The original retards of trading: LTCM
- Thread starter Pekelo
- Start date
I think what most people are pissed at, they can't do it with their little 10k account. However, if they spent five years studying, keeping very open minded and learn risk management, one can lower their overall risk then figure out how to get others to pay for it.
But who wants to study for five years?
You can go to California and sell earthquake insurance, if it hits, walk away.
Duh stoopidist guys in da room...
I can't read OP's post... have him on ignore.
However... the "big brains*" behind LTCM were "stupid as a box of rocks". The smartest guys in the room can't even hope to prevail over the markets with 100:1 leverage. All it takes to "bust 'em" is a 1% noise counter-move. Gotta be a fool to hope you can get away with less than that!
* A "hundred PhDs" they had behind this. Who/what could be smarter? (Well, the Fed claims to have 100 PhDs, and they have yet to see a recession "coming". Ever hear the expression, "A fool and his money are soon parted"?) Pfft!
Last edited:
Newton was flying high until Einstein came along and published a paper in 1905.
Newton was a genius.
Newton also used leverage.(?)
And also Newton... Blew out
View attachment 242065
Guy told to all of his students, to never again , mention any financial securities.
Yepp, that's basically what the asset management industry is all about.
Only difference is that he wasn't a financial/option genius like Scholes. Those people at LTCM did this for a living.
But you bring up a good point. Smart people in one category often think they are smart in several other categories. [cough] Elon Musk [cough] That usually leads to hubris.