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Agreed. This part seemed like an exaggeration to me: > Hitting a market’s ceiling like this was something that none of my methodologies accounted for. I worke
by yellowstuff 9y ago
Agreed. This part seemed like an exaggeration to me:
> Hitting a market’s ceiling like this was something that none of my methodologies accounted for.
I worked at a bank in 2008. The biggest blowup in recent memory then was LTCM in 1997 (seems quaint now), which blew up partly because they had positions too large for the markets they were in. It is simply not credible that someone would put on a huge position in 2008 and not give any thought to the impact their own trading would have on prices.
- TuringNYC 9y ago>> It is simply not credible that someone would put on a huge position in 2008 and not give any thought to the impact their own trading would have on prices. And yet it keeps happenning, see "London Whale": https://en.wikipedia.org/wiki/2012_JPMorgan_Chase_trading_loss https://en.wikipedia.org/wiki/2012_JPMorgan_Chase_trading_lo...
- yellowstuff 9y agoGood point, it is surprising this keeps happening. There was difference, though. The London Whale got too big for his market, but I don't recall him ever suggesting that he hadn't even considered the effect his own trading would have on prices.