Sunday 10 March 2013

Trading: From Taleb to Jeff Yass and poker


While currently reading Dynamic Hedging by Nassim Nicholas Taleb I came across a mention of Jeff Yass. Taleb says the greater fool theory is well explained by market maker Jeff Yass on his approach to  trading options:

"Somehow "value" is conditional on the most recent information rather than the overall picture. If a market operator is given a position by someone else, he receives more than a position: He gets information, and the information would necessarily eradicate the edge." (Taleb, 1997)

This of course led to do a quick google search on Jeff Yass. Unfortunately I couldn't find any youtube  videos of his interviews/speeches. I found out he was a rather private individual but luckily came in rather comprehensive article published by the Philidelphia Magazine. The article details how Yass has used the disciplines and skills from playing poker to since his college days to consistently win on the markets over the last 30 years.

I enjoyed the article and hope you do too. Although I don't consider myself a trader (or poker) player, like Rakim said, you have to respect the technique!

Link to article is here: http://www.phillymag.com/articles/beating-the-odds/

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