Wednesday, July 27, 2011

Complex Things

July 5, 2011
Experts warn of hidden danger of complex investments

Saker Nusseibeh and his team oversee investment for the giant BT pension fund and a string of other large funds. He despairs at the re-emergence of financial complexity.

"We are in the only industry that likes complexity," he said.

"In art or in science, the crowning rule is, 'the simpler it is the better'.

"It seems we have done exactly the opposite - the more complex a thing is, the better it is perceived to be.

"If we are making it further complicated, I question the motivation," he added.

Now what you need to do right now is avoid these six things. Trading options is not... shouldn't be difficult as long as you follow a proven principle and practice until you get it before you ever put any real money on the line.

I have no proven principle that allows me to always make money when trading against Goldman Sachs. I do have a rather simple phone that I have managed to master though. That's something I guess.


Watchtower said...

"A man's got to know his limitations"

Chock full-o-truth!

Stagflationary Mark said...


Here's some bonus full-o-truths. Hahaha! :)

Mr Slippery said...

OMG! He didn't even cover diagonal spreads. Of course, you gotta combine diagonal with horizontal and vertical spreads to go 3D and beat the high freq algos, yo.

Watchtower said...

"There is no stupidity that cannot ensnare you, no folly that cannot suck you in. As Dirty Harry famously said, “A man’s gotta know his limitations.” The more clever you seem to yourself, the more likely you are nearing some hard object about to strike you upside the head."

From JR Nyquist's classic article 'The Power Of Negative Thinking'

Who Struck John said...

"A man's got to know his statute of limitations," that's the Goldman-Sachs version ...

Stagflationary Mark said...

Mr Slippery,

Your sarcasm cup overfloweth! :)


I think I live it!! Better safer than sorry.

Who Struck John,

LOL! I do love word plays. Outstanding!