lots of money.
Unfortunately, I am not aware of a book or course that would provide a quick step by step answer to trade with dynamic hedging. If someone here as that answer I would love to have it as well -- not for my own use -- but to pass on to others. I trade all the time with dynamic hedging, it works for me as well as many others -- and Yes, it can be learned rather quickly with just minimal understanding and practice and not a lot of books.
"You know," said Arthur, "it's at times like this, when I'm trapped in a Vogon airlock with a man from Betelgeuse, and about to die of asphyxiation in deep space that I really wish I'd listened to what my mother told me when I was young."
"Why, what did she tell you?"
"I don't know, I didn't listen."
"Why, what did she tell you?"
"I don't know, I didn't listen."