Trading (and trade in general) in its true fundamental form is not about mathematics at all, not even one iota, but is basically about buying and selling, profit and loss. To calculate profit and loss, a knowledge of basic arithmetic is sufficient.
Its fundamental principle is to buy low and sell high, and not necessarily in that order. The complex mathematics of pricing and hedging is no more and no less than finding ways to achieve the above principle.
The truth about trading is exemplified in many excellent books. Reminisces of a Stock Operator has a number of trading strategies that work when the volatility is low.
However, allied with Trading is the role of Risk Management, which are more about how you can manage your trading activity in a mathematical way so that you can trade robustly regardless of external conditions.
Its fundamental principle is to buy low and sell high, and not necessarily in that order. The complex mathematics of pricing and hedging is no more and no less than finding ways to achieve the above principle.
The truth about trading is exemplified in many excellent books. Reminisces of a Stock Operator has a number of trading strategies that work when the volatility is low.
However, allied with Trading is the role of Risk Management, which are more about how you can manage your trading activity in a mathematical way so that you can trade robustly regardless of external conditions.
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