The types of derivatives and exotic derivatives that are traded are pretty amazing. You can take positions on everything from interest rates to weather, from pig futures to soybeans.
You haven’t seen anything yet. The number of items that can be traded is increasing, another sign of advancing technology and the the continual search for new wealth building opportunities.The types of assets you can trade is also becoming more varied.
Just take a look at Intrade.
Intrade is a prediction market that’s drawing a lot of interest. The prediction market allows people to trade typical commodities, like gold, oil, and currencies. Political outcomes, like the 2008 Presidential elections, are among the most popular trades on Intrade.
But, there are markets for a wide and weird range of other assets and scenarios.
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Accelerating Technology, Internet, Investing, Money, Online Investing AI
futures, gambling, intrade, prediction markets, trade, trading
Picture courtesy banspy @ Flickr
Trading and gambling have been metaphorically tied together forever.
Traders talk about making a bet. They say they hit the jackpot, or they left their money on the table.
Trading and gambling, after all, do share commonalities–risk, returns, a certain element of randomness, and position sizing–to name a few.
But the comparisons, or lessons, don’t stop there.
According to a new study from Cornell University, investors and traders can all learn from a slightly contrarian gambling strategy. The study makes the case that online poker players who win more hands, end up losing more money.
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Accelerating Technology, Automated Trading, Business Strategy, Dreams Come True, Internet, Investing, Money, Online Investing AI, Success, US Economy
discipline, gambling, Investing, Money, money management, poker, risk, wealth
lrargerich@Flcikr
Terrance Watanabe had it all.
He owned THE most successful import-export business in America. He had the big house and the nice cars.
He sold his business in 2000 for an enormous sum of money–experts expect it was in the hundreds of millions–and possibly the billions of–dollars.
Bucking the common stereotype of the rich CEO, Terrance never became a snob. He started a philanthropy and was known as a big tipper.
Yep. Terrance had it all. Including a huge gambling problem. The Wall Street Journal reports he lost nearly $127 million in a now legendary alcohol-fueled gambling binge. Before we get all high and mighty judging Terrance’s idiocy, we should take a step back and wonder what lessons we can learn from Terrance’s fall.
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Investing, Money, Online Investing AI, Success
casino, debt, emotions, gambling, Money, odds, problem, trading, Wall Street Journal
Flickr picture--Roadside Pictures
Money isn’t the root of all evil; risk is.
Risk is an attempt to scientifically categorize the simple truth that, since a better analogy escapes me, shit happens.
Risk makes fortunes and destroys fortunes. It’s ruined banks and created them. Risk has sent traders to the mansion… and the poor house.
But, just as it never says in the Bible that money is the root of all evil, but the lack of money is the root of all evil, so my pithy phrase that risk is the root of all evil isn’t quite on target.
It’s the lack of understanding of risk that is the root of all evil for investors and traders.
So, how can you make friends with risk? Here are six tips to help you make risk your friend:
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Automated Trading, Business Strategy, Investing, Online Investing AI
casino, gambling, investments, risk, risk averse, trader, trading, trading accounts
The types of derivatives and exotic derivatives that are traded are pretty amazing. You can take positions on everything from interest rates to weather, from pig futures to soybeans.
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
