Right, you see that girl over there, the one in that group that keeps looking right at you?'...'Right, let's say I'm convinced she's wearing black knickers - she looks like a black knickers kind of gal to me - and I'm so sure that's what she's wearing, so positive of that sartorial fact, I want to bet a million dollars on it. The trouble is, if I'm wrong, I'm wiped out. So I also bet she's wearing knickers that aren't black, but are any one of a whole basket of colours - let's say I put nine hundred and fifty thousand dollars on that possibility: that's the rest of the market; that's the hedge. This is a crude example, okay, in every sense, but hear me out. Now if I'm right, I make fifty K, but even if I'm wrong I'm going to lose fifty K, because I'm hedged. And because ninety-five per cent of my million dollars is not in use - I'm never going to be called on to show it: the only risk is in the spread - I can make similar bets with other people. Or I can bet it on something else entirely. And the beauty of it is I don't have to be right all the time - if I can just get the colour of her underwear right fifty-five per cent of the time I'm going to wind up very rich...
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Invest in yourself. your career is the engine of your wealth.
Not a single person has died of boredom reading this book.
So why didn't ABCP investors -- at least the large institutional investors -- have a better grasp of the uncertain nature of market disruption triggers as defined under Canadian-style liquidity? Probably because the contracts were not available for review to investors wishing to purchase ABCP -- yet another example of the lack of transparency surrounding the distribution and sale of this product.
Monetary policy does not work like a scalpel but more like a sledgehammer.
Get into Investment Banking
In life's journey, having the ability to predict the future gives us an unfair advantage. If we can understand the laws of cause and effect, anyone can predict the future. What we do today leads us to tomorrow's destination.Why does this simple truth seem to be difficult for most people to understand?
The struggle for Financial Freedom is very unfair. Just look at the rewards.
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Finance is the art of passing currency from hand to hand until it finally disappears
They don't try to trade 'reality', they try to tradeother people's perceptions of reality. If a market is dominated by enough technical traders, it could lapse into a 'postmodern' state, with traders trading perceptions of perceptions of reality.
Gold belongs only in the portfolios of fearmongers and speculators. If you own gold in your portfolio, expect to not get paid an income, pay higher taxes on your returns, take a more volatile ride than the stock market, and get a long-term return lower than bonds.
I make 2+2=5, and I get to keep the remaining 1 that__ not really there. I truly am a Master of the Universe. I don__ just do __od__ work,_ as our CEO once put it, it__ more like I__e actually become a god myself.
Rather than be fearful and sell out at the worst time or get greedy when the market is way up, investors should control their emotions and not only avoid panic, but embrace the market volatility for what it is: an opportunity and a gift. Suffocate the instincts that want to make you a bad investor and rather embrace the chaos that normally causes them to rise to the surface.
God is looking for godly people to send to the world of finances to subdue it for him.
Making a product is just an activity, making a profit on a product is the achievement.
The alluring, long-shot chance of a huge gain is the grease that lubricates the machine of innovation.
Don__ expect investors to be throwing millions on the table for you to go off and buy a bigger house, get a new car, party half the week away, and generally upgrade your lifestyle.