Tom Sosnoff shares his most important "must-have" skills to build a future in finance. This is a presentation he has never done before. You will be challenged!
He was talking mainly about options, which is completely cryptic without proper education. Options are technical. I see you're far from understanding anything about it.
go to 35:30 to hear the ten things you need to know- otherwise Tastytraders find nothing new here. And it isn't trades, it's "approaches". (Derivatives, Futures, Pairs trading, Basis improvement, basis reduction, Arbitrage, yield curve, hedging, volatility, digital currencies, selling premium.)
RECAP (for the vast majority of you for whom it won't make sense, seek options education. You won't find it in social networks, just a hint). 1. Understand how derivatives strategies work 2. Understand the futures business. "For it drives the securities business". Most amount of leverage, most amount of liquidity. 3. Pairs trading. Understanding the correlation between correlated underlyings (unaudible!). How correlation works, how price divergence works. 4. Trading volatility as a mean reverting value. There is no such thing as mean reversion with respect to price - it is completely subjective. Whence volatility is truly mean reverting : there's a math model behind it. With price, it's just subjective. Understanding that, and looking for opportunities that way, "is kinda neat". 4. Yield curve. Being able to articulate interest rates and the yield curve. Very important :once you get to a certain level, everybody cares about interest rates, and yet very few people can understand them. A young person that can explain widening and tightening of interrest rates and how that yield curve works, "is very impressive". 5. Val orb. The essence behind the entire professional world of finance. Understanding volatility, knowing how it works, and its expected move, and how correlation plays a role with respect to premium and volatility is a special skill, and very few kids have it. 6. Hedging. Knowing that individual stocks, individual underlying, are very difficult to hedge, and probably not worth it. Because the expected move is greater than the realized move, you have to pay the price of that expected move, which means it doesn't work (or it's not worth it). Hedging is a portfolio of things. Understanding essentially that volatility is a measure of fear, is a measure of expected move. As soon as you learn how to take advantage of volatilty, because you understand what it really is - "fascinating stuff". 7. Digital strategies; get what it is. Being able to undertand blockchain, various currencies, just to make you well rounded, informed, (...). 8. Selling premium. It is critical to understand how it works, the logic and the math behind it, because it is the one way to take advantage of outsized volatility. 9. Lastly, basis improvement. The key to long term, scalable, repeatable success.
@@moneybags6840 Ever heard of gratitude and the word Thank You. Learn and practice them more often. They’ll make you a better person and even a better trader.
I really like Tom Sosnoff's explanations of what is really important to understand about the markets. He has a great common sense approach and is excellent at explaining complex financial issues in a simple yet entertaining fashion.
He was talking mainly about options, which is completely cryptic without proper education. Options are technical. I see you're far from understanding anything about it.
@@jackbarhillel1065 you are arrogant af. Also your comment makes no sense. You basically admitted you know nothing IN your post. It is not cryptic to those who know who this is and what he was going to talk about Of course its about options and trading the market... that's what he was there to talk about. I see your are far from understanding anything about that.
He was talking mainly about options, which is completely cryptic without proper education. Options are technical. I see you're far from understanding anything about it.
I didn't realise that I learned so much rubbish stuff until I watched this video. Thank you Tom for your great content which sets a correct direction for us to learn and work towards to. 👍👍👍👍👍
Me listening to this and thinking about all the great opportunities in stock market during the pandemic and also the slow recoming to normal life where there are more jobs than people can have
How strange when they taped this, they did not shoot the slides played on the screen. I thought he had no slides. I only realized he was using slides when he said at one point that "this is my last slide".
First of all, Tom has to boil down a topic that is arcane and powerful as we who operate knows. Second, he is gracious in the fact that the mic doesn't work perfect. Just like options trading. If you don't get the analogy, go sell real estate. No, I don't know this man, he is trying to say something complicated in terms the audience can understand.
Hi Money Show or Tom. Can you please list the Top 10 that Tom listed? I watched the whole video but the audio cut in and out when he was listing them. Thanks!
"Wealth is not created from being right. Wealth is created from being smart." This guy has so many quotables "How can you have scalable success in random markets?"
Please recommend one best prop firm you would deal with now & WHY. In traders Prop Accounts is Hedging Allowed(firm names)? Also For Hedged positions Is any margin required after hedging is completed? For open hedged positions carried overnight how is daily loss limit calculated next day of trading?.And thank you.
I think it's funny that his first point on what he thinks is important to understand, I don't even understand the 2 things he said before that weren't important to him. The scholes model (heard of it) and the math behind the greeks (still working on that one). Really lets you know where you stand among your peers in comprehension.
I'm slowly slowly getting there. Thank God I realised all the many charlatans lurking before I fell for it ( some MFer will reply to this " wow I lost so much $$ before I met X. email him for results! wow!")
I didn't get it. Why make a portfolio flat? Isn't there a way to make a pure vol play if that's what you want to do? Otherwise if you want to make it flat, and willing to overlook tax implications, just close all positions. Ah, "flat" in terms of a single underlying, eg delta neutral in terms of SPY. Not delta neutral for all deltas
Go ahead sell puts on futures. The first crash next year or 2 years from now you’ll blow up your account and owe the broker money. You’ll get margin called long before put goes itm from iv expansion. Very dangerous to do this. Ask Karen the super trader about blowing up account without your puts even close to the money.
All of this only works on the subset of corporations that increase quarterly profits. Once consumer spending slows down, once corporations go out of business, trading is irrelevant. This guy runs a brokerage firm and his main job is to get people on his platform to trade options, where he makes commission. Good luck trading in a market where your competitors are computers and quants.
Two thumbs down 👎🏻👎🏻, content sounds convincing to the untrained ear but holds no merit. The stockmarket doesn't operate on any of this information because the stockmarket is controlled by individuals and data points are just explanations of past & present actions of said individuals. Like Tom the speaker said and should have taken heed, the stockmarket doesn't care what you think you know. 😎
@@junal27 I've watched their daily videos a few years ago. From what I remember they over trade. In essence things with high implied volatility they will trade....sometimes products have high implied volatility for a reason.
@@Doc_Ozzo isn’t that the essence of trading premium as a writer? Trading volatility and reducing delta exposure is part of the game, if you master it you make a good money
@@junal27 So, I have been trading and investing consistently for 7 years. I find what is most helpful is to construct the appropriate market narrative. You can use market profile, technicals etc to help you build your narrative. You then trade around this narrative in products you are comfortable with. For me that's QQQ/SPY/TLT and a handful of others (I like the MWF expiration on QQQ/SPY. Selling puts/calls because of high implied volatility alone is not the best approach.
Shadow Trader is a good example of building the appropriate market narrative, I don't copy his trades as I do my own thing. But check out his videos, fairly solid.
