Quote:
Originally Posted by Dollarmansteve
Nope, I'm not nearly wealthy or risk-loving enough to play with that kind of leverage and volatility.
The people who trade futures and futures options are rich and nuts. Typically they have 5M - 10M in their account to play with and eat up $500k swings like it's nothing. The index derivatives traders are the craziest - the guys who trade index futures can lose (or make) $500k in 1 minute. It's pure gambling.
I used to work in the financial industry and have some friends who trade commodities and financial derivatives, so I still like to keep up on what's happening. I love charts (japanese candlesticks rule)... I could study anonymous charts all day.. they tell you everything you need to know about any stock/future/option/index/etc (yes I am a proponent of efficient market theory).
Back to oil - the long term trend is up, there is no escaping it. Sudden violent swings up or down are only relevant if your time horizon is short. If you look at any oil chart.. $140 / $150 prices were stupid.. there was no trend to support it. Markets work, traders look at charts and irrationality always unwinds. Timing it is more art (and luck) than science however... people get burned when they get myopic.. when they lose sight of their underlying timeline.
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Yeah, I've seen you mention this before. If I hadn't seen you mention it I probably would have guessed you had a background in finance as your posts are usually spot on.
Who were you working with when you were in the industry? I worked at BMO Nesbitt Burns private client group out of First Canadian place for a while. It was something I decided I didn't want to do at that time in my life. I might go back when I'm older although I'm already 35
. I do miss the people I had the opportunity to meet and the after work parties weren't too bad either.
