Crude Fall – A Game Changer for World Economy

  Crude Fall  - A Game Changer for World Economy Petrol in your Bike & diesel in your car, should you concern about falling crude? One should be happy. But eversince Crude touched  6 years low & the whole world is talking about…

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Trend Following – India

Trend Following – India Trend Following – Focus on Absolute Yield “Trend Following” or “Be on The Right Side” is a trading system based on the principal of price analysis. Trend Following tries to take advantage of long, medium or short-term moves of…

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There are many myths about derivative strategies

There are many  myths about derivative  strategies. Most of the popular derivative strategies have less than 50% probability of making profit. Their risks/ return characteristics are often less than one. Many of them result in unlimited losses under exceptional circumstances. In the modern world appearance of Black swans is frequently observed. This is due to the globalisation of the world financial markets. In an individual’s life exceptional circumstances appear in every body’s life once or twice. More often these exceptional will ruin the person permanently.Therefore neglect in taking these exceptional risks into account when trading is like inviting disasters.

  • However there are exceptional strategies that provide reasonable returns with very limited risks. These strategies provide ways and means to reduce risks as well. This is a book about such strategies too. However success is always equal to the sum of expertise and luck.

Author: Cyriac Kandathil

Get in touch: syriacster@gmail.com ; Phone: 001 481 2392630

Derivatives- The Boogeyman’s stick

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Derivatives- The Boogeyman's stick

Derivatives- The Boogeyman’s stick

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Blaming derivatives for human failures is quite unfair. Those who used derivatives to reduce their risks have never lost. But those who bought risks out of sheer greed have failed when unexpected developments happened.
Derivatives have their good sides and bad sides.In the hands of the misinformed they are weapons of mass destruction and Governments are forced to find ways and means to rescue them from going under due to far greater implications of their failures. These rescue efforts create moral hazards.
There are thousands of books written on derivatives showering praise on them. There are large numbers of derivative strategies that look very good and profitable on paper. Most of the books have not bothered to delve into the risks these strategies carry when put into practice. Many of them are directional strategies that make the trader take a view of the market before executing a particular strategy. It is practically impossible for an institution or an individual however informed to predict the future consistently in this global market, not to speak of the uninformed individual. That is why most of the so called wonderful strategies fail.

Author: Cyriac Kandathil

Get in touch: syriacster@gmail.com ; Phone: 001 481 2392630