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Since you work out: you must have seen that results accumulate (such as being able to lift more). The problem with the WSB style of trading is that the knowledg
by vijucat 7y ago
Since you work out: you must have seen that results accumulate (such as being able to lift more). The problem with the WSB style of trading is that the knowledge doesn't accumulate. It's just gambling all the way down. And you still end up spending time on it! If you'd like an easy-to-read + thin first book on options, I'd recommend Frans De Weer's "Introduction to Options Trading":
https://www.amazon.com/Introduction-Options-Trading-Frans-Weert/dp/0470029706 https://www.amazon.com/Introduction-Options-Trading-Frans-We...
- econcon 7y agoLook into Green Lumber Fallacy.
- vijucat 7y agoGood one! This actually does apply to options trading. Pricing quants may need to be masters of stochastic calculus, Ito's lemma, et al, but if you're trading and not pricing them, this analogy applies: even riding a bicycle, when described with physics equations, probably involves higher-order calculus that would put 2nd order options greeks to shame, but one does not need to understand the maths to learn cycling or even be the world's best cyclist! Similarly, if you trade the same instrument enough, you build "muscle memory" for how it moves, i.e., you get a feel for vega, vanna, et al which is almost visceral. The practitioner may use informal descriptions like, "uh oh, I can feel it bend now" rather than calculus to refer to a gamma-based acceleration of option price, but it is perfectly good enough.