I could not resist but to write this because of the dummies that i've been around for a while. As a matter of fact, some of them have a year or two of college education; nonetheless, they still would behave very naively when it comes to threshing out trading strategies. No matter how you explain them, they would still believe that trading is just a fun-gamble. Forget about the rocket science that traders lately study to figure out the intricacy evolves around it, they don't even want to give a damn about basic knowledge of finance or economics. One of them has few of the online trading accounts, and the other girl plays with e-trade on her i-phone; besides them, another one has one of those 'Trading for Dummies' book, and literally advises me to learn from it regardless of my degree in mathematical finance. However, when i ask about their strategies, i get almost similar tepid response from them--they watch CNBC; they know how to click on 'Buy' and 'Sell;' one of them tells me that the Fed has cut the interest rate so i should go 'long;' the other one suggests to buy treasury bonds in somewhere in Queensland or Iceland cause the U.S economy is down, and so on. To them, it's a whole shenanigan that depends on nothing but pure luck. So i ask, why the hell we need the Federal Reserve System contributed by hundreds of Ivy league PhD grads, while these idiots could run the capital markets with all their tricks. If you try to present a logical argument, they will dismiss the fundamental facts--stochastic calculus, monte carlo simulation, econometrics, Real analysis, Discrete Structures, Risk Derivatives, Quant methods, application of physics in problem solving, algorithmic trading, hedging methodologies--that are quintessential for modern day trading, and convolute these ideas with their stupid luck theory.
Unfortunately, these people come from a specific zone of a foreign nation, and I don't want to stereotype as it is unethical. Nevertheless, for this particular group of people, i have to confess that they are real dummies, and their favorite book says it all.
Monday, March 24, 2008
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