5 ms·

Kudos to the product guys. They have figured out the demographic of their product with clinical precision. In Last 6 months, I have used RH app lot more than FB

Kudos to the product guys. They have figured out the demographic of their product with clinical precision. In Last 6 months, I have used RH app lot more than FB. Nothing is as addictive as using leverage to trade options and Crypto.

sushid 8y ago
I have no comment on crypto but if you're "addictively" using leverage to trade options, I hope you're only playing with your throwaway money. You are practically bound to lose money to institutional investors when playing with options.
- 1996 8y ago
  Agreed. I would urge caution, even if I am "pro crypto" Only play with money you can afford to lose without even a sad face
- opportune 8y ago
  I’d argue that if you’re playing with options on industries or companies you know well (not your employer though) you may even have an edge over institutional investors. Unfortunately it’s not possible to buy calls on pre-IPO companies though
- a13n 8y ago
  > You are practically bound to lose money to institutional investors when playing with options. Source? Explanation?
  - hangonhn 8y ago
    Do most non-institutional/non-professional traders even know how to price options other than some gut feel? Are they familiar with Black-Sholes and the Greeks? From my personal experience most of them don't. Plus to properly model these things requires quite a bit of research and calculations. At the hedge fund where I worked, there were well over 600 top of the line Xeon servers running to constantly pull in data and crunch the numbers. This was in the early 2000s. Things are probably even more lopsided now. Trading and finance are professions in the same sense software engineering is (there's quite a bit of overlap in skills too). Unless you're a professional who has the time and resources to do it, you're at a severe disadvantage and are going to lose in the long run.
    - tedunangst 8y ago
      One possibility is getting leverage via deep in the money options, which are very easy to price. But I guess that's not what most people are talking about. But also, spreads are pretty tight for close dated near the money options. Just assume the price is right, pick a direction, and trade...
      - sushid 8y ago
        Sure, you'll make money 99.9% of the time but the time you don't, you'll be losing your money and then some.
        tedunangst 8y ago
        But that has little to do with whether you have 600 xeons to run black sholes.
  - georgeecollins 8y ago
    I don't know if you will lose money, but here is why I suspect you might: https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/0471770892/ref=sr_1_1?ie=UTF8&qid=1531511167&sr=8-1&keywords=where+are+the+customers+yachts+by+fred+schwed&dpID=51l-Re8XPLL&preST=_SY291_BO1,204,203,200_QL40_&dpSrc=srch https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/...

sushid 8y ago

I have no comment on crypto but if you're "addictively" using leverage to trade options, I hope you're only playing with your throwaway money. You are practically bound to lose money to institutional investors when playing with options.

1996 8y ago
Agreed. I would urge caution, even if I am "pro crypto" Only play with money you can afford to lose without even a sad face
opportune 8y ago
I’d argue that if you’re playing with options on industries or companies you know well (not your employer though) you may even have an edge over institutional investors. Unfortunately it’s not possible to buy calls on pre-IPO companies though
a13n 8y ago
> You are practically bound to lose money to institutional investors when playing with options. Source? Explanation?
- hangonhn 8y ago
  Do most non-institutional/non-professional traders even know how to price options other than some gut feel? Are they familiar with Black-Sholes and the Greeks? From my personal experience most of them don't. Plus to properly model these things requires quite a bit of research and calculations. At the hedge fund where I worked, there were well over 600 top of the line Xeon servers running to constantly pull in data and crunch the numbers. This was in the early 2000s. Things are probably even more lopsided now. Trading and finance are professions in the same sense software engineering is (there's quite a bit of overlap in skills too). Unless you're a professional who has the time and resources to do it, you're at a severe disadvantage and are going to lose in the long run.
  - tedunangst 8y ago
    One possibility is getting leverage via deep in the money options, which are very easy to price. But I guess that's not what most people are talking about. But also, spreads are pretty tight for close dated near the money options. Just assume the price is right, pick a direction, and trade...
    - sushid 8y ago
      Sure, you'll make money 99.9% of the time but the time you don't, you'll be losing your money and then some.
      - tedunangst 8y ago
        But that has little to do with whether you have 600 xeons to run black sholes.
- georgeecollins 8y ago
  I don't know if you will lose money, but here is why I suspect you might: https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/0471770892/ref=sr_1_1?ie=UTF8&qid=1531511167&sr=8-1&keywords=where+are+the+customers+yachts+by+fred+schwed&dpID=51l-Re8XPLL&preST=_SY291_BO1,204,203,200_QL40_&dpSrc=srch https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/...