Emanuel Derman: There’s Enough Math in Finance Already. What’s Missing is Imagination.

Mr. Derman delivers a good point in this short video without using math jargons. All these mathematics being used nowadays by the financial institutions are really glamorous excuses to either get clients to deploy their money so that the financial institutions can make money from the transactions, or, to place bets hoping the counter-parties are dumb enough not knowing the potential risk involved.

Retail trading against all these big players with calculated bets and those market making bots nowadays takes someone to think outside the box in order to win the game. Using analytical tools touted by the industry is a sure way to be cleaned out as the possible decisions you can make based on such tools are completely anticipated by your counter-party. This means understanding the structure of price movement is more important than ever as trading on the right side of order flow will give you the ability to ride the moves without being countered by the size players.

Smilingsynic’s Five Minute Flip, my STOPD and custom breadth analysis are concepts that capture the structure of the markets for which the staled financial industry cannot and will not believe in. This gives us tremendous advantage to stay ahead of the game. It is indeed being able to imagine a better way to project the future that keeps us profitable year after year.

Related Resouces

Smilingsynic’s Five Minute Flip presentation

Smilingsynic’s article Trading While Making a Living

Custom Market Breadth on US Stock Markets

Special Theory of Price Discovery (STOPD)

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