Do It Yourself Masters in Financial Engineering

Post by noname123 » Sat, Jan 22, 2011, 11:51 PM UTC

genera wrote: post #36

noname123 wrote: post #12

DIY Financial Engineering: 1. Sign up for an Interactive Brokers account; state that you want to trade options. 2. Transfer >25K (day-trading capability) or whatever is reasonable amount money for you. Enough for you to care about but not over the amount where if you lost it all, you'd lose sleep over. 3. Now use the highest/lowest volatility scanner and buy/sell some options randomly in that list; max out your real…

By following Step 3, you will lose much more than whatever the amount was in Step 2.

Post by Nrsolis » Sun, Jan 23, 2011, 1:47 AM UTC

fuzzythinker wrote: post #28

joshkaufman wrote: post #3

This is exactly what I did with business, instead of getting an MBA or a PhD. Here's my reading list: http://personalmba.com/best-business-books/ Here's the book I wrote, condensing what I learned in the process: http://www.amazon.com/gp/product/1591843529/ I now own my own business, work for myself as a business teacher and consultant, have an enormous amount of flexibility in my day-to-day schedule, and make more t…

Wow, incredible reviews, just picked up a copy ;)

Post by [deleted] » Sun, Jan 23, 2011, 5:43 AM UTC

noname123 wrote: post #53

Eliezer wrote: post #51

Earlier quoted context omitted.

Who on Earth was voting this up? Does nobody comprehend the concept of a not-easily-exploitable market anymore?

That's why you should plan to lose all of that money. The goal is to extend your capital loss for as long as possible while executing trades, so you can learn how to trade options; which will teach you better than a FE program can because that's what FE is all about, numerical methods/pricing model/back-testing for derivatives and hedging.

Post by gcb » Sun, Jan 23, 2011, 7:01 AM UTC

joshkaufman wrote: post #27

dagw wrote: post #23

Earlier quoted context omitted.

I'm not the original poster, but I've found that most 300 page business books contain 10-20 pages of useful info and 280-290 pages of fluff and filler. I generally skim through the average business book in an hour or 2, including the time to make notes of all the potentially useful advice I find. It's rare to find a business book worth carefully reading cover to cover.

That's exactly what I do, only I've practiced enough to cut the time per book to 10-20 minutes, depending on complexity. Reading for information extraction vs. word-for-word is much more efficient, and if you practice, your comprehension and retention is just as high. It's not uncommon for me to go to the library or B&N and read a stack of 20-30 books in a few hours. I've been reading business books for six years, an…

Post by crasshopper » Sun, Jan 23, 2011, 9:42 AM UTC

gahahaha wrote: post #24

"""But you pay someone to indoctrinate you with exactly the same methods and formulae that all of your competitors are using. Then you expect to come to not just a different conclusion, but a market-beating conclusion? That just sounds dumb.""" Counter argument: Creativity entails not only novelty (that outside the box stuff) but also utility, and in order to be useful, it has to go above-and-beyond what is already k…