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As a gambler. To make money.
by sydthrowaway 5y ago
As a gambler. To make money.
- PaulHoule 5y agoStudy "market making" in the stock and options markets. The most important concept to understand is https://en.wikipedia.org/wiki/Kelly_criterion https://en.wikipedia.org/wiki/Kelly_criterion That is, you make money trading if you have a predictive model and use Kelly to turn that into bets. See this book https://www.amazon.com/Dr-Beat-Racetrack-William-Ziemba/dp/1635617200 https://www.amazon.com/Dr-Beat-Racetrack-William-Ziemba/dp/1... for a strategy that still works and an example of "predictive model + Kelly". (e.g. that strategy still works because anybody who masters it and would scale it up goes on to Wall Street and plays for bigger stakes)