With the advent of the internet and home investing, anybody with the money can invest in futures, cfds, options, bonds or even plain old stocks on all major financial markets.
Given that trading is still inherently a game of probability, odds and strategy. Is the international financial market the greatest casino ever devised??
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Tags: advent of the internet · bonds · financial markets · futures · game · international financial market · money · odds · probability · stocks
I read alot recently about CAPM and the Kelly critetion, but I find some major flaws among them…
For example:
CAPM:
The stock beta seems to be incorrectly measured in the classical CAPM model, you can read this book by a Prof. from Oxford who explains that the beta can be substituted and measured using alternative formula, more [...]
Tags: beta · bettor · capm model · chelsea · futures · google · john kelly · kelly criterion · liverpool · match · oxford · point of view · probability · stock · wtz
Using greeks, i can ascertain the probability of an option being exercised. How can I use the probability and volitilty to determine the best risk/reward option to trade? I have been trying delta neutral strategies – do you think that is a valid approach?
Thanks Zman. I was hoping you would answer. It’s [...]
Tags: delta · greeks · mentor · neutral strategies · option prices · probability · reward option · risk reward · suggestion · valid approach