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Hacker's Guide to Printing Money in the Stock Market
- vitriolic 17y agoAre you kidding me? Keep writing naked puts and then compound it by assessing your risk based on historical data. This is a surefire way of loosing your shirt when the next Lehman level event comes around. The risk in your strategy is that the stock market has very fat tails and unlikely events happen with more regularity than they should -- and the math that you're using to assess your risk discounts all these events by terming them unlikely.
- lani 17y agospelling watchdog says: 'lose' not 'loose'
- davidwurtz 17y agosure. you've got to watch out for black swans..you should certainly shouldn't plan your portfolio around such a thing. You may as well put your money in CDs.
- bjoernw 17y agoJust play a round of poker with friends. Only rational way to invest: http://en.wikipedia.org/wiki/Modern_portfolio_theory http://en.wikipedia.org/wiki/Modern_portfolio_theory
- rfreytag 17y agoThis is empirical nonsense. Market-behavior is not normally distributed so basic statistics and even portfolio theory just puts you back in the same situation as Lehman Bros.. http://fora.tv/2008/02/04/Nassim_Nicholas_Taleb_A_Crazier_Future#Nassim_Nicholas_Taleb_on_Mediocristan http://fora.tv/2008/02/04/Nassim_Nicholas_Taleb_A_Crazier_Fu...
- davidwurtz 17y agoOnly apply the theory to stocks you'd like to own. I acknowledge the strategy isn't risk free (no strategy is), but if you're going to buy a stock, considering using this strategy instead.