The Trillion Dollar Equation

The Trillion Dollar Equation Veritasium 19.8M subscribers Subscribe 337K Share Ask Save 15,530,097 views Feb 27, 2024 How the Black-Scholes/Merton equation made trillions of dollars. Go to https://www.eightsleep.com/veritasium and use the code Veritasium for $200 off your Pod Cover. Special thanks to our Patreon supporters! Join this list to help us keep our videos free, forever: https://ve42.co/PatreonDEB If you’re looking for a molecular modeling kit, try Snatoms, a kit I invented where the atoms snap together magnetically - https://ve42.co/SnatomsV ▀▀▀ A huge thank you to Prof. Andrew Lo (MIT) for speaking with us and helping with the script. We would also like to thank the following: Prof. Amanda Turner (University of Leeds) Owen Maher (Electrify Video Partners) ▀▀▀ References: The Man Who Solved the Market: How Jim Simons launched the quant revolution, Gregory Zuckerman. Penguin Publishing Group. - https://ve42.co/GZuckerman The Physics of Finance: Predicting the Unpredictable: Can Science Beat the Market? James Owen Weatherall. Short Books. - https://ve42.co/FinancePhysics The Statistical Mechanics of Financial Markets, J.Voigt. Springer. - https://ve42.co/Springer Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of political economy, 81(3), 637-654. - https://ve42.co/BlackScholes Cornell, B. (2020). Medallion fund: The ultimate counterexample?. The Journal of Portfolio Management, 46(4), 156-159. - https://ve42.co/Medallion Images & Video: Ed Thorp on The Tim Ferris Show - • Legendary Trader Edward O. Thorp on Beatin... Jim Simons on TED - • The mathematician who cracked Wall Street ... Jim Simons on Numberphile - • Jim Simons (full length interview) - Numbe... ▀▀▀ Special thanks to our Patreon supporters: Adam Foreman, Anton Ragin, Balkrishna Heroor, Bill Linder, Blake Byers, Burt Humburg, Chris Harper, Dave Kircher, David Johnston, Diffbot, Evgeny Skvortsov, Garrett Mueller, Gnare, I.H., John H. Austin, Jr. ,john kiehl, Josh Hibschman, Juan Benet, KeyWestr, Lee Redden, Marinus Kuivenhoven, Max Paladino, Meekay, meg noah, Michael Krugman, Orlando Bassotto, Paul Peijzel, Richard Sundvall, Sam Lutfi, Stephen Wilcox, Tj Steyn, TTST, Ubiquity Ventures ▀▀▀ Directed by Will Wood and Derek Muller Written by Will Wood, Emily Zhang, Petr Lebedev and Derek Muller Camera operation by Raquel Nuno Additional research by Gregor Čavlović Edited by Jack Saxon and Trenton Oliver Animated by Fabio Albertelli, Jakub Misiek, Ivy Tello, David Szakaly and Will Wood Produced by Will Wood, Han Evans and Derek Muller Thumbnail by Ren Hurley Additional video/photos supplied by Getty Images and Pond5 Music from Epidemic Sound Transcript Follow along using the transcript. Show transcript Veritasium 19.8M subscribers Videos About Patreon Facebook TikTok Twitter Instagram 10,093 Comments rongmaw lin Add a comment... @XrossBones 1 year ago When a physics channel explains F&O better than any finance channel 🙏🏻 10K Reply 75 replies @cyananamation2466 1 year ago "I can calculate the motions of heavenly bodies, but not the madness of people" this gotta be one of the hardest quotes. 20K Reply 140 replies @harbirsingh7266 1 year ago After all this time, it finally took a science channel to teach me what options actually are and how they work. 3.7K Reply 21 replies @deadduck8307 8 months ago (edited) I have a PhD in math, specializing in stochastic processes (random walks), and I also trade options regularly; I approve of this video. Well done, sir. 890 Reply 18 replies @ST-nu6ib 1 year ago Unfortunately, Prof. Jim Simons passed away today (May 10, 2024). As a graduate student in math department of Stony Brook University, I came to know this earlier. He's genius of a person. Rest in peace, rest in knowledge. I always wanted to meet him but the nature has other plans. Om Shanti. 1.8K Reply 20 replies @Novascrub 1 year ago A young economist and an old economist are walking down the street, and the young economist says, "Look! A $20 bill!". The old economist says, "Nonsense. If there were a $20 bill just laying on the ground, someone would have picked it up already." 3.4K Reply 41 replies @EkapolT 1 year ago You are better at explaining financial economics than most econ/finance channel on youtube 3.9K Reply 22 replies @neutron417 1 year ago It's so fascinating to see the dots being connected from finance to math to a physics breakthrough, science is beautiful 2.4K Reply 25 replies @Retotion 1 year ago I've never fully grasped how options worked until now, I swear other people go out of their way to make it appear more complicated than it really is. 1.6K Reply 16 replies @HmmmBlyat 1 year ago "The stock market is random"... unless you are a U.S. Politician 298 Reply 6 replies @cheato1163 3 months ago Just seeing this and seeing the GameStop situation reminds me of how some trading apps allowed selling but refused purchase of the stock and nothing ever happened about it. 35 Reply 2 replies @MeShadowM8 1 year ago Not even 5 minutes in but this is easily the best explanation of stock options I've ever seen 626 Reply 5 replies @stevezelaznik5872 1 year ago Wow! As somebody who used to work with derivatives in my job I can say this is hands down the best, most accessible explanation of the Black Scholes equation that I've ever seen. This channel makes teaching look easy. 1.9K Reply 12 replies @tapio_m6861 1 year ago (edited) Heads up: when we use the terms "American vs European" options we do not mean that only in America are there options that you can exercise whenever. Most options can be exercised before the set date (=American), even in Europe. Over-the-counter options I believe are more often European option. The terms come from the origin of where these options were initially prevalent but both styles can be found around the world. 265 Reply 2 replies @nicefloweytheoverseer7632 4 months ago 3:27 THATS THE TERRARIA SELL SOUND :O 13 Reply @DR-tx3ix 1 year ago Unless I missed it, they didn't mention LTCM (Long Term Capital Management). It was a multi-billion dollar investment firm founded in 1994 by two Nobel laureates using the Black-Scholles model -- and it went bankrupt in 1998. 685 Reply 15 replies @jaket5267 1 year ago In case Derek or anyone on his team reads this, $100 in the medallion fund does not compound yearly at 66%. It yields 66% per year. The size of the medallion fund is limited by the size of the options market. If the fund grows too large, their edge experiences diminishing returns. By this fundamental limitation of their strategy, the fund only scales with the efficacy of their edge and the rest is liquidated for employees and original shareholders. If it was truly compoundable, then the fund wouldn't be closed and an efficient market would infinitely allocate to it until itintroduced price distortions that arbitrage the edge. The initial statement about $100 becoming billions in decades is not true. 2.2K Reply 36 replies @ankur.mahajan 1 year ago (edited) I don't think that there is any other channel that brings such kind of interesting technical content in such lucid terms. 1.2K Reply 12 replies @danielchrisronan2281 2 months ago (edited) When it comes to derivatives, I always think of Alan Greenspan's quote... "You could have a doctorate in math & still not understand what you're looking at." 8 Reply @masonp5 1 year ago Professor Lo has a really good Finance course on MIT open courseware where he provides excellent dialogue on this! 269 Reply 6 replies @matthiaswuest7271 1 year ago As a pure math undergrad turned math teacher turned stats masters turned actuary... just wow. I had a smile across my face throughout as you connected the dots across the history of this topic. Fantastic as usual 1.1K Reply 9 replies @Coerciveutopian 1 year ago I love that his answer about whether this helps or not is basically "when things are good it's fine, but when things go bad it makes things much worse". Which...yeah. 703 Reply 7 replies @boptautology4691 6 hours ago the math is good in theory, but in practice, it's a closed network of gangs who ensure loopholes for getting wealthy but will exclude or remove potential threats as they see fit. Reply @ceddavis 1 year ago Worked in the OTC derivatives industry for years, and did many training classes. A great video. As an interesting personal note, I once worked with a quant group who had Fisher Black's old office, which had been turned into a "fish bowl" type group work space. It was a great partner's corner office, but no one would take it, hence being turned into a team office. He had only died recently, and no one would take it, as it would have been viewed as pretentious. Such was the esteem he was held in. 665 Reply 12 replies @satvikpatil3363 1 year ago "What did Simons get right that Newton got wrong? For one thing Simons was able to stand on the shoulders of giants." Masterpiece. 1.2K Reply 16 replies @Christopher-sl7cm 1 year ago (edited) It's worth mentioning that Merton and Scholes, who were champions of the efficient market hypothesis, were part of the board of directors of a hedge fund called Long-Term Capital, which ironically sought to exploit market inefficiencies to make money. The fund ended up collapsing less than 4 years later and receiving a huge bailout. In the years before, Ed Thorp's fund was making record profits until it was dismantled by the US gov. Source: Fortune's Formula, very interesting read 652 Reply 9 replies @tulle5586 9 months ago The card counting example, it's better for the card counter the more decks that are played. I'm nearly 40 and was deeply interested in this when I was 16. People imagine card counting as this savant type memorization. But really it's keeping track of the ratio of large cards you've seen vs small numbers. When a window of opportunity that opens favoring the player (where the majority of the cards remaining in the deck would bust the dealer when the dealer is forced to draw), the player bets more, and vice versa. With a single deck in play, this window of opportunity is short, maybe the next hand before you need to shuffle. But when playing with 6 decks, the opportunity is more rare but exploitable for much longer. 11 Reply @AaronTilt 9 months ago Great video. I watch several youtube videos on how to trade in the market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands. 890 Reply 6 replies @rakhuramai 1 year ago Pop sci often gets the heat for not really being serious math/science. Good to see Derek not shying away from showing more equations and instead making a whole video on one. 1K Reply 21 replies @bene989898 1 year ago As a mathematician, this was the best video I have seen for months! Thanks for the great work! 455 Reply 4 replies @jesusdavidleitontrejos4289 8 months ago 30:50 “If we are ever able to discover all the patterns in the stock market, knowing what they are will allow us to eliminate them. Then we will finally have a perfectly efficient market where all price movements are truly random”. 8 Reply @wargreymon2024 1 year ago props to Andrew Lo, explain it very very clearly. 450 Reply 8 replies @gustavl3107 1 year ago I wrote my master thesis on stock option pricing, and then went on to do a PhD in applied math, using the same equations and ideas but this time applied to complex biological systems. Thank you for the brilliant introduction to my favorite topic! 175 Reply 13 replies @AlejandroMartinez-vk7ys 1 year ago (edited) This channel deserves some sort of a an award or recognition on YouTube for being so informative and engaging. The amount of detail is astounding. YouTube should start rewarding this level of professionalism and dedication. 605 Reply 8 replies @TheSpudinator716 3 days ago Surprised there's no mention of Benoit Mendelbrot and The Variation of Certain Speculative Prices which influenced Nassim Talib, arguably one of the more influential traders of the era. Reply @DylanSargesson 1 year ago The South Sea Bubble (the Newton stocks mentioned near the beginning of the video) is a really interesting story itself. The channel Extra History has a great series on it. 185 Reply 5 replies @TimeBucks 1 year ago I love the animations. 263 Reply 2 replies @relientker 1 year ago as someone who has taken soft interest in this stuff, but never taken any business classes, or messed with actual trading... you filled in so many gaps of knowledge for me with this one. thankyou veritasium! 946 Reply 9 replies @saisaigraph1631 3 days ago wow wow wow so nicely explained TYSM Reply @tciddados 1 year ago "It's stable during good times and unstable during bad times" seems like the exact opposite of what people need. Bad times are when you need stability, when things are going well, risk is less of an issue. 696 Reply 21 replies @yuckysamson 20 hours ago Great lost in translation reference. Clearly a bigger cineast than a mathematician. Reply @Goforth.And.Conquer 1 year ago As someone with a post-grad finance degree, gotta say, this is one of the best videos on derivatives I've seen. Great work. Love this! 186 Reply @patrickjohnson6916 1 year ago I’m an actuary currently preparing for an Asset&Liability modeling exam. This is way more entertaining than any of my other study material! 257 Reply 4 replies @codnx 1 year ago 13:00 mango mango 5 Reply @blazejecar 1 year ago you have such a gift to explain these things. Your video on Fourier transformation helped me immensely in my PhD dissertation actually (i still had to find "legit" sources cause a veritasium video doesn't count, but I understood it better from you than from any "proper" papers). Please never stop making these, you explain complicated things so well 234 Reply 5 replies @hernanalzate1582 1 year ago (edited) Great vid, just missing the contribution of Prof. Paul Samuelson when he visited the Univ of Paris and found out Bachelier's PhD thesis full of dust and lost inside the Library, by then....Fisher Black and Myron Scholes were struggling to find a solution to their SDE, so Samuelson helped them a lot by presenting Bachelier's approach. In addition, Itô's calculus was also used by Prof. Robert Merton to make his contribution mathematically elegant and robust. 357 Reply @diablow1411 1 year ago This brings me nostalgia! Back in the undergrad days, I had briefly studied the Black-Scholes equation, but didn't really focus much on it because of its complexity. Almost 4 years later, its nostalgic to see it again; and maybe, learn more about it. 231 Reply 7 replies @Ali-Mhsn 1 year ago (edited) Veritaseum videos are like a Nolan movie. It goes through multiple different story lines, and finally converges into one thing that finally lets you make sense of the whole story. 1.6K Reply 42 replies @natures_guardians 1 year ago These new animations are great! Really well done Derek! 448 Reply 6 replies @unkown-l1v 1 day ago where are the numbers? 1 Reply @unnamedracer9757 1 year ago 23:35 I absolutely love that graph 😂 It’s just so nuts how vertical it goes 297 Reply 2 replies @tyronemguni3895 1 year ago I'm a Finance major, and I love your explanation of the intuition behind the Heat Equation and how it converges to a Normal distribution. Damn! This added an extra layer to why the Log Normal distribution was used in the first place. Brilliant!!!!!! I loved it!! 101 Reply 1 reply @ruthw.3571 1 year ago The way he gets surprised during his talk with the MIT professor just reminds me of the movie "Big Short" 270 Reply 3 replies @riteshb27 3 weeks ago I'm a CS engineer who's doing an MBA in finance. I first saw this video a day after it came out and became interested in Derivatives and modelling. Just landed a job in QRM at a pretty large bank. Thanks Derek and Veritasium for pointing me in the right direction. This was hugely helpful. 1 Reply @medsson5173 1 year ago 1:40 business was booming 💀 64 Reply 2 replies @Zagor9 1 year ago In my opinion, 'Veritasium' is one of the best YouTube channels out there on so many levels. The amount of thought and detail poured into each video is genuinely remarkable. The content is informative, engaging, and relatively easy to follow and understand. I’d love to hear what others think! 45 Reply @djjdjd470 1 year ago I have my vector algebra and calculus test tomorrow but this is more important 35 Reply 1 reply @meteoriter1647 9 months ago Ve: at 0:48 I checked the average rate of return per year and according to my math, I'm getting 83.71% rate of return per year, $100 in 30 years would become $8.4 billion at that rate and not 66%. Maybe you have inflation or something else built into the formula you are using? Anyway, that's elementary compared to the math of solving the trillion dollar differential equation of which you mention, which would be awesome incidentally to know how to solve! This video has got to be one of the 10 best contents on the internet. Thanks. 4 Reply @dannyboi0809 1 year ago Can't help but notice Thorpe dissing Fischer Black and Myron Scholes throughout his interview for publishing their equation 😂 223 Reply 8 replies @davidsommer8318 1 year ago Prof. Andrew Lo puts on a clinic in explaining something in a way that is strictly correct yet broadly accessible. 137 Reply 2 replies @lavrentiygromov2394 2 months ago you just turned a lesson into a hype session 2 Reply @AlessioRusso-p3j 1 year ago Whenever I take a pause from youtube for few months, the only thing I miss about youtube, is videos by this guy. Thanks Derek!!!! 99 Reply @outlookoff9884 4 days ago Brilliant work. Amazing video. Great effort. Great job of posting this video ! Reply @MrQuantumInc 1 year ago Believing the efficient market hypothesis is like when a physics question that asks you to ignore friction. There are a number of assumptions that are obviously not true, but still lead basic economy theory to make important predictions. Just as you cannot know the coefficient of friction without physically testing the specific material, there are a lot of things you cannot know about a market without deep research into the specific traders, insider trading, or some really advanced models combined with a lot of data on the market. 131 Reply 7 replies @davidniemi6553 1 year ago One of the most excellent explanations of a complex subject I have ever seen. Keep doing what you are doing! 124 Reply @Austin-His_Lordship 1 year ago 11:01 This Fourier guy always finds a way to be in a Veritasium video😂😂😂 78 Reply 2 replies @tonybobay6276 1 year ago I have a finance degree, and this 30 min video explained this all far better than any class I've ever taken. Bravo to you for succinctly explaining an incredibly difficult concept to grasp in such a short format. Also, those comments by Professor Lo towards the end are eerily similar to that dinner scene in The Big Short with that synthetic derivatives manager. Gave me the chills. Only this time, instead of derivatives on the residential mortgage market, it's the commercial mortgage market as well as municipal bond market. Both of those are in tremendous upheaval and market distress and will be for the next few years. Any derivatives riding on those underlying financial instruments are toast. 98 Reply 17 replies @lukejohnston99 1 year ago Trillion dollar industries which make and break billionaires... all devoted to shuffling around money from one place to another. Economics are crazy. As an engineer, I find the idea of entire industries bearing no tangible, material result very interesting. 240 Reply 19 replies @Robert_Musil 1 year ago That was a very solid episode. Hope you'll do more non-physics stuff in the same way. 30 Reply @prosocial_lad 1 year ago One of the better ones you guys have made in terms of narrative and interdisciplinary synthesis 202 Reply 4 replies @manuelofosu 1 year ago 1:00 Just heard about Jim Simons' passing today (10th May 2024). I recalled watching his contribution to hedge funding from this channel about two months ago. I came here to appreciate his contribution once more. RIP Legend! 179 Reply 1 reply @WayneAustin-f3u 1 year ago Talk about the rise and fall of Long Trem Capital Managment 2 Reply @namlehai2737 1 year ago Inspired by this, I went on to study this topic in MIT's online course 18.S096. Turns out the math background is intense and it must have been really hard to fully explain it 3b1b style. Along the way I realized quant math is so similar to what I learn in a ml ai cursus, pretty cool! 15 Reply @Tami-Mcclain 1 year ago I love all veritasium videos, but for whatever reason, this one blew my mind. Man... The history, how things came together, the people and guests, the brain power... It's just crazy. Even the conclusion made me shake my head completely impressed and equally mind blown lol 83 Reply @badassnewbie 1 year ago OK the galton board is absolutely the coolest thing I've seen all week. 184 Reply 6 replies @matheuscosta4397 4 weeks ago This can help explain that A.I. won't have conscience because it can't be afraid unless someone develops a mechanism. Then, it will be a living being, if not already Reply @PeteAndrijeski 1 year ago This is just masterful in its simplicity and efficiency of explanation. I'm definitely saving this link. I learned from it and I'll be sharing it with others. 41 Reply @johnmcho 1 year ago This is the best video on options I've ever seen. It's basically an MBA class without the homework. 292 Reply 6 replies @rajesh_404 1 year ago I'm literally studying Black Scholes equation in my MSc finance now and you've posted this 126 Reply 14 replies @saisaigraph1631 3 days ago excelent video so simply and beautifully explained Thank you so much Reply @EikeTrauernicht 1 year ago I'm continuously blown away more with every video by the production value and quality veritasium has reached. It is insane to think that this is youtube now... i mean, writing, editing, animations, plot/subplot, interviews, the "red line" through the whole video... yep... blown away 570 Reply 2 replies @bear532 1 year ago Genuinely one of, if not, my favorite channels for years now. Thank you for the quality educational videos! 67 Reply @alejmc 1 year ago Around the 10:00 mark, that peg board is when I realized that I wasn’t subscribed and should have totally be 10 videos ago. What an episode, truly mind blown… love me some distribution functions and probabilities. 169 Reply 2 replies @BrianOxleyTexan 1 month ago Amazing to see the sponsor ad! I was just reading this morning how the AWS outage this week messed up smart beds like this as their controls relied on backend servers at Amazon. 1 Reply @DanHartwigMusic 1 year ago Love the illustrations of the "radiation of probabilities" (and everything else) 👏👏 32 Reply @Pirake123 1 year ago The sad thing is though Rennaisance and other big trading firms co-locate their datacenters right next to the exchange (and I have heard they get direct fibreoptic connections). This means that they get the price signal before anyone else and can simply make money from small high-frequency trades that don't require sophisticated models (a very unfair advantage). 54 Reply 7 replies @WaterTheMcee 1 year ago This is such a beautifully intricate breakdown of the Black Scholes model and Derivative pricing. I have an exam in a few weeks that includes 6 chapters on the mathematics and economics of derivatives so thank you for this video. Talk about right on time! 26 Reply @Mikehibbett 3 months ago There was so much wonderful work performed in the last 300 years. Reply @AriCagan 1 year ago (edited) One of the best descriptions of options I’ve ever heard, the olive press is so easy to understand 58 Reply @yp5387 1 year ago 8:03 Tug of war reference is on point. I wonder why nobody explained this way before. I have a huge respect for your skill to simplify hard topics. 137 Reply 3 replies @Vetcho-v4f 1 year ago Welcome to the stochastic calculus and Quantitative finance world...great video 10 Reply @krombopulost4699 1 month ago Thank you AMD for a wonderful year. thanks for the 10k Reply @NightFoxXIII 1 year ago Now I truly have a better understanding on calls and options. This was explained so beautifully from both you and Professor Lo where there was both the technical side but still kept it easy to digest such a complex topic. Kudos again to you and the team. What a hella fascinating topic 109 Reply 4 replies @matheuspavan2336 1 year ago There should be an award for masterpieces on youtube and it should be called "veritassium award", becausa you dont deserve this award, you are this award. Best teaching channel on the planet 52 Reply @LouisHansell 1 year ago The best book on this topic is "Inventing Money" by Nicholas Dunbar. It chronicles the trajectory of Merton-Scholes in real life, and details all the characters on the stage when the markets blew up in 1998-99. It reads almost like a thriller, except this really happened and, behind big closed doors in lower Manhattan, the world's financial markets were on the brink. Great video, Veritasium! 48 Reply @nicholasoberling6653 9 days ago If I get it right, it’s like betting on which slug goes up the wall faster. The slugs don’t benefit. Reply @ciroguerra-lara6747 1 year ago It would be itnteresting to see a video on the LTCM collapse, as a coounter example: LTCM was directed my Merton and Scholes and John Meriwether, the same creators of the Blach Scholes model and a seasoned finance executive. Still it crashed even with it' s sofisticated models. 8 Reply @betterchapter 1 year ago I could listen to this guy talk all day. 121 Reply 4 replies @hesseldekraai 1 year ago I am not sure how happy I am that my physics collegues have been making these shady financial instruments that lead to such wonderful things as the 2008 stock market crash 9 Reply @Hespus 4 months ago I would love it if you actually did a analysis on how the fact that everybody that uses these algorithms inflates the prices exponentially Reply @kshitijthakkar8074 1 year ago Hey Derek, You have blown up my mind, and it's in space right now. Never even imagined that I'd get to see Black - Scholes in your videos, not even in my wildest of dreams, but here you are doing. Kudos man. Hat's off. You're the best. Keep going. 21 Reply @JamesRobilliard 1 year ago Everyone should watch this. I’ve often said everything comes from physics and this shows how heat diffusion and Brownian motion allows a trillion dollar options market. This is the best explanation of options I have seen! Hands down, the best. 123 Reply 33 replies @MorganGillespie-mk6xw 1 year ago Please please please please do more financial videos like this!!!!! I don’t even care what the topic is, just do more breakdowns like this! Love it! Great job!!! ️ 33 Reply @marshelgleason2419 3 months ago I’m so happy I found this channel Reply @chrissabal7937 1 year ago My favorite part of Veritasium videos is the casual nature in which significant names in science/maths history are dropped. Like, they're just like "This guy that you've provably never heard of was a graduate student of an absurdly famous physicist that has equations or instruments or procedures named after them." It's peak comedy, honestly. Also, BRADY! I heard his voice lol 14 Reply @virxxszm 1 year ago (edited) As a BSc graduate in Quant Finance 10 years ago, I clicked into this video milliseconds after the silhouette of the shape of this equation entered this corner of my eye. We used to derive (or recite the derivation of) this whole equation in the final exam. Great video and interview. 400 Reply 16 replies @UsamaThakurr 1 year ago Derek must be living in my head for always delivering topics that I want to know. 82 Reply @arvindrajan4751 3 weeks ago Outstanding explanation of Black Scholes. My quibble is that you overemphasize the success of Renaissance, while ignoring the dozens of failures of other quant funds, especially the spectacular blow-ups of LTCM, Platinum Grove, JWM, etc. THis could give a lopsided picture to young quants wanting to beat the market. Reply @stefanperko 1 year ago Finally! Thank you for educating people about stochastic calculus. I feel seen :) Btw. stochastic calculus is nowadays used for more many things non-financial (natural sciences including climate modelling, machine learning, etc.) As a side remark: a process satisfying the equation at 21:05 (the price of a risky asset) is called geometric Brownian motion. 94 Reply 2 replies @aFish315 1 year ago (edited) Need Part-2: these ideas (Gaussian assumption, random walk, derivatives, credit default swaps, mortgage backed securities) directly led to the greatest financial catastrophe ever recorded, the 2007-2008 Crash. For a less « naive » view, see Mandelbrot: both nature and financial markets are better described/modeled by mathematical « roughness »: fractals, non-Gaussian distributions, with fat tails where the likelihood of large disruptive events (avalanche) is much greater than what the random-walk, Gaussian distribution assumes 13 Reply 1 reply @hanswurst7325 1 year ago Easily one of the best videos I have ever seen. The simple brilliance in covering the topic in its entire complexity is fascinating itself. Combining it with visual represantations of the hard to grasp statistical phenomena makes it even better. Loved every minute and made me wish my Derivatives professors would have had the same passion for the topic. Bravo, coming from an MSc in Finance! 534 Reply 5 replies @BlairStOnge 2 months ago 23:46 “a small cadre of users” lmfao that small cadre bought tens of millions of shares. It was a huge group of people. 2 Reply @darkhippo6222 1 year ago (edited) So this is why so many former Physicists work at SAP. In Germany we say "SAP - 'Sammelstelle arbeitsloser Physiker'" which means 'SAP - Collection of Jobless Physicists'" 72 Reply 5 replies @gurixd100 1 year ago That bit of history about Newton always disappoints me to such a degree. 6 Reply @bobbytaraantino 1 year ago 1:32 no way, this is wild. 8 Reply @AdeniyiAdebowale-yi9fc 4 months ago Thank you for making this free for us ❤ Reply @stevenrutherford3649 1 year ago In the early 2000's I worked on "Real Options Analysis" where we were trying to apply the BSM equation to the evaluation of real assets such as oil and gas prospects. As I was reading and studying the BSM theory I came across some interesting anecdotes about how the BSM differential equation was solved. Apparently they were having trouble finding solutions to the PDE. Apparently Fischer Black, who had a PhD in physics, recognized the equation as a parabolic, diffusion equation much like Schrodinger's equation. With a change of variables he was able to write down the solutions in closed form. 22 Reply 1 reply @dudeonbike800 1 year ago Man, your style of presentation and handling of complex subjects is truly impressive! Thank you for yet another amazing video. 164 Reply 2 replies @hemmel777 1 year ago Obviously none of them heard of Nanci Pelosi 62 Reply 1 reply @РодионШалаботов 3 weeks ago seven trades seven wins insane streak perfect execution through every setup Reply @JasonYates-v9f 1 year ago I love the animations. I appreciate all the hard work but into these. My brain thanks you. 12 Reply @repsaknivek 1 year ago Derek, I am so impressed with the quality of teaching and communication of this video. You have every right to be very proud. I’m 64, consume huge amounts of information daily and am rarely impressively struck by the lucidity and insights and especially with the order they are presented. It’s as if you could read my mind. Each time as I began wondering something, you presented that exact thing - as a question or factoid. Friggin’ marvelous. 24 Reply 1 reply @christopher8220 1 year ago Very excellent vid. At first glance I thought it was the Navier-Stokes eq. Glad to find out it was the options pricing model. I also have to give you kudos for having the Prof on as I have watched several of his MIT lectures on Finance via the MIT Open Courseware channel. 15 Reply @papageno88 8 months ago You forgot the mention that the South Sea Company didn't just organically fail; its management was committing mass securities fraud and the company never had any prospects of being profitable. 2 Reply @castlehedge 1 year ago (edited) Slight correction @ 19:57 Yes, Bob Merton did publish a monograph illustrating the Black-Scholes "Differential" Equation. However, it was NOT his own version and it was NOT discovered independently by Bob. He worked very closely with both Myron and Fisher who already had a "Model" of how to price a European call option. However, the main issue was they were both struggling with finding the terminal value of an option. Story time... In the early 1970s, Myron's masters students initially used the CAPM model to discount the terminal value of an option to try find its true present value, but the discount rate kept on changing. Side note, yes, Black-Scholes is just simply a DCF model (Discounted Cash Flow). Myron later realized thru his discussions with Fisher to use the risk-free rate to discount the terminal value of an option to find its true value. So really, you can say Fisher was kind of the mastermind behind the Black-Scholes "Model". I say Model because this was prior to Bob Merton's work on the "Differential" Equation which you are talking about in your video. The Black-Scholes Model and the Differential Equation are one and the same with the only difference that the Model is represented with the stock price, strike price, volatility, date of expiration, and the risk-free rate as fixed variables. The Differential Equation is represented thru abstract mathematical symbols to reflect the changes in those same variables like the change in the option price relative to the change in stock price as well as the change in time, and the change in the change of the stock price relative to the option price, "etc., etc.". I say "etc." because this can go on forever i.e. measuring the changes of the change of change between the stock price, time, volatility which in the real world of trading we call...delta, gamma, vega, theta, vomma, charm, rho, vanna, speed, veta, zomma, color, etc. The output of these mathematical symbols with silly names actually do spit out real numbers which do have real value particularly to option market makers that use them every day. Note, your options portfolio has to be in the hundreds of millions of dollars for you to really care about those numbers but I digress. Back to the story...Fisher and Myron realized that in order to price an option you actually have to think about creating a real life portfolio and pricing the option based on that portfolio (which we call a zero-beta portfolio). The alternative is using mathematics alone to price the value of an option which many people foolishly try to do even today. The real life portfolio was a hedge which eliminated systematic risk (market risk). However, the hedge was not a zero-value hedge, you have to put up money to establish it - like in real life - and the return on that hedge has to be the risk-free rate of return which is the closed-form solution i.e. a real fixed number. It was actually Fisher thru his discussions with Jack Treynor who initially came up with the concept of a differential equation to explain the dynamics i.e. the changes between the real life portfolio (stock price against the call option), the value of the option, and the other variables I previously mentioned. But since, an option has a term life to it - the boundary condition is discontinuous, and it is extremely difficult to integrate or find a closed-form solution to a discontinuous boundary condition; unless, the solution is like an average or a constantly moving number like the numbers found by Myron's masters students initially using the CAPM to discount the terminal value of an option. In that case, the solution is not a closed-form or analytical solution but what we call a numerical or classical solution. Nevertheless, it was only after Myron read some old papers by James Boness which had an expected terminal value of an option that Myron told Fisher, "why don't we try putting in the riskless rate, because its already in our differential equation, differentiate that which is the closed form solution and then let's see what we get." So, they differentiated it and put in the differential equation and voila! It solved it! So that's when they realized for the first time what the implications of the risk-free rate was which essentially assumed the underlying asset had to have an expected return equal to the risk-free rate so that they could discount it using the risk-free rate. So, Myron and Fisher were able to take Boness' equations, differentiate it - using the risk-free rate - and get back the original differential equation they already had which made them realize they had the solution. It was only later that Bob Merton wrote out the differential equation in its entirety using technology like ito calculus which arbitrarily represents the randomness in stock prices to satisfy the stochastic definition of Brownian motion using real life numbers e.g. dividing by 2 and squaring the result. The result in this case is volatility or what we call implied volatility because it is the only unknown variable in the Model which is solved algebraically using - BELIEVE IT OR NOT - the real life price of the option! I think it was Riccardo Rebonato who famously said, "implied volatility is the wrong number to put in the wrong formula to get the right price." Also, Bob used the lognormal distribution function to explain the possible outcomes of the stock price relative to the strike price during the life of the option because lognormal functions cannot input negative values in its argument. In other words, stock prices can't go negative. Who knew...lol! Normal distributions are usually used to describe stock returns which can go negative. Just ask Kathy Woods lol! Finally, the drift you are referring to in the video is represented as the risk-free rate which is the closed-form solution to the differential equation. Bob quintessentially represented it with undying mathematical precision with the letter "r" in both the model and the differential equation. 15 Reply 2 replies @JuliusSeizure 1 year ago (edited) I highly recommend the books "Physics of Wall Street," "Fortune's Formula," and "The Man Who Solved the Market" for more on the pioneers and history of quant finance. Really interesting reads that touch on a lot of the anecdotes in this video, and more. 5 Reply @MR_FINANCE_Team 1 month ago The insane part isn’t that a single equation could reshape modern finance. It’s that trillions of dollars move every day based on assumptions hidden inside the math — assumptions most people never question. The equation didn’t just price risk. It changed what the world defines as risk. Reply @shenqiangshou 1 year ago From Douglas Adams in THHGTTG: There is a theory which states that if ever anyone discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable. There is another theory which states that this has already happened. 6 Reply @22yhjjjj 1 year ago (edited) As someone who studied Mathematics as an undergraduate, I've gained the ability to predict how a math / physics Veritasium video goes based on thumbnail and title alone. This one, was one of my favorites. 4 Reply @yoface2537 1 year ago I thought I'd never want to see another partial derivative again after several physics graduate couldn't explain it but you know what, I'll give them another chance 6 Reply @KrYpTKaRnage 3 days ago That ending. Oml Reply @someotherbeing 1 year ago i like how this channel is gered towards applied sciences and impacts of science, really helps us develop an interest in things. I am finding these as enjoyable as In a Nutshell videos. 24 Reply 1 reply @seanrodgers1839 1 year ago I studied business finance in the late 80s. There was some talk of some of this that could have been known then, ut it wasn't part of the curriculum. Fascinating to hear this and what came next. 10 Reply @Lalenbuklaw-k9c 3 weeks ago ton analyse sur le USD était parfaite Reply @protoaltus 1 year ago Every video, I learn more against my will still contributing to my appreciation of systems, chaos and all in between. Such a great channel and even greater dedication. 17 Reply @JackBlackNinja 1 year ago Crazy good. Easily could have been 1h given how concise and interesting everything was without really ever taking much of an aside to go into any of the details for long before going on to the next point. The pacing was incredible. Rarefied as hell! Would love to see a 2h version 13 Reply @aryotaheri7421 6 months ago (edited) The fact that Newton, possibly the greatest mind to have walked planet Eart, unironically bought high and sold low is one of the funniest things I've ever heard. 2 Reply @skyecinnie 2 months ago I'd love an in-depth video on string theory Reply @hansangb 1 year ago One of the best explanations of the market. Well done. The push pull animation of buyers and sellers was spectacular 8 Reply @pranjalchaubey 1 year ago Easily the best video on Quant Finance on YouTube. Nothing comes close! Oscar worthy!! 84 Reply @parithiilamaaran.h9829 1 year ago (edited) So excited lol. Derek, you are the best. I loved the video that you posted about blue light. And you are back with another banger. 90 Reply 3 replies @pg̈ 2 months ago Good thing I paid attention to Mr. Kruger's classes. Reply @nevergonnagiveyouup1070 1 year ago 2:30 OH man, how the tables turn! Loved the pun! 33 Reply 2 replies @matthewkendall5235 1 year ago Every single video you make - is stunningly well executed and compelling - really impressed again! 16 Reply @deepdesertg 1 year ago This is the first veritasium video i have ever watched where i (finishing my MSc in finance right now) knew all the information already, but the acurracy, amazing interview partners and presentation make me appreciate this channel even more, now that i had some kind of baseline expectations before watching the video, which where all very much exceeded! All the best from germany! 113 Reply 5 replies @pritamprmnkyt 11 months ago (edited) This reminds me so much of your entropy video. It's the process of going from "Not really random" to "Truly random" where all the game happens. Reply @noblesleem 1 year ago (edited) Thank you for your summary 0:13 9 Reply @ivanleon6164 1 year ago never saw someone explain more clear this as Dr. Andrew Lo, brilliant. 29 Reply 2 replies @BaronVonDergner 1 year ago (edited) Only Veritasium can make a single video which links Newton every step-by-step to the stock market price of a Reddit meme and keep me fascinated for the full half hour 22 Reply @kevinpham9006 2 months ago that was such an elegant way of explaining and option Reply @BrendaCooke-s3f 1 year ago Thank you for a lovely video. Not only have you explained a complex topic easily but also made it enjoyable. 17 Reply @msciwoj-1 1 year ago I was curious whether you could buy options on options on options (...) on options on regular stock options, and found out that yes, they are called sequential compound options. The complexity of these is insane. So I guess the search for optimal option pricing formulas will go on forever. 5 Reply @sarthaktewari1192 1 year ago It is one thing to throw random mumbo jumbo words in a video but to explain it at such great length you are simply brilliant. great video as always 16 Reply @vicetwice 2 months ago The quality of this video is insane and Prof Andrew explanations are amazing Reply @Definity1 1 year ago Just out of curiosity, why is the oil radioactive at 23:09? 6 Reply @nolancroushore4087 1 year ago I think another great analogy of how options can be used as leverage can be seen when you buy a stock's value in options (lets say a call option). If a stock is valued at $100 and an option contract premium is $5, you can buy 20 option contracts worth rather than buying one share of stock. If the stock price increases by $10 by the expiration date, had you bought the stock you would only be up $10, however had you bought the 20 contracts, you would be up $100 (taking into account the premium you paid), essentially doubling your investment when you otherwise would have seen a 10% gain. 13 Reply 4 replies @gtgaxiola 1 year ago Why is reddit getting all the heat at 23:43 what about the collusion of Melvin Capital, RobinHood, Point72 and Citadel? How about them igniting the price change of $GME? 5 Reply @ricksmith7232 3 months ago Such a well done video, so much info! Great job! 1 Reply @gamma.xplus1 1 year ago 1:11 how just how 5 Reply @karathompson867 1 year ago Physics has never made sense to me, and I’ve avoided it as much as possible. Derek is managing to completely change that! Your clear passion and the impressive production of your videos continually captivates me and I find myself learning! Hats off to you and your team 19 Reply @mohsinashfaq101 1 year ago Multiplying both sides with 0 and BAAAMMMM. 180 Reply 7 replies @marcosdenizatrailhiker2037 3 weeks ago I think we are missing market chaos. The number of variables can be considerable would have to be tracked. Reply @michaeligwe6406 1 year ago This video brought tears to my eyes. I've recently been struggling to understand the science of finance and economy and stock prices and all that, and to see it, or at least an important part of it, explained in such fundamental terms, compared to the spread of heat, is truly amazing and awe-inspiring. From the bottom of my science-loving heart, thank you for all that you do❤ 24 Reply @Max_Jacoby 1 year ago Newton investing in slave transporting company is something I didn't expect to learn today. 21 Reply @xmatterdaily 1 year ago Wow wow wow Veritasium is the best YouTube channel ever. I used to look behind these option prices and how they are calculated. This video is absolutely amazing. More of these please. 20 Reply @Genaro-z7k 1 month ago midline consolidation pause was smart wait Reply @fatcatpatdat 1 year ago I love the perspectives across time you get from Veritasium videos. By showing you how it has been, you better understand how it is and perhaps even how it will be. 7 Reply @calculuskid5768 1 year ago He’s done it with this one. GOAT of YouTube science videos 19 Reply @alexkindawhite 1 year ago 11:52 me on the toilet 7 Reply @ICT-BACKUP 2 months ago Trillion-dollar industries that make and break billionaires all built around the simple act of moving money from one place to another. The scale of it is mind-blowing. it fascinates me how entire systems of wealth and power can exist without producing anything tangible, yet influence every aspect of our material world. Economics is a strange kind of genius invisible, yet it shapes everything we see. 1 Reply @pasqualex2 1 year ago (edited) @Veritasium Great video and explanation of Black-Scholes / Merton, but I'm severely disappointed that you didn't bring up the story of the hedge fund "Long Term Capital Management". This is an example similar to Renaissance / Medallion, but an instance where it goes terribly wrong. I find it especially disappointing that LTCM isn't discussed in this video because Scholes and Merton were both founding partners and on the board of LTCM when it failed terribly in 1998. When LTCM failed, it was a serious threat to the entire financial system and required a bail-out of $3.6 billion. Your video ends on a note which suggests that with strong enough math, data, and computational power - you can beat the market. The story of LTCM says otherwise. I really think an addendum to this video is merited... 183 Reply 14 replies @OFB94 1 year ago Well, that taught me more in 30 minutes than my entire course "option pricing" at my university, made it way more fun and more understandable. It is crazy we get stuff like that for free on the internet. Thank you so much for that. 64 Reply 6 replies @chockumail 1 year ago (edited) Veritasium never fails to amaze me! Clarity in explaining the concept for layman terms. My inspiration to learn financial engineering. History and context matters equally relative to the invention itself. 8 Reply @bwall459 2 months ago The content of this video is great. Dont quite understand how ppl think the options description was so groundbreaking tho Reply @kortyEdna825 1 year ago Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies. 357 Reply 6 replies @RSLT 1 year ago Look forward to seeing a Riemann Hypothesis video by you. I believe it will be fantastic. Your insights on such a profound and challenging topic would be incredibly valuable. I've always admired your ability to explain complex mathematical concepts clearly and engagingly. A video on the Riemann Hypothesis would be an excellent addition to your content, and I'm sure many others would benefit from and enjoy it as well. Please do it! 4 Reply @unknown01q2 1 year ago Next video Navier- Stokes equation! 27 Reply 1 reply @ZeroFivePhotography-hb3mc 3 months ago Right now, there are people all over the world who are just like you. They're either lonely, they're missing somebody, they're depressed, they're hurt, they're scarred from the past, they're having personal issues no one knows about, they have secrets you wouldn't believe. They wish, they dream and they hope. And right now, they are sitting here reading these words, and I'm writing this for you so you don’t feel alone anymore. What really helped me start overcoming the pain and actually move toward my goals was reading Manifest the Unseen by Luna Rivers, it opened my eyes in ways I didn’t expect. Always remember, don’t be depressed about the past, don’t worry about the future, and just focus on today. ❤ Reply @KartikeyaJain 1 year ago As someone who started tradin options just 2 weeks ago, this video was the best thing I have seen this whole year! 20 Reply 3 replies @calhountubbs4031 1 year ago Videos like this is exactly why this channel is one of the best all time. 7 Reply 1 reply @ham-cubes972 1 year ago 9:15 why does he looked stoned in this exchange lmaoo 9 Reply 1 reply @sopek1427 3 months ago This needs a better title… its the best explanation for accounting and finance derivatives esp the options Reply @pyritenightmare 1 year ago The South Sea Company was not "shipping enslaved Africans across the Atlantic" - at least not more than a few ship's worth (they were only allowed 1 ship per year iirc). The entire company was a scheme to create a high stock price, and pretty much didn't do anything but manipulate stocks. I suppose it wasn't included for brevity because the whole situation was a farce and this was supposed to be an interesting throughline, but still. 21 Reply 2 replies @tomiekk6255 1 year ago 26:06 - if during normal times it makes market more stable, and during turbulent times, it exacerbates the market "dislocations" - if you ask me - he just described it as in general it makes market less stable, not "all three" ("more stable, less stable and no change") 62 Reply 6 replies @빙하_Glacier 1 year ago Congratz on 15 mil! This video is wonderful. So much interesting and valuable explanation. Now time to dig more math behind it :) 6 Reply @ВикторияХитрова-д3ъ 5 months ago While everyone argues over politics and news, The Obscured Principles book by Dorian Caine quietly explains how the real game is played. The moment I read it, everything around me looked different. It’s like it gave me the decoder ring for reality. Reply @rohanjitpandey842 1 year ago 8:27 WHY U MAKE WIRED FACES IN VIDEO CALLS ??? 5 Reply @scottish_folds_are_evil 1 year ago they always say investors get money because they take on the risks.. yet they always reduce risk as much as possible, and never risk so much that it would actually affect their lifestyle. being poor is the biggest risk you can take. 74 Reply 4 replies @ashutoshsureka7651 1 year ago You should be highly appreciated brother! Such an amazing delivery of complex financial topics and linking them with history! 4 Reply @rkalle66 1 month ago Rumours are that Black and Scholes were first not able to solve the differential equation they found. But meeting a physicist friend he told them that this equation is like the Brownian motion and allready solved. Sadly Fischer Black passed away in 1995 before getting awarded with Nobel prize together with Myran Scholes and Robert Merton. The model is important even outside option pricing. For example when to go on or stop a risky invesment into a plant after you started investing. Treat the investment as an option on future returns. Reply @livethefuture2492 1 year ago (edited) Unironically a great lesson in financial investment... The application of math and physics are indeed core to functioning of the modern world, and it is the understanding of those principles that can allow us to take advantage of those principles in every day life. 4 Reply @PriyaS-ew8kb 1 year ago The fact that nobody talks about the book whispers of manifestation on borlest speaks volumes about how people are stuck in a trance 1K Reply 6 replies @SomeNerd-hn2is 1 year ago 16:02 is when the ad ends 11 Reply @keyboard_warrior_cagematch 1 month ago A funny fact is that most CEOs on Wall Street have engineering degrees and not business degrees. 1 Reply @lisam.willson1679 1 year ago When a physics channel explains F&O better than any finance channel 🙏🏻 531 Reply 11 replies @GerthaChiodini 1 year ago I’m an actuary currently preparing for an Asset&Liability modeling exam. This is way more entertaining than any of my other study material! 373 Reply 2 replies @GeraldoKilmister 1 year ago This is the best video on options I've ever seen. It's basically an MBA class without the homework. 154 Reply 1 reply @LilyLindgren 1 year ago "It's stable during good times and unstable during bad times" seems like the exact opposite of what people need. Bad times are when you need stability, when things are going well, risk is less of an issue. 239 Reply 16 replies @realtipy 1 year ago Prof. Andrew Lo puts on a clinic in explaining something in a way that is strictly correct yet broadly accessible. 12 Reply 2 replies @EmmaLewis-p7s 1 year ago Everyone should watch this. I’ve often said everything comes from physics and this shows how heat diffusion and Brownian motion allows a trillion dollar options market. This is the best explanation of options I have seen! Hands down, the best. 24 Reply @45coopaloop 1 year ago Absolutely amazing video Derek!!! This gives so much to think about and definitely I'll be watching this again to absorb more of the content, very grateful for the incredible stories you present on your channel, they make all the difference for expanding our interests and understaning of the world :) 7 Reply @milindpatel8088 1 year ago (edited) As a Financial Engineering Major, I think this video will be referenced by every professor teaching FE topics such as pricing or Stochastic Calculus before they start the syllabus, truly a marvel. I mean you glossed over the details in just the right amount, not including Geometric Brownian Motion for example was I can understand be intimidating for general mass even FE or QF students at start. Truly perfect, BRAVO! PS: I think EIGHT SLEEP will enjoy the excellent exposure off this video. 51 Reply 4 replies @wesseldenadel2695 1 year ago I work in banking (Markets Securities and derivatives) and this is by far the best video for a general audience on pricing options I have seen. Its has a few things missing such as that Andrew Lo is cut off when he start explaining that options aren't the only derivative. Because its actually futures (a different derivative) why the worldwide derivative markets are so big. Their link to resource prices is why many very large corporations use them to transfer price risk. Great job! 162 Reply 1 reply @KssfKigg 1 month ago Simple and effective explanation. Reply @GleepGlop2 1 year ago Price discovery might have once been based on supply and demand, but no longer. If the market maker doesn't want the price to go up, buy orders are routed through dark pools and don't impact the price, and vice versa. Just like the math in this video, most people have no idea. If they knew how crooked the game was it would collapse. 14 Reply @NandR 1 year ago It’s crazy how the basic idea of a stock market has come to this. Instead of actually owning stock in a company based on your belief or desire for it to succeed, you now invest your money into a fund that just tries to make money on whether or not an equation says you can. Like he said, it can make financial crises worse. And when that happens the working class suffer since the CEOs and shareholders will take care of themselves first while the rest lose their jobs and deal with inflation. 68 Reply 7 replies @SonjaBaker-lo3hf 1 year ago 6:20 - That green-screened backdrop for Professor Andrew Lo is out of scale and unimaginative. What they SHOULD do is, every time they cut back to Dr. Lo, use a different backdrop. One time it should be a photo of the moon's surface taking by a lander or a human who landed there. The next time, Dr. Lo should be wearing exactly the same clothing and with the mic clipped in exactly the same place, but he's in a gondola on the canals of Venice. (And you wouldn't need the backdrop to be static.) The third time cutting back to him, he's near a campfire in Mongolia where people are relaxing after a hard day of managing horses and camels. But he's still wearing the same clothing, and with the same mic. 9 Reply @BADAOUINOOR 1 month ago This reminds me of the Big Short movie scene where Dr Thaler explained how big the derivative market is compared to the underlying assets. Reply @acuriousmind6217 1 year ago What I learned from this is the more predictable something is, the less likely you're going to benefit from it. 19 Reply 4 replies @ChristianBarry-hm5my 1 year ago These are by far my favourite round of videos. When you go deep into the history of math. It teaches me so much and is truly fascinating. My other favourite was the one on imaginary numbers 12 Reply @AimeeChrzanowski 1 year ago 9:08 The very act of predicting actually affects the quality of the quality of the future outcomes. Heisenberg Uncertainty Principle was the first thought that came to mind. 18 Reply 2 replies @michaelmcilrath9466 2 months ago Thank you for a memorable and beautifully explained of some of the concepts and mathematical history and thinking behind the stock market. AWESOME for laymen!😍 Reply @ElectroBOOM 1 year ago (edited) I personally dislike trading, because it is pretty much gambling for normies while sophisticated advanced banks or corporations or few very smart people, or also stock brokers pocket the money, while the money comes from the poor normies that had some hope of making money but lost it in the gamble, or some big corp making a wrong bet! You really have to be an expert mathematician to figure out markets with an average to your benefit and yet some meteor hits earth, and you lose everything! I always say: invest in yourself. If your investment pays off in shape of great job or product or art, you win big. But even at the worst outcome, it was a training session you paid for. 206 Reply 16 replies @ajaychawla7 1 year ago Physics, maths are stepping stone for whole world Physicists and mathematician are underrated heros of modern world 35 Reply 32 replies @UserNameWasCensored 1 year ago (edited) 26:45 - "in 1997, Merton and Sholes were awarded the Nobel Prize in Economics". There's a big problem with this statement. There is NO NOBEL PRIZE IN ECONOMICS! Don't believe me? Look it up. It's not a Nobel Prize. The prize is awarded by the equivalent of the Swedish Treasury, not the Nobel Foundation. The Nobel heirs successfully fought to have the name of the prize changed to reflect this but most people are ignorant of this fact... and economists naturally promote the prize as a "Nobel Prize" at every opportunity. 10 Reply 1 reply @JLindsay-v8v 3 months ago Fascinating. Excellent production. More Please. Reply @JayKayDowdall 1 year ago 24:33 I love how you can see the little smirk on his face when he says "those hedge funds lost a lot of money" (referring to Gamestop and Wallstreetbets) 23 Reply 1 reply @andreyv3609 1 year ago (edited) There are a few inaccuracies, but are easy to forgive in name of the bigger picture, which is quite accurate and comprehensive. My only complaint is superficial coverage of concept of derivative, which is a central thing here, finance, and in the formula itself... Regardless, this is by far the best popularization of inner working of the modern finance. Great job! 18 Reply 3 replies @wzup23 1 year ago Wow! When I started watching, the video count was at 1.8m, now it's gone up to 1.9m at 20th min mark. Most concepts I just heard now, but the presentation quality still keeps me to finish it. Thanks dude! 9 Reply @FetsRayan9356 2 months ago This video both had me in aerial for the mathematical reasoning and equations, amd increased my disgusting for Finance, which is rooted in greedy behaviour and not the will to invest in companies you believe in. Reply @MarcusThompson-s3f 1 year ago I'm continuously blown away more with every video by the production value and quality veritasium has reached. It is insane to think that this is youtube now... i mean, writing, editing, animations, plot/subplot, interviews, the "red line" through the whole video... yep... blown away 16 Reply @CARPEDIEM-lo7xj 1 year ago One of your best pieces, i would say. But note that all your videos have good production quality and scientific insights, but a sincere curiosity and a direct practical side was missing in many. This one's right on the mark. Go ahead and inspire our young ones to be curious. 51 Reply @davidli9887 1 year ago (edited) I'm a quant finance professional working at a IB and you did a better job of explaining the heat PDE, Binomial model, and Black-Scholes SDE and how they connected togther better than my professor did over years. 12 Reply 5 replies @АртурГуньковский 1 month ago ten grand in seconds still feels unreal 1 Reply @Rinkyu 1 year ago So many bots in the comments targeting people who wanna get rich 4 Reply @4RILDIGITAL 1 year ago Absolutely mind-blowing how the concepts of randomness and probability can have such massive financial implications. The development and application of these mathematical models, and their role in shaping modern finance is a clear testament to the power of mathematics and science in deciphering patterns amidst chaos. It's remarkable how these game-changing theories extended their reach beyond academia all the way to Wall Street, instigating the rise of multi-trillion dollar industries. 300 Reply 7 replies @jazznomad 1 year ago Another fantastic episode! Excellent explanation by Dr Lo. Clear, lucid exposition of the topic and great illustrations. You never disappoint! Respect!! 19 Reply @Car_lover_shiva 3 months ago So many people praised this book Manifest the Unseen by Luna Rivers that I finally had to see for myself. No regrets whatsoever this book genuinely opened my eyes. Manifestation finally makes sense, and the changes Ive experienced are incredible. It deserves all the recommendations its getting! Reply @MagiTycho 1 year ago Derek is the only person I will gladly let confuse me with math regarding a topic I loathe (finance/econ) for a half hour. 10/10 love the animations. 5 Reply @CranappleSlam 1 year ago This is the sort of intuition that every mathematician has, that the seemingly chaotic markets can still be modeled well enough to forecast and profit from. But you did an exceptional job of looking through history to find all the brilliant minds proving that suspicion and putting it into practice. Thank you for yet another brilliant video! 13 Reply @Heinz76Harald 9 months ago wait, are you telling me Newton made a fortune by investing in slavery? 7 Reply 2 replies @kavinyudhitia 5 months ago Beautiful, love it! Thanks for sharing! Reply @reneverstraeten 1 year ago It was not Einstein who discovered the statistical theory around small particles like molecules, but it was physicists like Boltzmann and Stefan who did that before him, mostly oriented around gasses and molecular theory as gas, as a molecular particle, . Einstein used that insight to calculate the mass of one gas molecule, which was not known until this time. He used the information from the Brownian motion and parameters like the expected distance traveled by dust particles in suspension with a known chemical composition, like water, being bombarded by randomly moving molecules where the mass of the suspension molecules dictated the distance traveled by the known mass of the dust particles, as a function of the mass of molecules of the suspension. So, from this moment on the mass of the suspension molecules and from that the mass of a proton (hydrogen) could be estimated and things like the number of Avogadro became known.. That was quite important for science, as it gave information about the size and density of atoms. Einstein could easily have received the Nobel Prize for the theory, but he didn't get it for that. The discovery and calculation of the mass of the proton was quite important for all later theories in chemistry and physics. I think it was more important than his theory of relativity. But quite a lot of investigators were already busy with statistical physics around this time. Einstein was the first to have the idea to use the Brownian movement to find the mass of molecules.. He did not invent the theory around statistical movement but used it. 27 Reply 1 reply @omarahmed83 1 year ago 3:14 it's pronounced like: THAY+LEEZ of MY+LEE+TUHS. 5 Reply 1 reply @Dirtydan460 1 year ago Isaac Newton = First regard 21 Reply 2 replies 3 months ago hidden markov model, next level, is, with more patterns, mega patterns, we can dicover the parts, and such as pressure, and affects. which shows the progression, like LLM, to predict the future. Reply @PunamSharma-ei4gn 1 year ago Hey Derek!! My mom has not studied much but still likes to watch your videos, she learns a lot. Please keep translating and uploading these videos in your HINDI channel😅😊 10 Reply @Heinz76Harald 9 months ago 7:40 ...or a shitpost on twitter... 8 Reply @santiagorodriguezmateron4425 1 year ago (edited) 2:22 the fact that slavery was a deplorable business even by Newton’s time. Additionally, Good thing he lost a lot for backing genocide 4 Reply 1 reply @omarllama 8 months ago James Simons passed away in May 10th 2024. His legacy will live forever. 1 Reply @shantidutbansode2 1 year ago Whenever I take a pause from youtube for few months, the only thing I miss about youtube, is videos by this guy. Thanks Derek!!!! 6 Reply @RoryFletcherfx 1 year ago I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $950,000 PROFIT within 3months he invested $120,000. I just need creative ideas to afford my retirement. 5 Reply 8 replies @mycommentpwnz 1 year ago Long-time investor & trader here. If you want to "beat the market" you need to be FLUSH with three things: 1.) Capital/money. Sure, it's POSSIBLE to be one of those "trader success stories" who turns 5,000$ into 5 million, and retires at 30... But, what those traders don't tell you is they were products of circumstance. (Meaning, they got exceedingly fortunate with their timing, as it pertains to their market entry & asset selection.) 2.) Courage. Take something like "Cost averaging," it is one of the simplest, yet most effective, strategies you can employ. (That is what Newton was doing: He was buying more shares as prices fell, because 99% of the time, this is a very wise approach.) But, it means you have to be willing to INVEST MORE MONEY in an asset that is currently losing value. Most people invest "x" amount of money, and as soon as it's down "y" percent, they sell out of panic. 3.) Fortitude. You must go into every trade with your entries & exits (profits & losses) CLEARLY DEFINED, and then you must STICK TO THAT. If you start making decisions based on emotions, just stop trading, because you're going to lose money. 5 Reply @chrisricks6736 4 months ago the bell graph on vertical was transformative in my understanding of the stock price. Thank you! Reply @wunba 1 year ago Genuinely the best explanation of options that I’ve ever heard great job! 7 Reply 1 reply @seijodo6508 1 year ago 10:15 It's 128 5 Reply 1 reply @Chemson1989 1 year ago Imagine in the future an expert like them who works in the field of finance and build an simulation to predict the decisions of all people on Earth, at the same time it proof this world is in a simulation. 8 Reply @Forkingknightmare 9 months ago The more the people try to predict, the more unpredictable it becomes... Like a relative Heisenberg's uncertainty Reply @FredericaIsaacs 1 year ago Watched this on Friday and I practiced getting comfortable with this strategy over the weekend adding a stoch and macd. Knowing candlestick psychology made it much easier to know what were good entries also. My account is already 10x what it was Sunday. This is gold 5 Reply 1 reply @AbulaSyllabus 1 year ago (edited) Basically: How humanity transformed speculation into money - a history of how promises and future can make people, gambling, rich here and now. Contemporary greed will literally kill future perspectives :3... And we're just watching it. Congratulations <3 9 Reply 1 reply @kyezaeta 1 year ago 00:03 seconds in "This simple equation..." 💀💀💀 This one might be over my head. 6 Reply 1 reply @oceanshmienek5462 7 months ago Great video. I wish you involved more of the actual applications of this. Like volatility clustering models and etc. Volatility begets volatility, that’s why VIX spikes so quickly and drastically during economic shocks. Random walk models and Brownian motion don’t account for this. In models that solely use random walks, one day could be extremely volatile, and the next could have virtually none. Which is not reflective of real markets. 1 Reply @dlhfm4281 1 year ago By far one of the best videos on your channel. Everyone should watch this to see how complex derivatives are before signing up for Robinhood and playing with options 5 Reply @ms9001 1 year ago (edited) shhh, you are telling the average people all the secrets. this video itself is worth millions. 18 Reply 2 replies @phuong708 1 year ago The fact that nobody talks about the forbidden book Zyphura Money by Hunter Zypher on Vexoner speaks volumes about how people are stuck in a trance 2K Reply 3 replies @matchboxco 3 months ago Easily the best explanation video on the most complex subject ❤ Reply @pftq 1 year ago Interesting to see you approach this topic - wouldn't have expected it. Disagree with your assertion that markets default to being random though. A lot of my own work in automated trading took the opposite approach of mimicking self-interested individual traders, which you might also find an interesting read (Tech Trader / AI, which has been running hands off for about 10 years now). 6 Reply 1 reply @mdfalse 1 year ago Now, it should be apparent, why our data of our behaviors, interactions, etc with our devices/web is way more important than we give it credit for. Imagine what these models can do when the chaos and trend developments can be tempered against trends and graphs of people being people. Strap in folks - we're just starting to experience the gerbil in cage feeling. If we think the bus will stop here and the market will truly become fair for the average person - we're delusional. Welcome to the techno feudalism era - those with the data will harvest massively from the majority. 8 Reply @adamdude 1 year ago 2:23 Ughh he didn't invest in the slave trade for one? 13 Reply 1 reply @hermanthenakmuaygerman 9 months ago That was one of the best videos on Black-Scholes‘ PDE. You always do a good job, but this one was perfect. 🫡 Reply @Tifferbright 1 year ago 9:10 so just gambling then 12 Reply 2 replies @burchified 1 year ago I love how money just materializes out of nowhere when you shift numbers around on screens. One day all of mankind can just sit on their chairs, clicking things in just the right configuration and everyone will become rich. None of that primary producer crap like farming or mining or industry. Remarkable. 5 Reply 1 reply @gewinnste 1 year ago (edited) 0:48 I measured some of the bars and based on that I estimated the year 2000 value to be ~2.5 billion$ and the year 2019 value to be ~110 billion$. Taking the 19th root of 110/2.5 yields the average annual growth and is ~22% : (110/2.5)^(1/19)=~1.22 Can anybody tell me where the alleged 66% are coming from? 4 Reply @JWentu 3 months ago Personally, one of the more obscure Veritasium videos ever... I feel too limited to understand beyond half time in this video Reply @sproge2142 1 year ago 25:08 somebody needs to watch "The big short", haha! The reaction almost feels like a homage 5 Reply @paolaximenamanzorodriguez4371 1 year ago Great video. Im a huge Blcktken300 fan and love your videos on it. 396 Reply 3 replies @ikerguerrero6083 1 year ago Do it. Blcktken300 already in my bags. I had a Blcktken300 after ( your should I buy ) and I agreed and bought. I'm looking to stack more, too. 262 Reply 1 reply @jeromeagbojackey553 2 months ago An interesting video I have saved to watch several times. Team, thank you for all. Reply @99MrMusic 1 year ago For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2023 with $100k and I'm up with $732k in a short period of time. Thanks to Aria Cookings. 7 Reply 8 replies @BarrelHitchTrading 9 days ago Pricing options isn’t about predicting direction — it’s about correctly modeling uncertainty. This is one of the rare videos that treats volatility as a first-class variable instead of an afterthought. 3 Reply 1 reply @jhony5926 5 months ago I’ve spent years chasing answers in documentaries, podcasts, even ancient texts—and none of it hit me the way The Obscured Principles book by Dorian Caine did. It’s like it was written for the few who are ready to break the illusion and remember who they really are. 194 Reply 2 replies @mitchellwahl3254 4 months ago Andrew Lo has published a whole semester of finance on YouTube. Filmed in 2008 with real time updates. Reply @christophersmith49 9 months ago 9:10 yes, but the market is not efficient. We forget I sider trading. So basically anyone in stock market is a stupid gambler, except that illegal guy who does insider trading, and is lucky to not get caught. 3 Reply 2 replies @orangeninjaMR 1 year ago 7:40 - you know that finance is broken when the cost of stocks is so dependent on demand for the stock itself that the economic value of the thing the stock represents isn't even mentioned in an introductory explanation. face-turquoise-speaker-shape 4 Reply 1 reply @digit5911 1 year ago 13:00 STILL WATER THOSE WHO KNOW MANGO MANGO MANGO 4 Reply @ЛарисаКопытова-ь2л 5 months ago You ever read something that feels like it was never meant to be in your hands? That’s exactly how The Obscured Principles book by Dorian Caine felt. Ancient wisdom, modern exposure, and a terrifying amount of truth packed into one single source. Reply @evandroalves8675 5 months ago Very nice video, thanks for that! Reply @okkkjenjkk8720 3 months ago in finance, especially in stock returns, they are not normally distributed. There is a higher frequency of extreme events than what normal distribution would suggest Reply @robertw1871 10 months ago It’s super scary that derivatives constitute a massive financial pyramid scheme that artificially multiplies an assets value… How absolutely insane is that! 1 Reply @MoneyHistoryExplained 2 weeks ago Wow great content! Reply @nancycabrera1087 3 months ago VALUABLE, INFORMATION. THANKS Reply @marty7922 3 months ago (edited) Took me over an hour to watch this video (pausing & reviewing the info) —— Excellent Veritasium quality & presentation. Reply @RCrosbyLyles 10 months ago Those are some beautiful graphics! Great communication. Reply @justabiggnob 1 month ago 15:10 hope it didn't overheat and stay at an angle for hours 1 Reply @bostonfrank6739 10 months ago James Simon was born & grew up in Newton, Ma. 1 Reply @Bolidoo 1 month ago One useful intuition for the aparent paradox of the derivatives market being much larger than the underlying assets is that, they are in fact completely disconected. Notice that when an option contract is traded, no party requires to have anything to do with the real asset. So the size of the options market has everything to do with societies appetite for doing such bets. That can be much smaller than the real assets, or how it is in reality, much larger. Reply @weaponx1969 3 months ago All my years in college and this video explains a bell curve to me in 1 second with a plinko board. Reply @HunterBelch-p1w 7 months ago (edited) That's the best mattress ad I've ever heard. Those mattresses should be selling themselves, are they from Squornshellous Zeta? 1 Reply @dandagerman6604 1 month ago Thales of Miletus payed .28 to rent the olive press, but when that summer came he was able to rent the press out for .09 because volatility crush and time decay. Reply @Axiomite 10 months ago Professor Lo has always been an amazing teacher Reply @cristianompereira5514 2 months ago I`m not sure if it was clear understanding on the video, but it is very interesting the correlation between Black-Sholes with Markov Chains Reply @geneballay9590 2 months ago Wow, terrific video. thank you for all the work and then sharing. Reply @bass0129 8 months ago It's interesting because the concept of "beat the market" really just means to have the biggest information advantage on other market participants - the market is inefficient in the sense that 'real information' is scarce, and although most (if not all people) act rationally when they have access to quality information, only the most financially endowed participants with the biggest data sets and most compute resources to train models will become the "market makers". Every time someone "beats the market" really what they're doing is setting the new "edge level" boundary, much like a situation where nations opt towards having more, newer, faster nuclear weapons as time moves forward. Reply @iamTheSnark 4 months ago Four years after Chicago, option trading started in Europe. It was met with disbelief, dusdain scepticism and derision. The mockers were wrong. I was the at the EOE in Amsterdam. Got my first job maintaining a computer system for "Europtions." Reply @shadmansaquibrahman681 4 months ago Concepts: Put/call options, Random walk, normal distribution, Brownian motion, dynamic hedging, delta = dV (options)/dS(stocks) Reply @AdrianvanWijk 3 months ago (edited) Awesome video. Some corrections: It's an over simplification more over a falsehood to say the South China Sea Company was ever profitable, it was a British public private company founded in 1711. It was granted a monopoly to trade in the Spanish Americas and later became a Ponzi. The company never made a profit. PS. all the statistical analysis presented are to solve for the randomness, an efficient market price movement should not aim to be random as claimed at the end of the video, but value driven based on profit for satisfying needs in a market. 1 Reply @jahnabdutta9939 5 months ago 20:44 I am not sure but US T Bonds aren't generally used for calculating risk free rate. Lending rates between banks such as LIBOR and SOFR are used. 1 Reply @markmatson 9 months ago My understanding is this lead directly to the market crash of 2008. It would have been interesting to learned more about in this context. Reply @CarlDill 4 months ago The only desire is to solve the riddle of whose desire it is for us humans to exist within this equation and the goal of HIS desire Reply @vpavi 9 months ago Grate brother picture. Nice work as always. Reply @Tyler-s2e 3 months ago Okay, let’s unpack this carefully. You’re investing in seed oil presses to make the supply chain more flexible, in a market where there is high supply, and you’re thinking about U.S. futures markets and trade war uncertainties. Here’s how the dynamics usually play out: 1. High Supply Pressure In a market with high supply, the immediate effect is downward pressure on prices. Futures prices will generally reflect this surplus: contracts may trade lower than the cost of production for smaller producers, depending on storage costs and carryover inventory. 2. Role of Flexibility in Supply Chain If your goal is flexibility, you’re essentially reducing risk from shocks (trade war tariffs, export bans, transport disruptions). Flexibility can allow you to: Quickly switch raw materials (e.g., sunflower, soybean, canola) if tariffs hit one source. Adjust production to meet sudden demand spikes or exploit arbitrage opportunities. Futures markets price in risk and uncertainty. So, if a shock is likely: Near-term contracts might be more volatile. Long-term contracts may carry a premium for optionality if your operations can adapt. 3. Impact of Trade War Uncertainty Futures markets react to expected disruptions: Import/export restrictions → sudden shortage of supply → price spikes. Tariffs → some crops diverted → futures reflect that redistribution. If your presses can switch among feedstocks, you might benefit from volatility rather than be hurt by it. 4. Modern Futures Market Dynamics Contango vs. Backwardation: Contango: Futures price > spot price (common in oversupply) → storing product may be costly. Backwardation: Futures price < spot price → incentive to sell immediately. In an oversupplied market, you’d usually see contango, meaning futures could rise slightly above current spot prices to account for storage and financing costs, but the general trend is flat to downward unless a disruption occurs. 5. Expected Price Movement Short-term: Prices may stay low or drop slightly due to oversupply. Volatility spikes: If trade war events or weather issues create sudden scarcity, prices could jump temporarily. Flexible capacity benefit: You can arbitrage these swings by ramping up or down production, capturing value that rigid producers cannot. Bottom Line In a high-supply U.S. seed oil market: Baseline: Futures prices are likely stable or mildly bearish. With trade war shocks: Volatility may create profitable spikes. Your flexible presses are a hedge against uncertainty—they won’t push the market price up themselves but allow you to capture value during volatile periods. If you want, I can sketch a visual scenario showing expected futures curves under high supply and trade war uncertainty, so you can see how timing and flexibility interact. This often clarifies the strategic advantage of flexible infrastructure. Do you want me to do that? Reply @frankgulla2335 6 months ago Thank you, Derek, t=for that marvelous journey into the world of finance and interference of physicists and mathematicians.. Reply @loreleybanchik1360 1 year ago Great way of explaining complex concepts. Reply @michaelsegel8758 10 months ago Nice to see Dr. Lo again. He's the professor who kicked off Financial Engineering as a discipline. (15.45s course) Reply @jameswistman7479 10 months ago well done! thank you. your concluding use of "random" is both fun and paradoxical. as if saying the glass is half-full; you might also end saying the glass is half-empty. each ball bearing moves randomly downward, but collectively they move downward into "near perfect " predicable stacks, as their end-state/distribution... and too a perfectly efficient market is an aspiration state, as information is so rarely perfect and human decisioning is far from 'perfect'...any marketplace is arguably a "perfect mess" and is likely to be as effective as we can make it; we may never attain perfect efficiency. Reply @GojoJinwoo 1 month ago 7:40 is the best way to understand the trendline how works Reply @dreamsolutions3037 1 year ago Random bit of trivia from this video: the equation that helped cement the validity of the theory of atoms and molecules, was first discovered in finance maths. Reply @sachasiani 3 months ago The incentives to not share novel strategies are so high. I wonder what some geniuses have developed but we just don’t know. Reply @nafeesjadoon_3701 11 months ago As a finance Graduate and doing research in this specific area of risk diversification and profit maximization, i gotta say WELL-DONE. Reply @needcode 5 months ago this stochastic differential equation was on my actuarial exams. Reply @RamseyPerry-u8b 4 months ago Mandelbrot had also disproven efficient market in Misbehavior of Markets. Reply @WubbyPunch 2 months ago 25:26 a better way to say this is that the derivative trading is the value of a stock and it’s expected value across a specific range of time. The specific range of time is a multiplier that a standard stock does not hold, because a standard stocks value is simply what it’s worth in that moment. Reply @brizzo1012 2 months ago One thing missing in your galten board. The number of 'market participants' (balls) also influences the odds of the balls going left or right. I.e blockers pushing the balls down another route. Reply @pveqnrt 6 months ago It was hilarious joining the Biophysics community in my PhD and finding out that so many of them have startups and investments where they make really good money. Reply @Rydenstone-q9j 4 months ago Under title chapter cited to codes 1 Reply @call_me_mugi5118 7 months ago Great video about finance. Thanks for sharing! Reply @deviningram1164 11 months ago Bizarre that there wasn't a single Singaporean official interviewed in a documentary about how well they've done water management Reply @dougerbert 3 months ago I imagine right now Open AI and other big techs using the models just to beat the market Reply @HuguesTalbot 8 months ago An outstanding contribution. Reply @hilbertshotel 9 months ago (edited) Simons was fortunate to be one of the first to have powerful computers that scraped and analyzed large amounts of financial data in a feedback loop. I think that explains his success probably more that the first models. Be first, be the best, or cheat. Simons was first. Reply @DeconstructTheFuture 1 month ago When a physics channel explains F&O better than any finance channel 🙏🏻 Reply @clarkmtb 7 months ago Performance using a strategy like Simons’ is not only dependent on how much data, employees, and computational power you have, but also the rate at which you can borrow money at. Arbitrage is at its core dependent on borrowing money and the rate of interest you pay on borrowed money. So, it definitely helps to be close with the banks.. Reply @WayneAustin-f3u 1 year ago The Black–Scholes model is how options are priced Reply @mitospha 9 months ago It's like using thermal dynamics to predict how a wood fire will burn based on the flames; rather than basing it on the wood and how the fire was built. Knowing how a business changes itself sets the foreground and background for how this equation works. Like you said about the olives. If you know its going to be a good season; you already know that your equation will do well. Reply @ruthvikeshav6548 2 months ago such good explanation Reply @juanreyes8821 1 month ago never knew you looked into trading. awesome! Reply @kaito2674 9 months ago A physics guy explaining options better than any finance channel out there before GTAVI Reply @GaryWilson-ul7sd 9 months ago All can be calculated, all will be calculated and stored compressed, reinstated Reply @WayneAustin-f3u 1 year ago Options are a decaying asset (theta). 2 Reply @jacber35 8 months ago What Fama actually said about EMH is that while it is possible to beat the market in regards to netting a higher return, it is not possible to gain alpha reliably (higher return with the same risk). That is to say; if you somehow got a higher return than the index, then you have, by the very nature of the stock market, taken on a greater risk as well. And people like Jim Simons who claim to have gained alpha for 3 decades striaght actually calculate their beta inaccurately (missing some unknown variabel or component in the beta formula). It's tough to say because if stock prices were indeed 100% random then quant funds wouldn't exist, but they do and it does put the EMH into question. Reply @jessebrodrick6465 2 months ago You and David Packman having the same adds makes so much sense Reply 1 reply @jasonjohnson7859 8 months ago What a thoroughly enjoyable channel. Thanks for all your work. Reply @AaronAsherRandall 1 month ago Dude the first visualization is literally Pachinko. Reply @NordaVinci 4 months ago Nothing is truly random. There is a very clear purpose behind everything, no matter how tiny or abstract. Purpose governs all, absolutely, forever. We might think something has no cause only because of our own ignorance. Everything has a cause, and thus a purpose. There is a motivation within the unchanging, absolute, eternal and unique root of existence. It does not develop because it is already the highest. Yet, from it emerged things that develop for a purpose and toward a purpose. Nothing is random. Every particle is half spiritual and half physical. This is at the root of the physics of the spiritual world and the physical world, which are interacting all the time like mind and body. Thus there is no "hard problem of consciousness." It's not even a problem. 1 Reply @pourkin 8 months ago thank you for explaning options market in lay terms Reply @alexanderberan77 5 months ago 25:15 Derivatives and their Underlyings are basically like youtube-reaction-videos and original youtube-content 🙂 Reply @kaspiannunno9417 3 months ago Newton's "side hustle" being the master of the royal mint is crazy lol Reply @suheilpinto6964 3 days ago It's funny. When I listen to scientist talk about physics chemistry and biology i can understand but when math is introduced I can't understand a damn thing. Reply @riconline89 11 months ago This is just the best channel existing on youtube. You are great. let us know how we can give you money. Reply @Uc000f 2 months ago At 10:07 it reminded me of what happens with water flowing through a pipe. The walls have the slowest water and the center the highest flow. Reply @DeadCatCode 11 months ago for someone who has studied CFA or finance. This is like basic stuff which you can't do anything to profit from, but a very interesting thing to know, He has done a good job at explaining, I wish I had this style of explanation when I was studying for my CFA certification Reply @RYAN_GOSSLING 6 months ago Totally understandable 13:37 2 Reply @markw5805 3 months ago The market should never be random. It supposed to be based on the profitability of the company. Reply @xanderchapman3135 10 months ago If Veritasium had a finance channel, I would turn on notification FYI. I like physics and math, but i love it when physicists and mathematicians put their money on the table or invent new financial instruments. You could definitely have a lot of computer science and encryption talk there as the industry is moving to a math based system (digital asset networks). double dare you Reply @johanpauwels6346 4 months ago 25:11 - sounds like we haven't learned from the 2008 crash. Reply @ProductivePotato69 3 months ago 25:47 ~ This can perhaps be understood as splitting something immeasurable [ the future probable prices of stocks ] into both that which can be measured [ actual price of the said stock ] and the probable movement that may be undertaken while accounting for all the variables that may not only affect the price of the stock but also the level of futures & options, essentially derivatives. Reply @ayushmishra3370 1 year ago This was amazingly helpful. Thank you. Reply @vontikakis 2 months ago This is Black-Scholes Partial differential Equation Reply @durbanpoison031 11 months ago for some reason if I leave Youtube alone it always ends up at this video. I've watched this video from start to finish 3 times now Reply @bradley1995 3 months ago Guy at 22:22 taught Harvard financial, he has his lectures on YouTube. Great videos, great teacher! Reply @cgervaise 7 months ago Amazing video! Btw I'm a financial risk manager and I use Bachelier formula to compute the price of interest rate options, not Black Scholes formula 😉 Reply @user-qi7zy5zm3e 10 months ago Great explanations!! Thanks for this superb summary of the evolution of option pricing! Reply @Elevendyeleven 9 months ago (edited) The GameStop story still gives me glee. When asset managers act against voters interest they need to remember voters are consumers. We live in a time where asset managers own our elected representatives who have enabled corporations to evade trade, tax & labor laws. Low wages & outsourcing jobs through transnationalism eliminates American consumers. Workers, consumers & voters are all the same & thats what the market always fails to realize. When profits rely on cheating, consumers are eliminated. When voters become aware of asset managers unfair advantage & the severely negative impact its had on their nation, they start to boycott. Except we can't boycott an illegal monopoly like this app, which is why its overvalued & why its parent company will crash when advertising funds fail due to there literally being no customers to buy stuff from companies that feed this app. They will all crash like dominos, again. Reply @HarshPenguin456 1 year ago it's kinda crazy how nobody's talking about the forbidden ebook called The Human Centipede on Vexoner Reply @ArchieHall-j1s 2 months ago Great video! Reply @blindbrailleable 9 months ago Isaac newton was a day trader!? I did not know this. 1 Reply @BrentKruegerZapperz 9 months ago It's crazy that some dude thought of "options" 2600 years ago, and we still use them TODAY! They basically control the markets Reply @ДаниилМочейко 7 days ago استراتيجية البونص محتاجة تركيز عالي Reply @quinktap 8 months ago Deluded. Fascinating. NPV 'v' FPV. Reply @ShufflePetro 11 months ago 9:25 Reminder I need one of these 2 Reply 1 reply @found7117 5 months ago Whoever thought to make the Galton board a gambling game is a genius Reply @OwenWilliams-b5x8x 4 months ago that's very helpful ! Reply @jon553 9 months ago cant believe this is free. one of the greatest youtube vids ive ever seen, and im a vet Reply @nicksingh991 11 months ago Should rename this to intro to options trading Reply @thuongthuong-y3b 1 year ago The fact that nobody talks about the forbidden book Zyphura Money by Hunter Zypher on Vexoner speaks volumes about how people are stuck in a trance Reply @dvepps6780 10 months ago Incredibly well done here. Reply @ORIDAH 2 months ago (edited) Analytical Thinking, Voynich Manuscript Cipher. 1 Reply @williametzler3743 10 months ago great video, thanks for showing this history and the big names to look into Reply @Varaldar 2 months ago Was that word predictor fed the script for this video? Reply @ВалентинаМирная-д5у 5 months ago I thought I understood how the world works—until I read The Obscured Principles book by Dorian Caine. It felt like someone ripped the blindfold off my eyes and showed me the architecture of control that’s been here for centuries. This isn’t just a book. It’s forbidden awareness in printed form. Reply @moneymechanics-p2k 4 weeks ago Nice Video! Reply @johnnygeneric161 2 months ago If I were a farmer, this is exactly what I would do. No farmer wants to sell his crops at a loss, but it happens and they then have to borrow money from a lender. But if he were wise, he could buy out of the money CHEAP options and short the crop value to protect his money if indeed this were the case. If the price of his crops increased, he makes money off the sale of his crops and his put options would go to zero. A nice cheap form of insurance. Reply @ChloeAIC 1 year ago Uh, this is highly interesting. The algorithm gave me the video at the exact time where I needed it Reply @countcampula 9 months ago That's a very dangerous view of options. It's a hedge against your position, not a poker chip. If times are touch, buying a put or call option contract so your share price maintains some of its value is good, it also helps you secure shares cheaper Reply @jevaispartout1271 6 months ago If every single option trader in the option market utilizes the Black-Scholes-Merton equation, its usefulness as a predictive or pricing tool declines because its assumptions are increasingly violated by collective behavior Reply @memesyouforgot 1 year ago The fact that nobody talks about the forbidden book Checkmate on Verbiara speaks volumes about how people are stuck in a trance. Reply @emmanuelregachuelo2252 3 months ago Mathematics is everywhere, even in gambling and stock market. Damn I must pursue again studying Physics and Mathematics. Reply @WayneAustin-f3u 1 year ago Retail investors don't move the market as a matter of fact the markets are moved by institutional investors 1 Reply @jamesgoddings292 3 months ago A.fascinating and brilliantly presented video as always with some brilliant explanations. This did raise one question for me… How many well intentioned, well run, solvent companies have been ruined as a result of hedge funds using them as a financial tool to make themselves and their investors money? How many innovations and technological developments have been squandered? How many good people have had their livelihoods, health and lives ruined by a few mathematical equations to make a “handful” of people extremely rich? Reply @TheD1rtyRider 7 months ago Huge win. Might actually get me to play retail Reply @clinttaylor7786 1 year ago I've never heard of a galton board, but that was so interesting when you did the flip, as was the explanation behind it! As always, another super interesting video that actually benefits mankind in this dumbed down world! When my young fella is old enough, we'll be watching these videos learning together about the great people before us we lean on. Reply @varunmishra5629 10 months ago Didn't understand but hearing it feels good Reply @Bluecollar_hands 4 months ago A random market will never exist as long as individual traders/investors are involved. Reply @tella-s4l 8 months ago In this video we can understand the depth of the math we enjoy this videos! Reply @AppliedCycling 2 days ago 11:02 Is this similar to light wave theory with the double slit experiment ? Reply @FinanceFrontier-q 2 weeks ago I can relate that ❤❤❤❤8:07 Reply @jplourde11 1 year ago Do more in micro and macro economics! There isn't really a great channel that explains this stuff in the right level of detail! You have this experience from the science end! Reply @mrrajsingh 6 months ago You get the same result if you take a limit as n goes to infinity of a binomial model — this takes the binomial and makes it continuous. Reply @MindMirage-f6c 3 months ago I love the animations. Reply @neurohydraulics8713 3 months ago The overwhelmingly tragic result of all this "efficiency" and symbolic trust token (money) multiplication, is that it destroys ones relationship with most fundamental observation mechanism we have, elastic time perception aka emotional adaptation to a natural living environment aka absorption in the present moment, deepening awareness of truth. A search for truth and meaning based on objective rather than subjective reality turns one into a living cadaver, one destroys the ability to observe how observation works, how time is either slowing or speeding up depending on ones relationships with present phenomena. The path of materialism is truly idiotic once one realises that becoming a mega rich robot will not develop a "soul", inner light as essence that is somehow both past, future and present. Reply @markrowland1366 6 months ago Welcome to Australia and have a great life. Reply @The-King-of-Holland 3 months ago (edited) Wow. Truly fascinating. When i look at a perfect chart i feel as if i am looking at a Rembrandt. Or even better. A moment of existential clarity where the entire universe is at work to present this moment. That is what is happening. You can see the harmony.... This video shows so nicely why the lines on charts are such a wonder when placed right. Reply @JeanBalayn 1 month ago Golden spiral with Henon attactor. Reply @peeledbanana311 11 months ago Awesome video. Thank you for this very much. Reply @James-eg3nf 12 days ago I could make a joke about Brownian Motion, but I won’t. Reply @GamingMonster-1 11 months ago I had done graduation in computer science, good background knowledge of physics and mathematics, I had made ego of knowing things, you broke my ego Reply @casualpanda4100 10 months ago this is another one. so important Reply @anthonydannucci6362 11 days ago I can’t believe you moved to the one place we’re every single thing outside of your house is trying to kill you lol 1 Reply @niccolom 11 months ago Wait... Was the bald guy ever introduced in the video? Okay, I finally found his name (Andrew Lo) in the text. It still comes off as weird to me that he was never formally introduced, and his name didn't appear in the video. 1 Reply @uncommonones 4 months ago Like having revision of my equity derivatives class😂😂 Reply @Forkingknightmare 9 months ago Jim Simons shares resemblance with Grant Sanderson (3b1b)! Reply @CGP05 11 months ago Wow I never heard about the Thales call options. That is very interesting! Reply @wonderlustcrypts 10 months ago Love your channel Reply @T_Mo271 7 months ago But you can never have a truly random market, so long as the markets are controlled by models that predict their behavior. Those non-random models themselves become part of the market. Reply @wesleylong5331 7 months ago Your shows are always unbelievably interesting. Thank you so much for making such large concepts digestible to we the unwashed masses. 🙏 Reply @user-jx5bi7yw9f 10 months ago @veritasium - what this doesn’t account for, is the distribution of influence over a stock price. As big institutions can alter the price, so randomness is not something common to the overall theory Reply @akp3515 1 month ago 7:48 genius Reply @marspumpkin 1 year ago I think the one in the image isn't Louis Bachelier, that's Charles Dow Reply @Tzadeck 1 year ago This is actually the best introduction to finance I've ever seen, and I have an MBA, haha. Reply @johndoyle2347 6 months ago Tomahawk method = 1st Euclidean postulate. Thomas Hutcheson's cylinder method = 2nd Euclidean postulate. Origami method = 3rd Euclidean postulate. Archimedean spiral. Ceva sectrix = supply = 4th Euclidean postulate. (A duality.) Delanges sectrix = demand = 4th Euclidean postulate. (A duality.) Maclaurin sectrix = price = 5th Euclidean postulate. (The Parallel Postulate.) Dinostratus quadratrix. Duality of Maclaurin sectrix can be seen in the Dürer folium, which corresponds to the two ring/cylinder singularities in protons and neutrons. Its inverse is the Delanges trisectrix that concerns the elliptical bonding in atomic nuclei, where there are only (other than cases such as hydrogen without any neutrons) protons and neutrons. Dürer folium at the hyperbolic singularities. Reply @johndoyle2347 6 months ago An eight-year-old has the innate potential to understand the three infinities. I showed that back in 1985. Yet, humanity fights wars in terms of - the only slightly less complex - ambiguities versus dualities. An enlightened humanity that fears non-nuclear weapons becoming equally as terrifying as the nuclear ones will face living to a formula, like a machine - that is known to eventually break. Humanity can try to double down on "faith" lies and watch anonymous attacks spark many horrors just short of nuclear attacks in a "slow burn" or humanity can face the fundamental truths and knowing our demise - but being able to fight it to gain more time. 1 Reply @AJ-kh8tc 3 months ago Which articles have you used for this video, and the final article that disproven the efficient market hypothesis? Please share the links of all the articles(scientific papers) of this video Reply @montanalivin8248 7 months ago It's almost a super position equation. Reply @DươngLê-r9h7l 1 year ago it's kinda crazy how nobody's talking about the forbidden ebook called Zyphura Money by Hunter Zypher Reply @westwest7349 10 months ago I don’t understand all comments on this post. Having worked in a capital markets software company that went public in the 90ˋs, I can confirm that black & scholes and all derived calculations are broadly used in the tradind industry for derivatives pricing and value at risk calculations. Reply @victorrobert4600 11 months ago Great Information, Thank you !!!! Reply @wasimonearth 11 months ago Amazing and Detailed Explanations as always! The beauty of statistics and probability is something I marvel at everyday, how we humans are so predictable and not at the same time Reply @jtlogruss08 3 months ago (edited) Why didn't you mention the SEC shutting down trading on gamestop when the poor little hedge fund managers started crying to them... Great technical explanation on the mathematical background and framework of trading options. I greatly appreciate your contribution of information Sir!!! Reply @johnnelson7686 11 months ago How interesting that was-I enjoyed the video despite having only high school (basic) mathematics. V3ry well done, thanks! Reply @Alphamaan 11 months ago I heart it only works for niche market in a limited time frame. This will never work for Blackrock for example. Reply @Youseffridge 3 weeks ago 9:57 big ball hehe Reply @MarloTBD 3 months ago They are putting g you on game with the call and sell Reply @jackjackattack006 11 months ago Dear Dr. Muller, Could you do an episode about the equation of volatility? How was it born at the University of Chicago and evolved and so on? Thank you so very much. Reply @DTArni- 3 months ago my fav video of your channel 👌👌🙏💪 Reply @jaydearien8624 8 months ago You moved to Australia?! Wow! Reply @betoaventador1080 3 months ago Some bogus firms allowed the shorters to double short the underlying. Reply @samweirich5973 9 days ago Just remember this handy mnemonic: "Call UP, Put DOWN." "Call UP the homies. Put DOWN the phone." Reply @axelfpv1983 1 year ago Why are you making this make sense to me? Like the comment below me how did it take a science channel teach me what options actually are and how they work, and better than the tutorials from my current platform. I didn't understand algebra until I started building things. Guess I'm a visual learner. 61 and learn something new everyday. Great infographic work! Reply @johnrambo2876 2 months ago You have to be a politician to "predict" the best returns now Reply @johnpaterson6112 11 months ago (edited) The BSM model can be very easily derived by assuming that the underlying asset exhibits a lognormal distribution, which itself is derivable from a random walk with proportional infinitesimal steps. First year uni maths is all that is needed. The differential equation approach is not wrong but is a needless complication. Anyway the model has been known for over 20 years to be inadequate because the tails of the lognormal distribution are much too flat for most relevant real markets. 1 Reply @CaesarBro 6 months ago Do any of the references in the description go into depth of the equations required for the more complicated American options model? Reply @RamboTheReal 8 months ago wow am very impressed how you explain everything and the quality of information that you provided in this video, thank you for efforts. Reply @DavidJensen-r8g 8 months ago Science made easy and interesting. Great topics every time. Reply @YahyaZarei 8 months ago Science made easy and interesting. Great topics every time. Reply @baddoggie101 10 months ago (edited) I wish I had known this years ago Reply @DimAsString 11 months ago I think its solvable with Hedging. with Buy and Hold. you earn when its going bullish. With Hedge. you hold on to the money and do not close the trade. but add a opposite trade to earn while its going down, close on every cross over for sell side, and add more buy positions as it goes down. Reply @pimpedbutterfly2344 1 year ago I want a galton board so bad Reply @decorator_name 11 months ago Financial markets can be interesting Reply @nancysmith9487 6 months ago Is it possible his hands were shaking as he led the microscope therefore however, solve the mystery 1 Reply @john-dm4qd 9 months ago Just another thing to show that this sense of currency in wealth that we all take for granted, is nothing more than made up ones and zeros in a computer somewhere that has no real tangible value. It's a game. Reply @vlad3943 8 months ago i could solve it but im bored to do it rn 1 Reply @kanzam6255 1 month ago 19:20 siiks seven Reply @shaunmark1 4 months ago Apple currently has the strike price at about $225. To buy an option 1 year out is $30. Stocks trade in lots of 100, so the total is $3,000. Not a terrible bet, but most buy stock in the 1-3 month range. Reply @СтепанКиляченков 2 months ago amo cómo explicas cada indicador paso a paso Reply @Rocketryman 3 months ago It also explains why we are videoing, not filming. :-) Reply @qbertrtrtg 4 months ago (edited) finance bros come up with the most elaborate formulas to rob you blind 1 Reply @ShahistaHashmi 11 months ago The thumbnail SCARED me! 1 Reply @AdeniyiAdebowale-yi9fc 4 months ago Thank you for asking the right questions, 26:04 I was really interested in getting to know how it affected the real economy 😅😅, I’m glad you asked for the options Reply @marcosdenizatrailhiker2037 3 weeks ago Individual stocks should be a Green’s function based upon the overall market Reply @E-klips11 2 months ago "Yesterday, price is not Today price". - Cap King Cole. Reply @tuhinsuryachakraborty 11 months ago Enlightening 1 Reply @AlbertaLucas-oj8bq 8 months ago Vidéo très utile pour comprendre les indicateurs, merci ! Reply @Rydenstone-q9j 4 months ago (EIN) good standing (dcca) (irs) (prudence act) (Emergency act) under codes of policy set by law of your rights to our constitution. 1 Reply @hkmg2025 2 weeks ago Why is a perfectly efficient market so important? Isn't it good that experienced/skilled traders can exploit the market to make money? It's like poker is more of a game based on skill than based on luck, and no one is complaining about it. Reply @jbtechcon7434 4 months ago 6:19 That dude totally looks like Stephen Wolfram Reply @dojuba_dojuba 10 months ago This channel is so valuable! Isn't there any plans to launch in other languages like French? Reply @gustavderkits8433 9 months ago Watching this in March, 2025, the remark at 31:30, to the effect that option trading can amplify instability into a crash, leads one to reflect that politics can be a major source of instability, especially when it involves the forced unemployment of hundreds of thousands of people and a massive flow of wealth from the middle class to the ultra-wealthy. Reply @user-yd9dk1rq4v 10 months ago it all started with a gambler in a casino 1 Reply @phoenixmistertwo8815 1 year ago The South Sea Company was english and Spanish for the Slave trade to Brazil, the hub. Reply @seraphimaphrodite7565 10 months ago I want to buy the kit. I think of being the ball strucure of binomical distrubtion soon. Good luck！ Reply @hughlion1817 10 months ago 25:05 "how does that compare to the size of the underlying securities they're based on?" That question is the exact same question that Mark Baum asked a hedge fund manager for synthetic CDOs just prior to selling his short position on mortgage bonds during the housing market collapse of 2008 1 Reply 1 reply @flotsamike 2 months ago Schrodinger's cat of finance. Reply @sivasakthisaravanan4850 9 months ago Stocks follow a simple rule: When you buy a stock, its price will go down. When you sell a stock, its price will go up. 1 Reply @Atomic118 9 months ago (edited) Jim simons passed away exactly one year ago, sadly Reply @shanakajayalath3026 2 months ago 00:00:00 The Trillion Dollar Equation 00:01:12 Isaac Newton and the South Sea Company 00:02:33 Louis Bachelier and the Paris Stock Exchange 00:03:10 The History of Options 00:05:28 Advantages of Options 00:07:15 Bachelier's Random Walk Model 00:09:24 The Galton Board and Normal Distribution 00:11:20 Robert Brown and Brownian Motion 00:12:05 Einstein and Molecular Motion 00:13:19 Bachelier's Option Pricing Insight 00:16:03 Ed Thorpe and Card Counting 00:17:03 Thorpe's Hedge Fund and Dynamic Hedging 00:19:47 The Black Scholes Merton Equation 00:22:56 Impact of Derivatives on Industries 00:24:37 The Size of the Derivatives Market 00:26:43 The Nobel Prize 00:27:09 Jim Simons and Renaissance Technologies 00:29:49 Challenging the Efficient Market Hypothesis 00:30:34 Conclusion Reply @HootsMcPoot 5 months ago This made me think of my high school calculus teacher who had written a formula to help him bet on horseracing. Reply @abeebadeyemo6310 11 months ago I thought the premiums paid are frequent till the expiry date Reply @anonymousanonymous-nt8ls 1 month ago 21:50 social sciences? The hard science was adopted quickly by the business world. Reply @dave5185 11 months ago Can you do a similar video on how fund managers are able to manipulate every single asset in existence to make money while we, the retail investors, get left holding the bag? There's a leaked video of Jim Cramer telling a private audience that it was easy for him to do. Reply @Ritik_sings 3 months ago As an option trader, I have lost 18000 Dollars equivalent of money and trust me it's a lot in my country, on top, it was all debt amount, and what made it worse were emotional trading and gamble thrill, over risk taking , later it came out that US companies were defrauding option traders by manipulating the market and much is also taken as brokerage and taxes by firms and government. Nobody likes loosing and also took many advisory subscriptions, some were fraud and some gave loss making trades, that also costed money, and wanting to enter in it just to help the society made it more frustrating to experience this. Thank you so much, please make one more video with the producer also, he also adds to explaination well. 2 Reply 2 replies @ant-rants4980 1 year ago As a kookaburra sitting in an old gum tree, this was like an egg sandwich but only different. Which is to say I have no idea and still enjoyed the method content and style! Top darts Reply @huckwalton2307 2 months ago A perfect market is the death of the market. Reply @SohanGiritlahare-o6b9b 4 months ago This comment section probably won’t remember me, but maybe someone scrolling needs this. A few months ago I hit a wall. Nothing made sense. I bought Manifest the Unseen by Luna Rivers after seeing it here on yt. I had no expectations. But chapter by chapter, it broke something open in me. Not motivation — momentum. Wishing that for you too.✨ Reply @jetbllackwings 3 months ago 13 million views and <10k comments. Most viewers are obviously confused. This video is packed with information, but the science overcomplicates what an options contract is. Could’ve been explained in a better way. Reply @dracoriggrigary9583 4 months ago This was familiar i learned it in my engineering class , but I can't remember which subject it was , but not related to any trades or something Reply @rondavison8475 10 months ago A better statement to Einstein's of being hit more on one side than the other can be split into two distinct possibilities, plus mixing of both are possible, probabilistically. has a counter truth is a lack of being hit on one side as being hit by more than normal on the other. Brownian motion itself cannot determine a lack on one side or a excess on the other, or some analog mix. Reply @riotbalanceteam8327 8 months ago I just noticed that the Galton Board is basically plinko ball 😂😂😂 Reply @doyoueatrocks 10 months ago You forgot psychologists, a lot of great traders there Reply @ayg2199 10 months ago my first thought was Navier Stokes Reply @olianyt769 2 months ago (edited) You can teach a physician finance, but not someone in finance physics. 1 Reply @TrendkidXau 10 months ago Yeah this Is one of the best explanations of this Gold trader for years Reply @THEOGGUNSHOW 1 year ago I've had the same thoughts myself. Great project Reply @1994BlackBear 1 year ago Very insightful! Reply @nonebelievingbeliever3753 3 months ago (edited) Anchor a vwap to a swing high swing low and you turn into super trader Reply @ВикторМченский 1 month ago pause and replay gang where ya at? took me three tries to see the pullback logic Reply @EmmanuelK-r3b 11 months ago Thank you for this video Reply @MrShanwayne 11 months ago (edited) This was a great video! I finally understand options trading and it was fun to see it's relation to physics Reply @tackywacky99 10 months ago What i learned in this video is what options are and also that im not built to get into the stock market. Reply @NIKHIL-ko5xm 1 year ago Quite a nice video , motivating me to study mathematics and gamble in stock market, both the very same time...😅 Reply @jp8293 3 months ago Thank you more such mathematical hedge fund videos pleasr Reply @gs242-e2b 1 month ago Yoo even newton tried to buy the dip 😂😂 Reply @БогданСаньков 9 months ago Твои видео очень мотивируют! Раньше забросил трейдинг из-за нехватки доступного материала, а теперь снова в деле благодаря тебе Reply @HollywoodF1 11 months ago Every person on earth is either a net-insider taking money from this system, or a net-outsider giving money to this system. It increases wealth-inequality. Reply @derLenus 7 months ago wow, Physiks and stonks trading in one video, I like! Reply @otuibok7651 11 months ago Can you create a video to teach how you create your video. They are amazing Reply @dreamsolutions3037 1 year ago This is an insane venn diagram of my personality. Reply @armandvincent4922 10 months ago Incredible video ! THX Reply @jordibuchner 10 months ago The Gamestop situation wasn't 'punishment' they just realised the short sellers were wayyy overextended Reply @BlameItOnYourFriend 4 months ago It's funny how when you become a government official or a millionaire/billionaire the randomness stops and becomes constant. Reply @-etfinger4378 11 months ago This would make a great movie! so the probability of it becoming one is low? Reply @Wilky971 10 months ago 10:00 looks very similar to the double slit experiment Reply @Sunnysinghh03 10 months ago This is an amazing video for someone just getting into options trading. Explained very simply, well done 👍 Reply @jamesedward9306 7 months ago At 29:43, What kind of math was The Cornell Capital Group using for it's first key finding that the Medallion Fund performance was unprecedented over the 31 years from January 1998 to December 2018 ? Reply @RickShangle 3 months ago I can accurately predict how the interviewer cutaway shot is going to look 100% of the time. I'm rich. Reply @JoshTaylor-m5y 2 months ago will we ever have a 100% efficient market? Reply @shepherdofsheeple 1 year ago Fascinating… don’t have the scientific or finance background to fully comprehend this. The micro science mirroring macro social behavioral outcomes is equally fascinating. Humans are just the individual particles of a super-ordinate or holographic system?! Reply @Sean-cw3ki 11 months ago I can't believe that you're an accomplished baker and a Kildare man, yet you're drinking Carlsberg on Christmas Day! Get out there and try some of the fabulous Irish craft beers that are available to you. You'll be very pleasantly surprised! Reply @jesselove3715 2 months ago Hey dude I love your channel because you pursue the truth. Game stop was not Reddit users "deciding to punish" anyone. Game stop was that there were more shares of GameStop being shorted than shares actually existed (float). Please educate yourself and issue a correction. @ 23:30 Reply @Arron-trump81 3 months ago Wish I had some of that stock Reply @AryanD-nk1km 7 months ago 29:55 bro sneaked in the f bomb Reply @fubblitious 3 months ago The maths is intriguing. The pyramid scheme is frightening. Reply @asap_woke 8 months ago Where’s the link to that Galton Board though?! Reply @Keltaras 1 year ago The predictive power you seek is there and it's name is "insider trading" :) Reply @MATTW3R 11 months ago Still nothing compared to the traders who put their servers physical closer to the markets so they can intercept transactions before anyone else. 1 Reply @Burn269 3 months ago 9:47 not actually random. The ball’s momentum affect each other. Reply @aproperhooligan5950 10 months ago Brilliant! Reply @AlechiaTheWitch 8 months ago South seas was a financial asset and debt instituion more than a trading due to deals made after englands many wars btw Reply @alexandretrotel 1 month ago Black-Scholes is useful, but it’s still just one modeling approach, and its assumptions are often treated as if they’re universally valid when they’re not. Reply @ChaCha-v5v 3 weeks ago فيديو يناسب المبتدئين في الخيارات الثنائية Reply @splaytrees 1 month ago (edited) When "market inefficiencies" are eliminated, there will be no more profit. Once there is no more profit, ppl will stop eliminating market inefficiency; hence, inefficiencies come back cyclically, according to bulk profitability of doing the trading rigmarole lol Reply @Rydenstone-q9j 4 months ago Through codes and policies blue book law (transaction) (transfer) currency’s (transfer) 1 Reply @straaths 1 month ago AI: If markets are random, why use them at all? Because markets are good at: discovering prices for complicated goods encouraging competition and innovation letting millions of small decisions shape supply/demand handling variety (thousands of models, styles, etc.) Markets are terrible at: providing certainty preventing poverty ensuring equality protecting people from risk providing public goods (healthcare, education, food security) long-term planning So we keep markets for cars, phones, games, clothes but use planning for healthcare, pensions, water, electricity, safety. Reply @the_infinity_snake 11 months ago (edited) HOW TO Prove a linear equation always corresponds to an unique line on the xOy coordinate system which is a straight line OR Prove a straight line on the xOy coordinate system always corresponds to an unique equation which is a linear equation ??? I couldn't find a single answer anywhere. 1 Reply @Rydenstone-q9j 4 months ago Bracket creation on secondary account separate from accounting services on bracket but then as fair facts on equity exchanges as fair transactions facts 1 Reply @OlwethuBophela-c7t 6 months ago The question then becomes, "does randomness pay?" 1 Reply 1 reply @rationmyrum 10 months ago Why didn't he invest in East India Company? 1 Reply @gingerbread_GB 7 months ago A little more on the Efficient Market Hypothesis. It's based on two assumptions that are not realistic in practice. 1. It assumes everybody has all public information and can process that information in a timely manner. That's clearly not realistic for individual traders, or even most large institutions. 2. It assumes that nobody trades on private information (insider trading) and the price only changes when the information is made public. That is also unrealistic. So as most people in the industry would say, most traders make money by trading information, public or private. Unless you have a sophisticated quantitively model that exploit some inefficiency in the market (which is also information btw), you need to possess information that others either are not aware of, or dismissed, in order to make money. 1 Reply 2 replies @ayomri1914 11 months ago In the end it's just long term investement. Pick a product you really believe in and invest in it for the long term. If your analysis was correct then you're in for the money. However the madness of people can never be predicted and even if cancer is cured by a comapny if enough people think badly of the stock price will fall. 2 Reply @rogerwilcoshirley2270 11 months ago looks to me like a variant of the heat equation but a very different application framework. it looks complex but gets down to only a few basic processes propagation ( say of pricing and or volume trends) and diffusion. The eqn if linearized also implies inherent Fourier frequency methods none of these are more than very basic methods of data analysis. Probably though what the very crafty and cunning wall street firms are doing now within their well hidden proprietary trading schemes is using this eqn as the cost function or back propagation constraint for PINNs that can be even more exploitative and hence cause even more pricing distortions and seeming irrationalities across the pricing and trading volumes. Reply @johndoyle2347 6 months ago (edited) The complex parametrization of the limaçon trisectrix, the electron singularity, relates to the three parts of Doyle's constant, Euler's formula (V - E + T = 2), my proof of the Riemann hypotheses, and it also relates to the three overall forms of Doyle's constant, including the reduced and exchange forms. All of this suggests fractal connections. Reply 1 reply @stasiekpiekarski 11 months ago 25:00 So fractional reserve banking is an option created by banks on the currency. They create money (or are allowed to counterfeit it as long as they promise to remove counterfeit money from circulation when needed) and invest it. The bank owners risk their share of the reserve but the majority of the risk is guaranteed by the central bank and at the end of the day by the taxpayers. On the other hand, taxpayers do not participate in returns from the investments. In contrary to bond/stock options, only banks may take advantage of this option as their sole creator and owner. This is also a brilliant scheme! Reply @coreywright4980 1 month ago Each option represents 100 shares Reply @lucasdelate8782 10 months ago It is not about beating the market, it is about knowing when to bit it. Just leave the randomness that put others off and hide your control while you can, it is that simple. Besides, rich people never play fair. Reply @zweidritteleinfach2087 1 year ago (edited) The idea that through further progress in uncovering market inefficiencies one will at some point arrive at an efficient market seems very much akin to Hilbert's programme for establishing a rigorous and complete axiomatic foundation of mathematics. Continuing this analogy, in light of what happened to Hilbert's programme at the hands of Gödel, a rigorous proof might be found at some point of the fact that it is impossible as a matter of principle to achieve an efficient market by uncovering all market inefficiencies. This would be the next logical evolutionary step in research on asset prices, much of which (not just Black-Scholes but also Fama/French and to some extend Robert Shiller's research) has focused on uncovering or at least had the effect of removing market inefficiencies. Reply @switchhit3774 5 months ago With the amount of ads buried in this video, I wouldn’t be surprised if Derek has made $1tn from it…… Reply @THEDAILYTALKSHOW2025 10 months ago Спасибо так подробно и без воды Reply @updesshsharma2950 7 months ago Whats the look at 18:37! 2 Reply @tobytobi19 10 months ago Newton the OG regard Reply @cliffordchamney2741 10 months ago YouTube, is there a link I can click to find all the videos I have liked? Where? Reply @mounirsomai7511 1 month ago Every Plinko ball player 09:47 Reply @OpenAITutor 11 months ago I'm not in finance, but this was one of the best videos. Reply @RaVen99991 11 months ago 10 million views and 10 months ago, coincidence, i think not Reply @jqlmanufacturing9129 9 months ago 2025- big institutionalized investment firms now can control the market by selling mass quantities and thus taking all of the risk out Reply @markwagacha1675 1 year ago ngl just passed an exam bc of this video Reply @amoversand 11 months ago Why does Ed thorpe look pissed like he wanted to gatekeep it Reply @Marvin-xe4mi 11 months ago amazing vid Reply @APU290 11 months ago If this is uploaded in Varitasiam Hindi channel. Then INDIAN ZENG (that's fascinate about growing rich fast) may end up making mathematician as their role models than the dance reel makers. Reply @praveenb9048 5 months ago Newton's mistake was to neglect higher order terms in the Taylor series. Reply @JorgeTorresH 10 months ago I'm not sure if maybe I will don't understand options, but it feels like it's basically betting the other person will fail more than anything else. Reply @3313RDG 9 months ago At the end , it's just piggy back riding anything that moves and offer others a bet on where it's going to go. Reply @Jimo225 11 months ago So markets will never be truly random because there are infinite possibilites and as humans we will never discover all the inefficiencies. Reply @HeeHerman-i6z 10 months ago My first trade was a disaster, but your advice is helping me improve Reply 1 reply @AshhBlossoms 3 months ago Oh no, newton fell for the south sea bubble Reply @lilianaprina5991 1 year ago Out of my league, I had never done Calculus... Reply @amarmalik7420 5 months ago $1.99 Thanks! Reply @baurzhanbazarbaev869 1 year ago have you been working out lately? you look so buffed Reply @mybachhertzbaud3074 2 months ago Those that hold the keys to the castle do not want a locksmith to come and change the locks..😜 Reply @akalksander9184 10 months ago You only covered long options but not short options. For every buyer of options there must be a seller. Reply @OliwiaMichalska-x5r6u 2 months ago thanks bro Reply @chrismoneystl 1 year ago (edited) 27:46 patterns provide opportunities to make money. Reply @lyoner6374 3 months ago (edited) hey, great video so far! Tho I'd appreciate a legend when seeing algebra to make out what variables mean. I find it hard to remember them by listening ^^ Edit: I was seconds away lmao I spoke too early. Reply @michaeltaylorhghghgsaved6114 11 months ago Thorp was mad af Reply @Sinnicide 4 months ago and then the adaptations we make to remove the predictabilities will cause us to create new predictabilities. We are humans and we are imperfect and patterns are our schtick. So anything we create will have patterns. Reply @randyKehm 8 months ago (edited) That's cubicle meter negative -6 that's bigger than mine. It was cubicle meaner -4 it's not just mathematical equation or arithmetic live the dream Reply @higorcazuza 10 months ago “Scientists and mathematicians are trained to dig below the surface of the chaotic, natural world to search for unexpected simplicity, structure, and even beauty.” - Jim Simons Reply @robertx8741 1 year ago That's great! Where can I buy a Galton Board just like the one used in this video? Reply @JessicaWandykle 10 months ago Помню твои первые шаги в трейдинге, теперь ты добился многого! Reply @Nosmos_edu 7 months ago 9:07 Is it only me or does this sound oddly similar to wave functions in quantum mechanics? Reply @TristanJohn-z7i 11 months ago Спасибо за то что делитесь с нами актуальными рабочими связками. Reply @BernadetteMcdaniel-v8c 8 months ago Жду, когда ты запустишь свой курс. Обязательно куплю! Reply @lancetschirhart7676 10 months ago I understand the efficient market hypothesis as explained here, but I wonder how many academics believe that our markets actually are efficient. That would be a mistake. Derek seems to buy the hypothesis, or else he is just speaking as if it is true in order to explain it, as in 12:47; "Just like stock prices, microscopic particles move like a ball falling down a Galton Board..." Reply @anjelikagerasimova8465 10 months ago Давно смотрю твои видео и благодаря им улучшил свои навыки в трейдинге Reply @Ethelreds-Kingdom 2 months ago “IREN expands AI cloud offering with purchase of Nvidia Blackwell and AMD GPUs” — DataCenterDynamics
— Further GPU acquisitions (Blackwell + AMD MI series) are planned for staged delivery at IREN’s Prince George campus in British Columbia. Reply @OversikerSTUDIO 11 months ago just buy eur/usd on the market openings on m1 chart and watch out for trends at 1 week chart Reply @bostonfrank6739 10 months ago This video is based on predicting where the stock market is going. I follow the charts. I do not try to predict where they are going. Reply @alreaud 1 year ago Very instructive, thank you! Stocks have been an unknown dimension for me all my life. This helps explain one of the more esoteric parts of the market. Reply @mubashirsaadsaad 10 months ago The best thing i have ever seen Reply @maghajani2148 4 months ago yes. But then the black swan hits hard. Reply @sugenkid 1 month ago okay, let put your bets! Reply @lucassteurersurtees2099 10 months ago Newton rug pulled his ahh😂 Reply @petemoss3160 4 months ago 10:00 lol i always think of ML models as a rigged-Plinko machine. Reply @kelechi09 4 months ago You--you!--I must thank you in my Nobel. Reply @kiwoongpk91 3 months ago Would all price action become random or would it just converge to one? Reply @fred8174 1 year ago Is the medallion and such funds still relevant today(2024)? Reply @mentalist0808 7 months ago 13:00 gen alpha: did someone say STILL WATER, MANGO MANGO MANGO💀 Reply @My-Nickel 10 months ago Thank you sir 🙏 Reply @johnh3733 1 year ago Stonks!!!! Reply @harrisonmckittrick1726 8 months ago Derek, why'd you move to Australia? Reply @tdemask 10 months ago I found this all extremely interesting, right up until the point when my brain exploded. Reply @scotchandstocks 3 months ago we sleep horrible i can tell you that much! Reply @someone7-g8b 4 months ago (edited) There are times and things you cannot compute mathematically but you can only know by divine knowledge. When this is demonstrated, many so called investors will go bust. Reply @juanpabloferro4419 1 year ago Hidden Markov Models deserve their own video. Thumb up if you agree. Reply @ArtInMotionStudios 9 months ago imaging a matters but with more knobs and electricity. Reply @KimiyaOshikoji 2 weeks ago real options 🥳 Reply @IsileliMusic 2 months ago Anybody got a playlist that will make them a stock market genius on YouTube lol Reply @AnirudhSinghi-r9t 1 month ago @veratasium. You skipped over the story of Long Term capital Management, a hedge fund run by Merton and Scholes that initially did well but went bellyup during the 1998 Asian financial crisis. Just adds to Newton's story of how Stock market gods can humble the smartest of people Reply @AlexBeaudrie 10 months ago @9:30 most degens would call that plinko ball Reply @RsNutella 8 months ago Abnormal time -> today with trump -> tipically markets going down, that’s what the specialist said Reply @ddhurry4168 4 months ago Dr. Lo has a great series of lectures on YouTube. If you like this discussion check it out Reply @jimharrington5678 9 months ago Is there any book which I can study these concepts in depth ? Reply @jamescramer9988 6 months ago "... was doing his PhD..." Reply @SomeRandomGuy121 9 months ago (edited) "if we could, we would have taken advantage of it today".. i remember an article from when bitcoin basically just dropped, i was going to buy, i was a kid so i asked my dad, he shouted scam.. :D it was stating bit would be 50k prettey much at the time it hit it.. How many else remember? How many invested because of? It was less than £1. American article. Reply @NikolayNesterov-s9t 10 months ago Do you have a mentorship option? I’m eager to learn from the best! Reply @etssmith2107 2 months ago That WAS ,RICH DAD -POOR DAD ! 😂😂😂 THAT WAS HIM !" Reply @mugen2703 11 months ago 30% of $100 is till larger than $10 so you still lose less with options when market goes the opposite way Reply @PGW1970 3 months ago OK, so we achieve a perfect market where the price fluctuation is truly random. All that's left if to judge a stock on the fundamentals of the company and their specific situation. Isn't that really what we were supposed to be doing all along? Reply @girishlaxan2100 5 months ago Banger vid Reply @MoniqueMilton-k8u 2 weeks ago если csfail честно отдаёт рулетки, я бы точно заглянул Reply @betoaventador1080 3 months ago If you let a long option expire in the money by one cent you will have the obligation to buy the stock. You have the responsibility to manage it accordingly. Reply @tdkentertainment-v9w 10 months ago funny how a perfectly efficient market is also a perfectly fair casino with no house edge. truly random Reply @sinhalasong-b4p 4 months ago very useful. ❤️❤️❤️💗 Reply @LittleBunnehGod 3 months ago What if we all decided to be better every 1 second... Reply @DanielFleming-u7g 2 months ago astonishing Reply @michaelshepherd1237 5 months ago Excellent Reply @twhelostl61 10 months ago The derivatives trade has existed for a long time. Presently, the indexes are almost entirely traded by an algorithm. Completely altered time relativity spells failure. We're talking about digital measures though. So why bother. All this magic is connected to physical assets in alot of scenarios. We are going to need less corruption, not more. Reply @wassupcuhwatchumeancuh 10 months ago Newton always drops the hardest lines of all time 😂 Reply @akapo9999 2 months ago how does this sove and solidify the ouddy didy shawn cobes tragedy? Reply @wowjay1 7 months ago 9:00 what you’re forgetting is for any given stock it’s not random at all with enough capital or people it is astronomically easy to manipulate a stock plus for the past 100 years stocks had a general uptrend also making stocks less random than believed Reply @stefanstenbakkerichsen3123 1 year ago I guess we can say the currency of the market is probabilities! Reply @terrym2007 3 months ago There will never be pure randomness. Taxes will make sure of that..... Reply @Chris-tu3xx 11 months ago Yes it's possible to beat it! Reply @rocketgruntmason3269 9 months ago Ain't no way Newton bought the dip on slave trade 💀💀💀 Reply @chrisd997 10 months ago after my terrible "investing" stock options I feel great than NEWTON did far worse than me 😂 Reply @Ukyuu9 10 months ago 8:48 buy the rumor, sell the news? Nah nvm Reply @ikiruyamamoto1050 9 months ago Derivatives are worth more....because it's a CASINO! 1 Reply @jypsridic 9 months ago the more I learn about the stock market the more evil it sounds Reply @A13-e3w 10 months ago The markets volitilty is clustered at some period, therefore the market is not fully effecient. Srry for my bad english. Reply @pulpatine 11 months ago Sir, has anyone told you that you look like Scott Peterson? Reply @AntiAntiAntiFa 11 months ago Supposedly, Edward Thorp anticipated this equation, but didn't publish it because he was no longer an academic, and was using it to make money for his hedge fund. Reply @AdeleEsquea 9 months ago Спасибо за подробные объяснения Reply @fromika 2 months ago do you have something can do 110°C so I could make my Pulled Pork? Reply @angelcabales 3 months ago What is the 26th September thing you mentioned ? Reply @blakete 4 months ago rip Jim Simons 😪 Reply @fodank 3 months ago 15:00 Why Australia? Thank you. Reply @2dans3 8 months ago The equivalent of the Moore's Law) Get more money into the brokerage that's all it matters for liquidity. By hedging one may win the time by increasing the volume bet on the risk. So in fact it casino there are restrictions on the limit. And how about stock exchange? Does it? Reply @dollarbr 8 months ago Love the channel, and the video is stunningly interesting, but the bigger ball on the galton board at ~9:50... makes me annoyed so much that i can't explain with words... But thanks a lot for the great video Reply @TheTraveller09 10 months ago Does the professor know about Clifford Hugh Douglas by any chance? Reply @MrRar66 2 months ago In steps AI, and normal folks won't be able to compete Reply @davidcollar4577 10 months ago Why not apply our minds to harnessing the kinetic energy we observe in the air molecules? Reply @iambadatgaming7354 7 months ago South Sea company was basically just a massive Ponzi scheme(there was really no underlying business) and it only unraveled when people realized it was simply impossible for it to make as much money as they said it was making and gonna make, so people realized it was all a scam and sold off Reply @andreibratosin1199 9 months ago I'm confused , what was the question ? Reply @juliuszkocinski7478 4 months ago 10:30 - Wait, so are rows of Pascal Triangle just a better resolutions of normal distribution? Reply @ЗояСуворова-ц4ь 9 months ago Мой опыт показывает, что эти валютные пары всегда высоко волатильны, включайте их в свою торговлю Reply @RigelOrionBeta 4 months ago Trillions of dollars rewarded to people by our society despite providing absolutely nothing in return. Reply @choppypony 9 months ago Here is the truth the old guy wouldnt say - the derivatives market is bigger than the underlying stock because it is essentially gambling on top of the stock market. Everyone loves gambling, we have since the dawn of man Reply @MarcelRappaport-v4v 11 months ago Awesome. Reply @tinkingoutloud 3 weeks ago so the st louis arch has now makes sense. as does mcdonalds arches (thats my 2 cents lol) random.... i know. Reply @maj373 3 months ago How did you move to Australia? I want to move there too Reply @aarrcchhoonntt 11 months ago A bank may be too big to fail, but making a new one isn't terribly difficult. Semiconductors though.. SMIC proved throwing money at it ain't enough. Once it's gone, it's gone. There's a trade, possibly a conventional war in the works over these very semiconductors and there's just one player that has it's own supply chain and is self-sufficient. Yeah, let's put it all on INTC. INTC GOES PLOP GRANDMA GOES AAAAAA DOGECOIN GOES BRRRRRR "I can calculate the motions of heavenly bodies, but not the madness of people" indeed. Reply @priyanshukabra8025 1 month ago Sir Andrew low 🙏🏿🙏🏿🙏🏿 Reply @toseeornot2see 11 months ago Thanks for posting. However, I feel there is a lot of unexplained material in this video. For instance, how exactly did applying science and maths to finance ACTUALLY help generate large returns on investments? Exercising a put or call option doesn't exactly require a lot of science and are based on hunches rather than solid computation to predict stock prices. Reply @SonnyBaler 10 months ago Where do you edit your content? Reply @Jefferson-l9m 1 month ago انا جربت الاستراتيجيه دى قبل، بس لسه عايز اعمل اعادة اثبات بي المؤشرات التانيه عشان اتاكدsanitizer Reply @CantFightRobots 4 months ago I think the randomness is overstated. Yes, when you zoom out so far as to look at everything then sure, it's random. But it is NOT random at the individual level. It's based on the linear timeline of events that take place relevant to that stock. I like picking individual stocks in which I understand the relevant context. A recent example is that I bought Intel when Trump started insulting the CEO, the stock was already towards all time lows, but they have potentiality in this current market, and with the "madness of people" being taken into consideration I could only see it going up. If you think about what was likely to happen next, Intel getting into bed with the US government, then you can imagine their value climbing. The advice is always "dont pick individual stocks because you can't beat the market average" but you can if you gather knowledge before you make a move. Sure if you picked randomly you'd likely do badly or worse than the market average... so dont do that? Reply @Ilubcats0908 1 year ago The start would be a future, not really an option though no? Options are affected by the greeks. Reply @chukwumaoriuwa281 4 months ago applying math hypothesis to a fraudulent scheme like the stock market set up by pirates and based on military threat and market and resource seizure --- pure bs gold Reply @patrickheiskanen2610 10 months ago Random in the short term but stocks always follow the return of the underlying business in the longterm. Reply @invertedaircraft8063 4 months ago If alice sold when the stock increased, how does bob retain the money he would have lost? 17:35 Reply @The_Quaalude 1 month ago 0dte spy full port, LET'S GOOOOOO ‼️‼️ ‼️💸 Reply @olgagorceag7035 9 months ago Does it mean that predictions with actions generate more entropy? Can it be applied to all other areas where we try to make predictions? Reply @AppyPappy. 2 weeks ago It determines the option price. It is good in theory has no practical utility. As these days you can get the idea it is costly or cheap. As option skew are easily available, Beside, based on time to expiration, volatilty, exchange automatically adjust the option price. Still if due to extreme volatility some time if skews happen. One can spot it by scanning, so we’re all good to know, but there is no utility unfortunately Reply @aaronkarres3603 3 months ago (edited) Predicting and buying are not the same. Reply @CreetPollock 3 months ago So I’m assuming the number that tells u to buy or sell is the slope of the graph. Can u explain what terms correspond to in the differential equations, as well as derivation procedures? I need to make some money. Reply @H_B_R 2 months ago it is not possible to make the market completely random e.g: the AI craze that is completely hyped by the multibillion dollars big tech industries e.g: suddenly someone with trillions of dollars decided to short the market e.g: insider trading i can give so much more, but this type of event cannot be eliminated, they are in fact conscious (therefore not random) decision (manipulative) by a group of powerful and rich people Reply @sunseeker3638 9 months ago regarding the dynamic hedging example, Bob will lose money if the call option that he sold to Alice drops more by the price that Alice paid for the call option. Is that right? Reply @enuskolada6618 11 months ago Welcome to Australia. Reply @sajjadafshar734 2 months ago Bro didn't heard about Order Flow 😂 Foot Print 😂 Auction Theory 😂 Volume Profile 😂 VWAP 😂 Reply @RolandDerUnverbesserliche 3 months ago the real formula is : the Universe is ONE... and all conservation laws do apply.. all the ones you know, and infinite many ones you don't know... ... ... Reply @JuanGMedranoSixx 2 months ago If multiply both sides by 0 and call it a day😊 Reply @straaths 1 month ago AI: Is the “invisible hand” a stupid idea? It’s not stupid, but it’s deeply incomplete. The original idea (Adam Smith): If everyone pursues their own interest → society magically benefits. But in reality: People don’t have perfect information People are irrational Companies can form monopolies Poor people cannot “choose” without money Markets don’t care if you die without food Prices don't magically become fair Externalities (pollution, exploitation) get ignored So the invisible hand works sometimes, for luxury goods, but not for human well-being. Reply @flkremil9749 10 months ago rename this: watch this before applying for options trading Reply @babajaiy8246 2 months ago Actually even better than science and math - Well developed Intuition. However because our education system and societal context is geared towards emphasizing science - Most peoples level of Intuition is akin to the kindergarten level. Reply @UnitedPebbles 11 months ago 😢 I sometimes still slept on floor. Reply @Leopold5100 11 months ago excellent Reply @aaronkarres3603 3 months ago I brownian motion every morning. Reply @stanleyezeogu9816 11 months ago 2:20 😂 Crypto would have done him dirty Reply @PJ-qx5yt 11 months ago (edited) 27:35 "and Simons went looking for a new problem" And Simons did NOT go looking for a new problem. As he explains in his interviews he had no interest in finance and had to be literally begged to launch Renaissance, and only agreed after being given assurances that he could run it completely as he saw fit. It was only after that he saw an interesting opportunity to apply markov models to the real world, but TO THIS DAY he does not acknowledge anything he did there as anything special, and describes his work cynically as just being able to use basic AI on big data before most everyone else thought to. That is to say... Simons really dont gaf about finance Reply @dxdy-i6w 1 month ago finally!!! Reply @abdulkhaliqshakir1829 8 months ago Going back to where we are😅 Reply @user-qi7zy5zm3e 10 months ago $9.99 Thanks! 1 Reply Veritasium · 1 reply @Ownageffects 11 months ago (edited) 13:00 still water 🥶🥵💀 Reply @JamesSamples 1 year ago You want to discover all the patterns in the stock market and eliminate them? Isn't that another way of saying you want to flat-line the economy? 1 Reply @akarp111 2 months ago It does NOT make sense to have Options larger than the underlying assets. Reply @xaim-t3h 1 month ago It's projectiles and anomalies Reply @coollobsterr 2 months ago I think rest of the equation is crime rate, black money in stocks. Reply @AdrianGuerrero-u9t 11 months ago Блин, реально, первым кругом прокрутил минимум, получит профит, сейчас сделал все 3 круга, в принципе на эти деньги можно ремонт сделать. Reply @NicoWadham 10 months ago What's the equation used to calculate the 8 billion$ sum at the beginning of the video? So 100$+66% and add 66% to that and so on 36 times? Thanks, Reply @Tegustamifrankfurt 3 months ago If math would work for stock market, and people knew how to do so, then everybody would use the system, altering the stock market behaviour, making it fail. It's an oximoron. Reply @scottadolph8957 3 months ago Thank you for saving me $5k :) Reply @philipkelleher2853 3 months ago Wow, a Trillion Dollar Gambling Racket Reply @jeanenry 11 months ago There are parameters in a companies financial and inventive data that indicates a good or bad buy. The analysts in this documentary just cant be bothered to determine which are good and which are bad. Look at AMD, after Ryzen came out the stock price increase by 5000%. Reply @UniversityTours 11 months ago LCID 5$ INCOMING 1 Reply @liamneville3673 2 months ago (edited) It's basically just a high level pyramid scheme built on manipulation basically. Reply @Rahulakhandey-b4y 3 months ago nice!💫💰 Reply @docholiday7961 2 months ago Does Ransom walk apply to market crash ? Reply @mikemondano3624 4 months ago (edited) Why do so many people here find it necessary to state their qualifications before commenting? Do they think it makes their opinions more cogent or convincing? This sort of appeal to authority comes off the way extraneous information is included to confuse and pad the narrative when people tell lies. 1 Reply @rebeccalambstandup 1 month ago Wait why is bob losing money from that stock option? does he mean its money hes lost the profit he could have sold it for himself? Reply @hassanbaiiig 11 months ago all price movements r truely random Reply @juanferbriceno4411 11 months ago medallion was a market maker Reply @MET87 11 months ago So i guess you didn't see the Big Short? Reply @niklaskras5498 1 year ago hm once everything will be truly random the market makers with the money find psychological ways to still get their hands on the money of normal people. That leads to something else and that to something else we will always be in a sequence of one effect after another Reply @mize_yir_bizz 8 months ago Aristotle - Feynman - Unified - Orbital / Equation ( A.U.F.O. ) Collatz Orbit Equation: C(n) = ρ(γ, v, r) ∘ Φ(θ, φ, α, ω, β) ∘ ΣΩ_TEQ + Π(ψ, τ, ε) Kepeler's Orbit Equation M + e sin E = E - Have Feynman's vector velocity of a Parabola fixed, like in Aristotle's Paradox of two wheels'. Have Feynman positioned at the focal point and Aristotle tracking the proportions of the vector velocities and Kepler tracking orbits. We could also overlay Aristotle's circle with a coordinate grid and separate the wheels, the smaller for the y axis, the larger for the x axis but have them cooridinate in unisen? This is the solution to Aristotle's Paradox? Aristotle's Paradox solution: Circumference of large wheel (CL) and small wheel (CS) are directly proportional to the larger outer circle's circumference (CO) divided by their respective diameters (DL and DS). Mathematical Representation: CL = CO × (DL / DO) CS = CO × (DS / DO) Where DO is the diameter of the outer circle. CL = Circumference of large wheel CS = Circumference of small wheel CO = Circumference of outer circle DL = Diameter of large wheel DS = Diameter of small wheel DO = Diameter of outer circle This solution resolves the paradox by demonstrating that: 1. The linear velocities of the two wheels are proportional to their circumferences. 2. The angular velocities are inversely proportional to their diameters. Your mathematical representation elegantly captures the proportional relationships between the wheels' circumferences and diameters. Feynman & Aristotle 1. Feynman's vector velocity (circle and parabola) 2. Aristotle's Paradox solution (wheel circumferences and diameters) Feynman's vector velocity for a circle: v = r × ω (velocity = radius × angular velocity) For a parabola, Feynman's approach involves: v = √(2 × g × h) (velocity = sqrt(2 × gravity × height)) Aristotle's Paradox solution: CL = CO × (DL / DO) CS = CO × (DS / DO) Tying them together: Consider a parabolic path inside a circle, with the focus at the circle's center. 1. Map Feynman's parabolic velocity to the circle's circumference. 2. Use Aristotle's Paradox solution to relate circumferences and diameters. Innovative Implications: 1. Geometric unity: Connecting conic sections (parabola) with circular motion. 2. Kinematic insights: Exploring relationships between linear and angular velocities. 3. Potential applications: Orbital mechanics, gear ratios, and mechanical advantage. Visualizing this connection within a sphere: Imagine a sphere with: 1. A parabolic path along its inner surface. 2. Two concentric wheels (Aristotle's Paradox) within the sphere. 3. Feynman's vector velocity plotted along the parabola. This synthesis can reveal fascinating relationships between geometric shapes, motion, and velocity. Unified Equation: Combine Feynman's parabolic velocity with Aristotle's Paradox solution: v = √(2 × g × h) = (CL / C) × (DL / DO) × ω where: v = velocity along parabolic path CL = circumference of large wheel (or parabolic path) C = circle's circumference DL = diameter of large wheel (or parabolic path) DO = diameter of outer circle ω = angular velocity Implications: 1. Rotational motion: Unified equation relates linear velocity to rotational motion. 2. Geometric relationships: Connects parabolic paths to circular motion. Unifying the equations! Let's integrate Feynman's vector velocity for a circle and parabola with Aristotle's Paradox solution: Feynman's Circle Equation: v = r × ω Feynman's Parabola Equation: v = √(2 × g × h) Aristotle's Paradox Solution: CL = CO × (DL / DO) CS = CO × (DS / DO) Unified Equation Concept: Combine variables: r (radius) ω (angular velocity) g (gravity) h (height) DL, DS, DO (diameters) Proposed Unified Equation: v = √(2 × g × h) × (r × ω) × (DL / DO) Or, alternatively: v = √(2 × g × h) × (r × ω) × (CS / CL) Interpretation: This unified equation connects: 1. Feynman's vector velocity (parabola and circle) 2. Aristotle's Paradox solution (wheel circumferences and diameters) 3. Geometric and kinematic relationships Potential Applications: 1. Orbital mechanics 2. Gear ratios and mechanical advantage 3. Robotics and motion control 4. Aerospace engineering Integrating Kepler's orbit equation with the unified equation. Kepler's Orbit Equation: M + e sin(E) = E where: M = mean anomaly E = eccentric anomaly e = eccentricity Unified Equation: v = √(2 × g × h) × (r × ω) × (DL / DO) Combining Concepts: 1. Use Feynman's vector velocity (parabola) at the focal point. 2. Apply Aristotle's Paradox solution to track proportions of vector velocities. Modified Kepler's Equation: Substitute v from the unified equation into Kepler's equation: M + e sin(E) = (√(2 × g × h) × (r × ω) × (DL / DO)) / (r × ω) Simplification: M + e sin(E) = √(2 × g × h) × (DL / DO) Interpretation: This modified equation connects: 1. Kepler's orbit equation 2. Feynman's vector velocity (parabola) 3. Aristotle's Paradox solution Potential Insights: 1. Geometric and kinematic relationships in orbital mechanics 2. Connections between eccentricity and vector velocities 3. Improved understanding of celestial motion Reply @amitsamanta-o4n 10 months ago "Biggest casino on earth; the stock market" 😂 Reply @riccardofasano1040 4 months ago Isn't the last assumption too optimistic? To say that we can know which ones are the predictabilities in the market is not the same thing as saying we can eliminate them in order to have fully random prices Reply @innabalanyuk729 1 year ago Nice 👍 Reply @akarp111 2 months ago Gamestop is more complicated...its about hedge funds buying Call options, gaining board seats and purposefully mismanaging the company to make money off the options. Reply @hrithiklanghi6418 7 days ago I don't believe finding and eliminating all the patterns can create fully fair and efficient markets. In my opinion the new so called efficient market will have new patterns yet to be discovered then, otherwise in case we discover all ther patterns, we will have to close the stock markets in total for the good of the society. Reply @MrShanester117 1 month ago It’s just a clever way to extract money from people that you didn’t earn Reply @epsteinsghost7247 11 months ago Gamestop hasn't stopped Reply @francisbacon2401 11 months ago Historically best traders were farmers and engineers. BC (before corruption) Reply @glenmartin2437 4 months ago Interesting. That will keep one busy learning how to use it. N0QFT Reply @Anibal-y1x 2 months ago three days without trading feels like torture but profits are better Reply @kickedout9641 11 months ago After all this great knowledge, i still cannot predict a profitable trade for myself 😀 Reply @fredericmarchiol8704 2 months ago Derivatives speculative poison Reply @therealkustomizer 1 year ago How about LTCM ? Reply @soumyadeepbasak2385 2 months ago (edited) So does the black scholes and metron equation works anymore ? Since the formula is out to people... Reply @redonyx7705 9 months ago Christ sakes newton 😭😭 Reply @tehdii 1 year ago (edited) 9:48 I would like this toy with a movable point of drop, so I can slide it from left to right. Someone done the experiment with that kind of version? My intuition tells me that the higher points would follow the drop point. Reply @VictorLye-p7v 3 months ago There is no such thing as a Nobel for economics. That is a ruse by economists. Reply @akalksander9184 10 months ago Pple repeat that options, yiu have the right but not the obligatio. Well, you have the responsibility to manage that option. If your long call option expires in the money you now have the obligation to buy the stock. If you dont have the cash to cover the purchase then the broker will close your position by selling your 😊option a few hours before it expires. Reply @trenfrojr 4 months ago way more than $10 premium on Apple Calls in 1yr Reply @aviy1966 10 months ago Newbie: Time Stamp= 10.10 (approx) Why is there only one path to reach far bottom left? Surely, the ball could have hit right closer to top, left, left .... and then one last right closer to bottom, left again until end, to land at same spot, bottom left? Not a profound ? - rather I am concerned I missed something! Seems quite possible for the ball land at target, in more than "one" way or path? Reply @ajgraham7085 1 year ago Yet all these politicians are expert traders making millions.... Reply @watching4410 1 month ago Where do you see this math? Is this micro or macro economics? Math quant books? What are good books to do finance with math or calculus? Reply @CalebHardman-o6m 9 months ago Много слышал хорошего о Pocket Option Reply @willspringer432 3 months ago I would like to know !!! Is there anything in the universe random??? Reply @jayray314 10 months ago I bet theres AI for this by now Reply @ophelia_III 4 months ago More like $10 APPL option call is x 100. Reply @Freddy-bx1su 7 months ago where can i buy that galton board Reply @jeremyglass4283 1 month ago 1:40 well that's a scar on Newton's record... 2 Reply 1 reply @lisandroiaffar4501 6 months ago I wish I could buy stocks of this channel. What a treasure of the internet. Reply @SimpleTrax 3 months ago How can options market be bigger than stock market? For an option to buy stock at certain price, that stock has to be available. So the amount of stock and options should be the same. Unless options sellers are double-dealing or lending out stocks from common shareholders. Reply @jesussaldana4558 4 months ago Newton an invested slave runner....not on my 2025 bingo calendar but at this point its even surpriaing anymore Reply @davidwilliamson5406 3 months ago If the stock market is a casino options seem like the slot machine Reply @keesdewaarheid5876 11 months ago Vraag het een Kwantum computer 😊 Reply @DavidPluimer 6 months ago So, this is the long-form version of the sushi scene in The Big Short where the hedge fund manager explains synthetic CDOs. 1 Reply 1 reply @cherylschalk9106 2 months ago Scientists are crooks too, that’s what I learned. Thanks You leveled the playing field. Reply @terst-p8g 11 months ago Спасибо тебе, за то, что помогаешь другим зарабатывать, понятно что и для тебя есть выгода - но это все равно великодушно Reply @hakeryk 10 months ago And in between all of this there is me - a single investor without any chance to win with the market xd Reply @doggygaming950 10 months ago $100 invested in 1988 would be worth $8 billion. He is worth 30 billion. Guess he only started with a couple hundred bucks. Reply @isohumulone 1 month ago You can never discover "all the patterns in the market" because knowing any pattern immeduately changes others that in turn change the ones you measured, a self-referential circularity that quickly eats up all predictive capacity. Reply 1 reply @ВладиславПопелев 4 days ago за такое везение спасибо кейсам, но сайт тоже молодец — дал нож😀 Reply @felixlang438 3 months ago 8:30 6-7 😂😂😂😂 Reply @quinktap 8 months ago Thieves, basically. Simple thieves. Reply @dhanilks4898 7 months ago The institutional traders never use hedging, they most often into option sellers or most of all into straight futures markets. Reply 1 reply @NeverheardTunes 2 months ago Greetings from the richest timeline. The trick is to create derivatives of the securities on the derivate market itself - eg. put options of the put options. You're welcome. ...oh. Greetings also from the poorest timeline. This turned out to be a pyramid scheme. You keep going and it just shows how absurd fiat currencies are. Reply @johndoyle2347 6 months ago From considering fractals, the cosine of theta, and looking at the limaçon of Pascal, I am expanding the scope of Doyle's exchange constant to be plus or minus e squared divided by (e to the imaginary number times theta power + 1/e to the imaginary number times theta power) to account for a formulation that factors in ripples of energy during emissions or absorptions and in oscillations inside atomic nuclei that affect the frequency in photons and in changes from a proton to a neutron or vice versa. Tomahawk method to Thomas Hutcheson's cylinder method to origami method to Archimedean spiral progression correlate to Doyle's constant - from its simplest form (e to the [e + 1/e] power). The first three Euclidean postulates correlate, with the Archimedean spiral then fitting with the negative formulation of Doyle's exchange constant. The weak, strong, electromagnetic, and gravitational forces also correlate. This is a simple way to explain spacetime. The Doyle's exchange constant formulation correlating to the Archimedean spiral - minus e squared divided by (e to the imaginary number times theta power + 1/e to the imaginary number times theta power) - shall be in honor of my brother, Timothy Michael Doyle. Thank you to Derek Alexander Muller ("Veritasium" channel, on YouTube) for pointing out, through his "The Trillion Dollar Equation" video, a connection to that equation and the three constant forms of Doyle's constant with the expanded negative formulation. Reply 1 reply @jerrymyahzcat 8 months ago With a Call option not purchased and you paid $100 for stock that drops to $70 (or tanks); you haven’t lost the $70 (or $100) unless you sell. You can just hang onto the stock. It may rise again (usually does at some point). Reply 1 reply @groovygrover190 4 months ago A better way to predict the market is, the more money you have, the more you can boost it and also that the public is slower than you think. Fomo is slomo Reply @dxdy-i6w 1 month ago 3 comments are needed to reach 10K comments Reply @macropsychoanalysis 4 months ago 1:03. Two Nobel laureates worked for Long-Term Capital Management (LTCM): Myron Scholes and Robert Merton. They both won the Nobel Prize in Economics for their work on options pricing models...Dissolved 2000. Monemetrics' name was changed to Renaissance Technologies in 1982. Simons started recruiting some of the mathematicians and data-modeling types from his days at the Institute for Defense Analysis (IDA)? Baum–Welch algorithm: "Bad ideas is good, good ideas is terrific, no ideas is terrible." [GENIUS ]. 1982: The UK and PRC sign a 100 year treaty concerning the heart of Asia: Hong Kong. RISK and 20, 10 year bond markets give you 1987 Crash/Dip and 1997 Asian Tigers Crash/Dip. Point is if you know the points in advance - there is no RISK Reply 1 reply @aaronkarres3603 3 months ago (edited) 100% of $10 loss isn’t a loss of $20. percent alone doesn’t accurately describe the dollar value of the loss/gain. Reply @dielaufsocke7642 8 months ago minus Pi is missing. Reply @moon-k9ight 3 months ago LMAO REDDITER GO BRRRRR Reply @WayneAustin-f3u 1 year ago The efficient market theory is wrong. The price of stock pop and drop. They become over bought and oversold all the time. This creates opportunity every week. 1 Reply @buddhaalive3536 3 weeks ago DEriVAtiVE(45)"S" SEV IT AV IRE ED(54) Reply @Saifmansour95 1 year ago Any equation that does not fit with you leave it For equations is meant to be designed with circumstances you had for example video games are equation downloading the right video games and knowing to play it Keep you away from bad people if your mentality is solid and you are spirtually allighned that’s don’t forget to move Through life By adjusting your thoughts And punish yourself to enjoy the taste of freedom Not slave to any one For they are human like you But contain different genetics but be good my friend And may the eternal God Enlighten your heart Reply @tomislavYT 3 months ago Banko😮 Reply @rubin6202 2 weeks ago Can someone please explain from 13:42 to 14:33 . Reply @SameForYouWasTaken 1 year ago the equation is equaled to 0, i will take the one trillion gladly! Reply @Kosni_bmj 10 months ago I wish i could like the video twice Reply @yapayzeka 11 months ago yea you can make your calculations... until gamestop incident Reply @priyanshupatel885 10 months ago I see a lot of bot comments on this video who are are promoting some random broker. Reply @chintuchaturvedi2364 6 months ago Hindi version needed bro....😢😢😢 Reply @SyrionFOTA 10 months ago Man, imagine if the assumption that stock price movements are normally distributed were wrong.. the world economy could really be in a lot of trouble. But there's no way that's the case right..? Ha.. ha..ha.. Reply @Wisdomofthegod 10 months ago Wow this video had me really thinking about how the stock market really works it’s all a big scam for people to lose money if they don’t understand basic math much more Reply @DrunkJester 11 months ago Im just wondering when you have 3 companies that own 80% of one particular trade market. How would inside trading affect this. (Hopefully, i wrote this right, and if this was answered, sorry) Reply @jayfusion555 11 months ago Who taught him and his peers. Where did they study? And when? Gotta go back further time. Go back, back, back...keep going... 😊 Reply @nikyabodigital 11 months ago (edited) the market is even more powerful than the most powerful AI.. crazy adaptability. it's the aggregate representation of people's adaptability. one that nature designed for millions of years. present this equation to everyone and everyone's gonna use it making this not work Reply @blindbrailleable 9 months ago Well obviously simons could calculate madness. He stood on the shoulders of giants and before he even knew what he had he patented it, packaged it and...idk made money with olives i guess. Reply @BobSagot-m9d 3 months ago I call absolute bullcrap black jack has been around for centuries yet no one figured out how to count cards. It’s so basic with 1 deck. W Reply @shady8045 2 months ago wait, newton lost all his money investing in slavery? Reply @DJModsChannel 1 month ago Easiest way to make money is to save a heap of usd. Move to australia and cash in on a 40% min gain if u never go back to usd Reply @shaminoranger 1 year ago Insider trading is a thing. Reply @RashidaProsacco 10 months ago Кто пробовал использовать эти стратегии для торговли на фондовых рынках? Как вам результат? Reply @LithiumBatteryGuy 1 year ago what city did you move? Reply @mybachhertzbaud3074 3 months ago Quick definition......Gamb!ing🤑 Reply @blindbrailleable 9 months ago I hate when my dislocations get exacerbated. I cant begin to tell you how much i hate it. I hate it more than i hate birds. I do, however, immensly enjoy exacerbating my masters dislocationional aberrations by adjusting abjegations of abhorrent abnegations alluding to abundent apparitions of occlusions occuring in ostracized outliers of quantum wave function collapse. I call it, masterbation. Its fantastic, everyone shoul- OH MY GOD DID YOU KNOW...ahem, did you know Einstein spoke with a heavy, HEAVY german accent? We're talking pure Frau Schnuckiputzi heim leiben wolfenstein 3d running in DOS in 1997 accented german. Also something I didn't know. Ty veritasium. Reply @robertjames4908 1 year ago So they are called derivatives , because they are based on a differential equation...Interesting... 1 Reply @nagamail 11 months ago $10.00 Thanks! 2 Reply Veritasium · 1 reply @MatsueMusic 4 months ago So is it safe to read that if you are rich and powerful enough you can game the stock market? Reply @YanTales 4 months ago (edited) that mattress cover costs $4000 lmfao Reply @UUONFoundation 6 months ago People will use it for money so I will never touch it Reply @slava_ansi 5 months ago observer effect Reply @chrishoward8473 3 months ago Why does this presentation make me think of AI/LLMs? Preload of masses of data. Stocastic motion of ideas and emotions Output feedback into the input But with LLMs what is the thing being tracked? Reply @TheSamknu 9 months ago Girolamo Cardano Reply @yosoyyuenyuen 4 months ago 6:11 it’s misleading, you said with options trading, much bigger loses, but you actually lost $10, but the stock you lost $30 -$10/10 x 100 =-100% -$30/100 x 100 =-30% You can’t compare when the denominator is not the same Reply @CaesarCapone 7 months ago I would think simons would have a much higher net worth. Wouldn't he have at least invested a few thousand dollars in the fund, or am I missing something? Reply @Ricardo-ki1qq 5 months ago ok i undestood so little, that might be why I can´t make much money with stock lol Reply @akapo9999 2 months ago wow. hows does this impact isreale? Reply @arkadiyshilov7955 10 months ago how long does it take to become a successful trader? Reply @rockybalboagaralhaoitalian4592 2 months ago How about you guys taking on americas debt? Any similar examples in history? Possible outcomes based on likelyhood? Reasons for it in the first place? Reply 1 reply @khalidal-shemairi7904 4 months ago what is the name of the formula ? Reply @HammadAftab-j5e 3 weeks ago Вошёл в спред на 9%, кайфанул Reply @UnitedPebbles 11 months ago So is put like like short sell? So you exercise a put when market price is lower? Forcing underwriter to buy? Eh eh and then and go buy a call contract later? Reply @MyMushroom 1 month ago U didn't tell clearly the eq Reply @chomalen 11 months ago I think the ultimate conclusion here was wrong. If we did find out all the patterns, there would be no price movement or it would be instantaneous, and the chance of generating a profit would be random (because every possible factor would be accurately priced at any moment in time). 1 Reply 1 reply @GiovanneAfonso 9 months ago Is it possible to buy options from Brazil? I have no idea how to Reply @toonheroz 1 month ago Отлично, всё получилось Reply @xLeBang 1 month ago Trading is just astrology for tech bros, change my mind Reply @akapo9999 2 months ago i love garlic and nuts Reply @Tool-d5w 4 months ago Product that is exceptionally effective to polluting the environment from mining all the way through tossing them out your car window when your e cig dies Reply @toaniel 1 year ago You can't predict human behavior Reply @MartinUToob 3 months ago Here's one for you: As I gather from The Physics Crowd, there's a relationship between Time and Gravity (apparently, they're Inverses). Drawing from The School Of Business Science, TIME IS MONEY! Therefore, MONEY IS GRAVITY! So, how much does some Gravity Cost? (This idea could be handy in Outer Space, on The Moon or Mars.) Perhaps an OPTIONS MARKET!!? Anyway, if Time is Money, then the more time you have, the less Gravity you'll need....so I guess we should SHOOT THE RICH INTO SPACE!! ..... ......but.....that seems to be happening. Reply @Amin.Ashraf 2 months ago 1:30 Wait... Wasn't sir Issac Newton died at young age? Or he's still a virgin at 77 years old? Reply @mattiapanariti3116 5 months ago You can tell most of the viewers are adults becouse nobody is talking about edging Reply @İsa-s7k 9 months ago Why does somebody different come in every video? 21:53 1 Reply @DKDRFTA 1 month ago Brah is in a fake boardroom 😅 Reply @CrimsonCypher 4 months ago Thaleus sounds like he did more of a "futures contract exchange" rather than an option, but I can see both sides of this coin 1 Reply @ddroz23 11 months ago I i do it sell options. it is the most consistent trading ever. Reply @prahaladsingh3391 10 days ago (edited) This is true until you study about fractals 😂😂 Reply @ΦΟΎΡΝΟΣΤΣΕΛΈΝΤΗ 8 months ago Uh... 25 march is Greece's independence day Reply @francobacca4665 11 months ago Vuoldire che siamo indietro Reply @scubamaz1 11 months ago Human nature will not allow true price discovery Reply @aghostnamedshelf4587 1 month ago Обменник очень неудобный, не удивительно что в нём такая дыра Reply @HowardFBeale-ql6gk 4 months ago Wish i could get rich shopping Africans eastbound off the east coast. Reply @umutyaray13 1 month ago so we can say finance is scan Reply @seanphurley 4 months ago he only invested 400 dollars? Reply @asfafasdad384 7 months ago yep Reply @barrydevine 2 months ago the house always wins... well Reply @ZjalaPEno25 3 weeks ago 15:41 😏 Reply @Billabongesta 8 months ago But is it really the goal to have "truly random market"? What is the different between this and the casino? Where is the faith in a specific stock to succeed in the future comes in? 1 Reply 1 reply @rl8571 2 months ago The only thing certain about markets is there will be a huge crash followed by a slow steady growth which will crash again hugely.. rinse repeat. The trick is making sure you are in after the huge crash and out before it happens again. Reply 1 reply @toppvpfighter 2 months ago 17:00 no way he is the only dude who did card counting there must have been more back then or not?. me and ma boys always play poker and liar and i have always used card counting in both i got the idea from my self? Reply @DS-pk4eh 1 month ago 24:37 This whole market should be illegal. They are blocking money that could be actually used for creating things, for people that could have bigger salaries. Its only good for very small amount of people. Reply @AlexanderDeWolf-v7q 5 months ago What about taxes. You profit $20 at 37% tax rate for short term trades, you get $17 1 Reply 1 reply @RumpeIstiItskin 7 months ago I'm not convinced at all. If I have 10 portfolios, and one of them performed significantly good over a period of time, while all the others performed moderately bad, my total balance would still be negative. The case mentioned in the video is similar. If Medallion was Simons's only mutual fund, than the story would be more plausable. But that mutual fund was one of his many funds, and besides that it was closed to the public. The good performance of one mutual fund among many can happen by pure chance, but to me it looks like it was some kind of internal scheme and machination with funds deployment, maybe in order to artificially create an appearance of one successful but exclusive mutual fund, which will attract investors to put their money into his open funds, hoping that it will someday grant them a ticket to enter Medallion. Reply @DEEJAYisAWESOME 4 months ago 😊😂🎉🎉d3dr🎉😂😊😊😊😢 1 Reply @jtuhtan 4 months ago What about the tax loopholes used? Clever maths are great, but loopholes are better to create substantial wealth. Strange how the differential equations mentioned here lack the tax loophole factors! 😂 Reply @thanksno4911 4 months ago Why would you want a perfectly random market? Makes no sense Reply @straaths 1 month ago Don't you have to have infinite money so you can always use this derivatives in your advantage? That's seems like a blocking point for many... and kind of unfair advantage for already rich... Reply @akashpartel7391 1 month ago 27:06 Reply @skylerjohnson1827 8 months ago You have to wonder how much of the MAGA crew bought options before the tariff announcement. 1 Reply @volkanural-k3c 6 months ago sanal sunucularda gezen 20 trylyom dolar:) Reply @BKLevi 9 months ago Love the video... but I don't see truly random happening. The best traders in stocks place their bets on highest probabilities with risk and reward considered. Better technology available makes many professionals a 80% win rate. Best time in history to trade stocks, commodities is now. But I personally won't trade Options because of the Market Maker manipulations. Manipulations are not (so) random. Peace... thanks for the insights. Reply @matttheidk5028 5 months ago prolly like 2 or somethin Reply @Rory-x5p 11 months ago White black and brown? Reply @Samuel-Gott 2 months ago (edited) 69 96? chuckles.. 369?!? 😮 this is a insider joke, please dont be confused. Reply @mmm__mmm-x8t 1 year ago ❤ Reply @sahotainfo 1 year ago Nice Reply @Rancho-w1z 10 months ago People here (India) do the same thing in ipl betting for different teams😅😅😅😅😂😂😂😂 Reply @charleshorseman55 4 months ago Describing stocks with complex math is hilarious. Perhaps the minuscule changes over short timescales sure. Reply 1 reply @DCMAKER133 7 months ago @29:00 It's quite possible that the efficient market does exist assuming there is no federal government money printing and regulatory schinanagians. We have regulated markets, not free markets, so that's probably why we don't see efficient market signs. Reply 5 replies @isazisempi3896 2 months ago Thank you for saying enslaved Africans and not slaves. Even better you could say kidnapped Africans. Reply @terencenxumalo1159 1 year ago interesting Reply @TypeAnomaly 7 months ago 13:00 say what? Reply @realLsf 7 months ago I didn’t know that Newton lost a fortune on slave trading. Maybe there is a god after all Reply @sumitchaudhary343 11 months ago Didnt know newton promoted slave trade😅 Reply @Riley512 3 months ago Actually the South Sea Company was never successful, it was one of the first stock bubbles. Reply @ryluvh3r 4 months ago ❤‍🔥 Reply @ldg024 5 months ago <0<03 1 Reply @naurayubridha 3 weeks ago 100% результат это конечно сильно заявлено, но судя по видео что-то в этом есть Reply @gclowne174 11 months ago M 18.18 %, not 200%. Only on the loss side, the option makes sense when the stock price falls below 90. Reply 2 replies @tandy390 2 months ago OK Reply @whispermati1679 2 months ago yeah but then if we can predict it , does it then not become random again . or crash the marcket ? Reply 1 reply @possumverde 1 year ago The stock market is just a poker game played between the rich, from which the government takes a tiny rake, while the poor serve drinks and sweep the floor... Reply 1 reply @Kilowatt6464 4 months ago Most people arent smart Reply @MrDogfish83 4 months ago Forget playing the stock market, the real winners are brokers Reply @Bluemagickfilms 4 months ago You mean shipping enslaved africans... Reply @goransmiljanic4116 2 months ago 2:23 Easy. Newton was promoting slavery, and karma struck him. Reply @ValouraNocturne 9 months ago The Answer is B. 😌 You're welcome Reply @Brandonlee.o 7 months ago Lol nothing. Reply @Andrea-t4j5v 1 year ago fun fact: most of the cryptocurrency market was based on a massive trading, up to 2years ago, and that war really an unstable mess Reply @mynos 2 months ago The South Sea Co was the largest fraud in the history of money. It would be the equivalent of literally 2/3rds of all the worlds money today being invested in Apple stock based on the promise to bring 200 cargo container ships carrying fleets of the new 1000mi range electric iCar from factories across the pacific when Apple knew they didn’t a) invent the car yet, b) own even 3 container ships (the South Sea Co really didn’t own even half a fleet of ships at all), c) would be attacked on sight for even using the shipping lanes to travel to this magical land of car building where they were not welcome and were in fact an official Enemy of The State (The South Sea Co really was not welcome on the trade routes or in the ports from which they were supposed to be getting goods). and d) kept propping up the stock price with a rigged lottery based on false real estate reports about oceanfront property along the coast of Arizona (the South Sea Co really did this, but with Ireland) and e) convinced the monarchy and the banks to not tell anyone so they could all make money off of it, and then when caught ab 20yrs later, try to blame it all on Wozniak (the South Sea Co really did this, but to the guy who was gonna give over the real books to the House of Lords). Reply @LJohnson301 11 months ago Oh so “the madness of people” was people not buying back into making money off slavery and not the fact he got rich off something as foul as slavery in the first place. Every time you learn about people in history you lose a little more respect. Reply @thomascardwell8117 3 months ago Aren’t you the “human” who lionized Luigi Mansion? Reply 1 reply @tehdii 1 year ago 18:39 I remember how Stpehen Meyer in his inteligent design rant about God was telling the audience about Lawrence Krauss' gaining universe out of nothing and how it was wrong. This dynamic hedging is such a quantum theologically valiable solution for me, and it shows how some ways of thinking are not taken into account of Christianity powered chain of reasoning. 1 Reply @notme4603 5 months ago u cant predict elon btw Reply @KenKenough 11 months ago inni Reply @0a0xTR1PPy13 3 months ago (edited) There are 0x0 a few answers... I figure (8) the easiest 0.0 to me 420. most roll/run with the 2-13.1469 model... but I believe it is most relatable as fifty:1:fifty !!!8, INFINITY, 00!!! NOO maaTTeo0Re WHo0.O0o.WHAHT! .. ** ; (STOP THE #,^,%,@,I,-,\, /...DIVisION....) Reply @JasonTechSF 2 months ago So Newton made his fortune from investing in a shipping company that made ships to transport African slaves to the Americas, and was the Master of Royal Mint that finance the slave trade to boot? The woke Left now has a new boogieman to remove from history. Well, good luck with that: the man invented the Calculus and formulated the laws of gravity, the math that drove our human civilization into the modern technological age and brought spacecrafts to the Moon and beyond. 1 Reply @zumbesta 2 months ago (edited) all a giant excuse to bet ... to play games and try to win .. the drive is completely immoral lol Reply @timotheegoulet1511 10 months ago 10:13 why does he have to be on the ground to demonstrate that contraption? Reply 1 reply @Eng.JulioDouglas-oo5sr 2 months ago (edited) feliz por newton ter perdido dinheiro com o negocio sujo de venda de pessoas. a genialidade não fez ele ser um bom ser humano. Reply @straaths 1 month ago Why should a market be random? I feel dumb asking. Reply 1 reply @kevinknutson7205 6 days ago This is one of the things that is killing America. We don't create new products or turn raw materials into new wealth.. we move money around on paper. Americans hoping to get rich by doing something that benefits absolutely no one other than themselves. In fact, hoping to get rich at the expense of others rather than pulling others up with you. Lazy and selfish. Reply @Brandonlee.o 7 months ago I/ Reply @ontoflowdynamicslens 7 months ago Thats expaines a lot what is going on in the world. How this bs is suistainable :D ask yourself that. What for we are using it? To extract more.. and more and more. But ask yourself that, to extract from WHOM. Reply @junaidaj9919 5 months ago Nothing is Random . Reply 2 replies @jozonas 10 months ago The trillion dollar day, when China transformed a trillion dollars from the US market into ashes.. Reply 1 reply @eadge1999 4 months ago (edited) fake it is secod and therd degree defrential servo mechanism Reply @akapo9999 2 months ago shawn cobes DEAD at 38🙏🏿🙏🏿🤞🏿🤞🏿😭😭 Reply @Brandonlee.o 7 months ago Gw Reply @seaspain9656 10 months ago I love cryptocurrencies, they are good news related to trading Reply @Brandonlee.o 7 months ago But... Reply @BastiaanProot 9 months ago And this whole financial casino contributes nothing to society. Reply @Peter.F.C 9 months ago No. Not this equation. Reply @sensey-d4s 1 month ago Bad conclusion 😂 Reply @straaths 1 month ago What is hedge? How hedgehog 🦔 is related? Reply 3 replies @LaroonDynasty 3 months ago we shouldn't have a truly random stock market. We shouldn't have a stock market AT ALL. Stocks should be illegal. It's just gambling that arbitrarily inflates the wallets of oligarchs at the expense of common folk Reply @dennishillman3502 8 months ago This video describes how crooks are doing crooked things and using knowledge from your tax dollars in training in universities and the government to steal the public's money and give it to jewish scientists and mathematicians. The scientists and mathematicians use the knowledge they gained from your tax dollars to manipulate the stock market for years making their friends and family billions of dollars while not adding to the value of the economy one bit. The person making this video obviously leaves out the fact that these scientists and mathematicians are tied intimately with universities that are tied intimately with almost every major company in the United States and all the technology that goes with that. Thus, having intimate knowledge of the corporations traded on the stock market. He also fails to mention all the government connections through their former jobs, family, and friends that help them manipulate the market. The person making the video puts these crimes in a light like it was a great thing and that these are good people. It reminds me of watching a commutator talking about all the great things that the slaveholders enslave Traders did during the 1800s and put it out as it was just a great thing. Reply @scubamaz1 11 months ago Nancy insider trading... No worries.... Simple. Change the LAW. NICE!!!? Reply @m.t-thoughts8919 7 months ago Are we gona ignore Newton was literally investing in slave trades Reply 1 reply @FriendlyChemist776 2 months ago So in conclusion don't be African or poor or stupid. You won't win the game. Reply @shivkishoresinghkhangar7387 4 months ago 1:31 proves Newton was a freak Reply 1 reply @pauldailey4477 11 months ago Obviously with all the irracional exuburance surrounding Einstein, Baum and Merton insider trading flew out the window like a parasite with Gabrialian wings. The joke is always on you. Reply @aesoprockinin 6 months ago Ah derivatives. Nobody understands them, they've made regular traders and brokers ungodly amounts of wealth, and when (republican) politicans remove banking regulations, they tank the economy, banks go under, and regular working people lose everything. There are good still reasons to be able to bet on margins, and even to short certain companies, like if those companies are objectively unethical. Alot of primarily charitable billionaires will short pyramid schemes and companies like walmart that are especially nefarious and prey on vulnerable ppl. Reply @Brandonlee.o 7 months ago But Reply @TelecasterRon 2 months ago WHERE ARE THEY????? Look at the night Sky. Ask yourself, If we will ever go to the nearest star then surely with the abundance of life throughout the Universe some must have been here. If they possess the intelligence to traverse the Cosmos then they, and I do mean they, the multitudes of species at all levels of advancement have likely visited here. So where are they? Not some flying saucer BS. But, seriously, Where are they, them, those or whatever? The enormous intelligence to traverse the Galaxies is inconceivable by man at this point in time (t). We know of many things but, I suspect we are dinosaurs when it comes to intellect. So it presents some paradoxical assumptions. Just one is this, There is a language in the Cosmos or several rather that for all practical reasons is a "Language Unspoken" No words, not symbols, nor the scratches on a tablet or of stone. We are pridefully unaware of our ignorance. Where are they? All the BS about UFO's is stupid idiotical crap. Man perceive himself as GOD. He dreams up fanciful ideas like the caveman he still is. If you show an engineer a spinning disc and magnet he immediately thinks shorted turn. Of course that is a narrow and ignorant assumption. Time (t) is the force or unknown force here. No two point on that rotation are at the same time reference point. You can Reference Frame It, Angular Momentum it, Einstein it, or predict the obvious. But, none of it is why. Gyroscopic yes. A lot of physics in those forces at work for sure. Time (t) is where the magic is and maybe just a small glimpse of that Language not yet spoken. In my time in the Lab I was always drawn back to that levitating magnet and the flux fields. Time (t) is a variable and not a fixed position or frame of reference. Like the engineer interpretation of b and electrical fields there is much more there. I ask you this question What happens in a flux, ionized plasma field between the plates of a capacitor when spun with. Dielectric Phoresis materials and reactions on said materials. What happens to a highly charged plasma field when subjected to these conditions? Dissimilar Material of Matter. Do these forces act the same upon the plasma there in. Remember it is a dead short here and now. Just like a strobe bulb. Motion and Angular Momentum Matter. What does this have to do with the Language Unspoken? Maybe nothing at all. But, time (t) and motion about a curved path has effect on the particle and as such the wave. We know from Quantum that spin is everything and Dark Matter avails itself to the simple. Like the Shorted Turn and Transformer action. It depends like Galileo, Faraday, Kepler, Newton and Plank understood how you look at it. It is right in front of you. Remember technically speaking we are cavemen or like single cell life in a Cosmos of multi- aged, Old, Very Old, variations of life or intellect. RT Reply @trevorhallewell 10 months ago So you’re telling me at the end of this video the conclusion was that this world is a pay to win system. Boo Reply @chasx7062 9 months ago What? Now I have less respect for Isaac Newton Reply @bctyko 4 months ago Senseless topic. When will hava flying cars and humanity Reply @tobling100 10 months ago Bro, just tell us how to use the equation to make money 😂 1 Reply 1 reply @paulhefner2813 8 months ago If you believe the market is random then visit the stock ac ounts for the politicians. The market is a rigged casino supported by statistics from the bronerage firms. It is not some stochastic model any longer. You are already 30 years too late for this belief. Reply @mitch14311 3 months ago Money is so fake Reply @danielmcgraw812 5 months ago So what you’re telling me is the only way to guarantee premium increasing returns is insider trading and manipulation….. Reply 1 reply @OubleJum 1 year ago 2:23 the madness of the people deciding they no longer think using slaves is morally appropriate? 3 Reply 2 replies @devindodge8648 3 months ago Sex and gender are not the same thing. Gender originates from language and has a masculine and feminine which is an inherent property attributed to something based on it's characteristics whereas sex is attributed to genotypic expressions of chromosomes and has to do with reproduction. A good example is La and Le in french, the masculine or feminine has nothing to do with a tables reproduction and yet linguistically it's assigned a genitive. Sex is not gender and they are not the same thing. Reply @kellanwa04 3 months ago Experts in mathematics and experts in physics must be seen as equals to CEOs and therefore need to be given the Luigi treatment 1 Reply @Blue_Appple-es5ul 11 months ago Newton failed Reply @tomato_warrior123 11 months ago meow Reply @stevenson720 8 months ago (edited) He forgot to mention that the hedge funds had bought more short positions than there where stocks. As in they "sold" 130% of the total stock available. So when the price started to rise they all couldn't buy the stock 😂😂 They got greedy they got goosed. Reply 1 reply @YouTubeFireTV-o1h 11 months ago What happened with Gamestop showed you it's a rigged game. Reply @douggale5962 4 months ago This video is horrifying, if you have a shred of insight. Reply 1 reply @carlhopkinson 2 months ago The Efficient Market Hypothesis is crap. Reply @erichamilton2314 4 months ago The stock market is rigged, so this isn't surprising. Reply @ivantsanov3650 11 months ago You are so delightfully out of touch 😮😢😂 Reply @300ghackfesse4 8 months ago Preise erhöhen, Brudi sonst rechnet sich der Lachs nicht. Glaub mir Reply 1 reply @RKK10274 8 months ago This equation black-sholes equation is a BS, none of the stock markets follow this since it is played by power investors. It has too many assumptions and the real approximation is random walk with power investor wish as prior Reply @gregoriohb 5 months ago This is not the whole truth. It's the case for money printed by commercial banks. But not for the money printed by the Treasure. Every single dolar printed by the Tresure is own to the FED because it's bought with money created out of thin air from an account with no balance. Reply 1 reply @DivineKingsBeloved 3 months ago I pray the silver is mine and gold is mine saith the Lord of hosts. Jesus Christ Lord, so be it, Amen! Reply @xavior_india_0891 1 month ago Newton invested heavily in a shipping company that was into trafficking enslaved africans across the atlantic???🤯 Reply 1 reply @AR-vf7vg 1 year ago AI ? Reply 1 reply @raderator 1 month ago Moved to Oz to escape Trump, eh? Enjoy the flys and censorship. Reply @B_Estes_Undegöetz 3 months ago Just a way of calculating the most efficient and risk free (for the scumbag capitalist traders it’s close to risk free) way to steal from the working people of the world. This is in total BS! Rich scumbags creating artificial wealth from thin air based upon the FUTURE labor of working people … but profits they can pocket TODAY! When are you working people going to wise up and tear this down and the people who do it with the whole rotten edifice? There is NO VALUE in this world without actual human labor. Even resources are worthless without human labor to transform resources into useful things. Finance capitalism is a parasite on the body of the already parastic industrial capitalists! Running projections and forecasts and placing bets against OUR labor and our children’s labor to amass monstrous decadent fortunes in this life … sometimes in this week or even this day that amount to the lifetimes of labor of thousands of working people! They do NOTHING productive, useful or necessary. They bet on our labor with money they didn’t even create in order lay claim to fortunes massive enough to influence whole nations of politicians. Their time is up. The sooner the better! Reply @primealiyt1743 3 months ago need to share this because it changed everything. was stuck in the same patterns for years - overthinking, self-doubt, feeling blocked. heard about this book Manifest the Unseen by Luna Rivers in a podcast and the quantum physics approach to manifestation finally made things click. 3 weeks after reading: noticed synchronicities everywhere, opportunities flowing naturally, and my mindset completely shifted. if you're feeling stuck like i was, the frequency alignment method in this book works. still amazed at how different life feels 359 Reply 1 reply @cowquinta-sz8uv 1 year ago Prove the enslaved Africans Caucasian and South Asian false narrative Reply @IanStringer-u1s 2 months ago Is this how so called "smart" people ruined society by creating inequality? If we deleted the stock market would wealth inequality go down? I'm ADHD and public schooled and really struggling because I'm not one of the "smart" ones. I'm always amazed people can become rich but create nothing! Reply 1 reply @zenchannel_ 8 months ago “You can use options to hedge” Yeah right! Most people trading options are complete degenerates 😂😂 Reply 1 reply @SteepVisions 11 months ago Confirms the market is rigged for the average joe Reply 1 reply @Pumiki 10 months ago How can a person be so boring and have 17.2 M subsribers ?! Reply @StephenCrowley-dx1ej 7 months ago I don't believe in true randomness Reply 1 reply @HeavenlyServant87 11 months ago No stranger than Crypto and NFTs lol Reply 1 reply @richiboi_tube4234 8 months ago 1. How can species so smart be so naive?...thats because of distractions, fears, doubts and attachments to materialistic life of society. Back on the Subject of discussion here, * The universe isn't expanding, it's infinite... If it's expanding,then what's it pushing to allow it move? The big bang is not one, but endless circles of infinite big bangs birthing new galaxies and mass bodies .... Is science saying that the universe is a bucket and galaxies are like water expanding and filling up the bucket? Then when the bucket fills up water happens... In reality the bucket is a looped pipe with flowing water so space and time becomes infinite in the sense that it's all looped and black holes connect to other points of space and time in the same 1 loop... But then again looped reality is possible because if it isn't then there will be an end to all things that can exist... Which is total nothingness which is still something that was at the very beginning of all loops in the loop of reality... Multiverse or simultaneous realities are all in one loop but at different points of the infinite loop... That is the force of motion and expansion... ________ 2. Traveling through space or observing space births time for the traveler/observer as there is no such thing as time in a universal scale of reality, only points in the fabrics of the infinite loop of reality... Here energy is all vibrations of waves and light at different frequencies this gives birth to quantum variabilities of mass, matter and anti matter. So we have a loop of mass of reality of all sizes and all directions... Simplified example; see movie AnT man... Time only exists for a mass body either in motion or active consciousness of it's immediate observable and angular space, this means within atoms, neutrons and eletrons with successful fusions exist stars and suns with species that can experience full life times of consciousness in just seconds or minutes of our space and scale of universe which is our conscious reality... Here simplified form highlights vector planes of y/x(traveling through space infinitly and a/b(traveling through the quantum variabilities) , black holes and singularities and are bridges built by the total consciousness of the whole of reality itself for it move, navigate and observe itself in the unimaginable vastness of the infinite reality which began as one, to avoid end of everything and nothingness, the first reaction of consciousness birthed from the action of nothingness was the first big bang , ensuring that not just reality but consciousness never seize to exist for good! Apply all these to all humanity have studied till now and we will understand more about most of the unknowns and unanswered questions about science and even religion... The Spirit of God existence, the trinity being 1 and Christ emphasing we all being 1, Then you will understand from the points and perspectives of observation and motion mathematically 1+1 = 2, 1×1= 1 and >1= 2,3,...~infinity, but at reality scale away from time to quantum variability 1+1= 1, 1×1 = 2 and >1=0 Reply 1 reply @user-jd1ty5bd6l 2 months ago all i know is that once you discover a method, you keep it a secret otherwise Clouzo IQ Agents will come after you thinking that you are a threat.....the losers. You certainly dont publish it on youtube. Reply @RobertoLeal-z3q 10 months ago Just a random note @ 16:29 you can see through the cards, aren't casino cards supposed to be fully opaque for cheat prevention? Reply @boriskogan666 8 months ago as an atheist i can't believe i am saying this, but jesus would be rolling over in his grave if he knew what we're up to now days with finance. 1 Reply 1 reply @MajSolo 2 months ago People playing with money. Invest in real businesses instead, Reply @markverhoeven7518 4 months ago Follow what Democrats buy and copy them. They made million. Reply @FattCattPPB 1 month ago It is a sad commentary indeed that our society values most those who create no value. Reply 1 reply @evanmatthews6998 11 months ago false news Reply @Mac_with_the_lsx 11 months ago Imagine trying to justify insanity and complicating the world for no reason. Like an equation that can explain a flawed environment is flawed, worthless and priceless. With no purpose like those with no mind. Reply 1 reply @bctyko 8 months ago In real world this equation will not work Reply 1 reply @kevinstroup 3 months ago Sorry, but a physics equation will never properly describe a financial market. Physics is grounded in a reality that cannot be changed by man. But the variables that make up the financial market are not made by God, but by man. We can change those variables at will. It is all a house of cards. this is why we have crashes. People are blindly plugging numbers into equations they really don't understand. Reply @johno812 5 months ago Derivatives is a giant pyramid scheme and junk bonds all in one. Essentially, you are making bets on bets. Stocks at least give operating capital to the company that is making something. What do derivatives do? The create “junk bonds” that don’t give operating capital to a company; it give imaginary wealth to companies who want to bet on more imaginary/perceived worth. Eventually, civilization will see how toxic this behavior is to progress in technology, food security and making the world more sustainable. At the end of the day it is a vehicle to generate imaginary wealth that if you get out before everyone else; you walk away with real wealth. Reply 2 replies @ti84satact12 11 months ago (edited) The men who found the formula for computing options, Fischer Black and Myron Scholes, used their option pricing model before it was made known and still LOST money in the option markets! It’s investor confidence or lack thereof that determines market value! Doesn’t matter how much math you know! I think you would have better luck as a psychologist!😊 Reply @DevendraSingh-r4c5h 10 months ago Totally waste of time Reply @KaruppuSamy-r5k 4 months ago Honestly, it breaks my heart how Manifest the Unseen by Luna Rivers isn’t getting the attention it deserves. This book changed me. People need to wake up to this. Reply @Reg-u1r 8 months ago Just so everyone isn't confused, Simons, Black / Sholes, all these simple ass models are mostly useless and wrong, they cannot capture the dynamics that will predict future prices because the information, even in theory, isn't available to them, it isn't in the numbers, it's in the quintillions of neurons spread out over 8 billion people on the planet, and the whole thing can go sideways if one idiot with power's neurons can have some especially dumb configurations. Reply 1 reply @quinktap 8 months ago Why do you peddle such nonsense? Reply @luckypeacock 11 months ago Dude, your entire theory is deeply flawed. The only interference that we had was from inside, from a pro-European party. Why don't you talk about what PNL did and instead invoke the Russians? Reply @Kourosh318 5 months ago when you are 27 mins out of 31 mins of total duration of this video, and you see the giant who completed the game. Truly the Final Boss Reply @igelbofh 8 months ago Derivatives and options are fraud. They do not exist. Reply 2 replies @Thegreat033 7 months ago Frightening amount of people extremely brainwashed, they cannot clearly see through science and mathematics that there is a creator of this universe. It’s so incredibly obvious there is no argument. Reply 3 replies @THEMithrandir09 3 months ago Trillion dollar industry lmao. You don't produce anything of value to society. Comparing Option Trading to Moores Law in computer chips is an insult. Reply @Henkerxp 1 year ago (edited) all i hear in this video is, how to increase your personal profit by not addind any value to the world and that is pure ferengi bs. Reply 7 replies @Brandonlee.o 7 months ago I’m the antichrist Reply 2 replies @QuanHua-q3p 1 year ago Finding the 'Zyphura Money' ebook should be your top priority, even if it's the last thing you do in life Reply @mattmanning9267 2 months ago A pattern I’ve noticed is a lot of high performing companies/funds/people turn out to have cheated! Reply @everdale8920 3 months ago 3:17 Not too far away from being a scalper. Just saying Reply @legendaryspud3462 11 months ago 12:59 Still water 😱 2 Reply 1 reply @quinktap 8 months ago There is no Math in finance. Reply @AxeMurderer2222 7 months ago If your gonna do a vid using math, learn how to do arithmetic first. There is no such thing as 200%. Math that pretends to compute percentages larger than 100% is incompetent aritmetic. Reply 2 replies @remingtonlanenga2524 6 months ago (edited) @15:15 Your wife? OK bud 👌 😅 Reply @thisishappening7273 7 months ago …and now Trump is threatening to default on some percentage of US treasuries, which underpins these trillions in options trades. Reply @Hamromerochannel 4 months ago Stochastic Differentiation Equation. This is used to price options - call and put Reply @joellns 2 months ago She's really outstanding in pointing out the root of the conflicts. Reply @shalokshalom 9 months ago There is no randomness. Reply @NerdParaphernalia 10 months ago Discover the random walk, not invent it... There is a very big difference. You should be smart enough to know that difference too. Reply Top is selected, so you'll see featured comments