fantastic interview. a tip for future videos: if you record about a minute or two of audio in the room when no one is talking and then add it over the sound of people talking, it'll be less jarring when a person stops talking--the audio won't go totally silent. That technique is called adding "room tone"; I learned about it while making short films in college.
Very well said selling insurance --selling options the rare event that Talibi speaks about. It happens more often than you think. Buying options -- options usually expire out of the money so they usually lose but you limit your losses are limited to the option cost. But the occasional win outweighs the limited losses because the profits can be inifinite ( at least with calls). The return can be asymptotic because as they approach the money the delta increases or the rate of return increases.
Hi Mathias . As far as reversing your position. This reminds me of the trade I put on last night. I was long gbp/jpy there has been a good support zone. So I set my stop below the support zone and also entered a limit order right below my stop {meaning short order if support is broken} My stop was hit my new position entered and due to the majority of traders being long with stops near mine along with short orders for a downside breakout in 5 minutes pound was down 100 pips.
@ aqeel3344: Jack obviously answered this question right at the beginning of the video. He basically started to write the Market Wizards books in order to learn from the best.
at 6:15 - 6:30 "he ( Ed Thorpe ) was using the B - S formula and making so much money , he didn't want to publicize it" - That's what happens in the real world. All these people that want to 'sell' or teach you their secret of making money or winning in the markets AREN'T really making money in the markets..they are making money SELLING their idea of "making money in the market' to suckers like you. If they were really earning from the market, they wouldn't waste time to teach or sell their method or "technique" to anyone .
I agree on some levels, but its not true that successful traders wouldnt want to teach others how to trade.. its just that there are many sharks who actually know little and try to con so many.
Not true at all. Some people are making loads of money in obscurity. But desire some recognition. Look at Toby Crabel, he published a book, then realized that was a mistake and refused to reprint it. That book goes for upwards of $2000.
Wrong. Ed Thorpe is in a completely different industry than most 'Gurus'. Most gurus operate im the retail space, theres only so much money to be made due to capital limitations and selling courses can become a major income source for some. However hedge funds dont publicize because they are making hundreds of millions of not billions with theit secret formula. These are 2 completely different spaces.
That is correct Tony, Arnold was born in Southern Austria and I in Southern Germany, so for us German is the first language. I didn't make it to Hollywood though, just to Opalesque.TV ;-)
Risk is a distribution function as it is taught in statistics courses but volatility is just one single piece of information (second moment) about that very risk distribution above , hence risk of any investment always exist but volatility (SD) may or may not exist depending on the type of distribution function and if this distribution even exists
Intriguing introspect into R.Dalio and Bridgewater Pure Alpha..My portfolios annualized net gains with Brevan Howard are the best..seems they have talent finding asymmetrical outcomes in equity others just cant match.
Traders biggest enemy is trend flipping on A dime(e.g. 1H/lower time frame trend).Trend on 4H chart is the best trend guide for majority of forex traders( if one keeps trades for 2-5 days). By the time trader realizes that trend on daily chart is up, market has already gone up about 3-5 days & if you ask supercomputer for the mathematical odds, computer tells you that odds are negative right from the start.Trend based on the last 5-10,four hourly candles has enough players/juice behind it so that it would not flip on A dime, so trader has decent chance to make something without buying overpriced asset. We seek your wisdom?
the people who talk down here the supertraders in that book, not only they didn't read any page in that book, they wouldnt understand what is written even if they tried to read it, because you need to actually know trading before reading schwager book, that text is not for everyone yet everyone can comment here on youtube, poor fools @lafayette mitchell the interviews in the book are NOT about any methods or ''techniques'', you didn't even open a page in that book
Investment managers can book a free 1:1 session with Matthias Knab and get one or more of the following : - "Ask Me Anything" Session - Pitch Deck Review - Presentation Audit - Presentation Coaching - Distribution & Digital Marketing Review calendly.com/opalesque/ With 30+ years experience in information technology and finance, Matthias Knab is one of the most followed experts and thought leaders on alternative investments.
A note to Jack draw down verse percentage gains should not be looked at the same in the options markets especially just buying calls and puts. Due to the opportunity to gain several times your risk alters the relativity. I can risk 2% and bag several time my investment. Coming back from a drawdown even minimizing risk to do so can be much faster then the same percentage down trading stocks. So you can have drawdowns that may look worse then stock traders but in reality your trading is less risky
lol if u are a trader u know it is very hard to reverse tour trade! I have met many traders in life plus myself, none have gone reverse the trades. It is easy to say than get it done.
By the time you try to reverse. The energy and courage it takes just to take losses is a handfull by itself already, and to reverse after that is too much for some people. I can relate. Dont know if we're on the same page here.
He's absolutely right about the challenge facing traditional trend-following models. They no longer work as well as they did before due to choppier conditions and false breakouts.
