Math behind options trading

How about this for a trading term? Ever heard of that one?

You probably have if you are a military enthusiast or a sniper. I recently purchased a book entitled Trigger Men: Shadow Team, Spider-Man, The Magnificent Bastards, and The American Combat Sniper , by Hans Halberstadt.

Options Trading Don't Hide Behind The Math

He includes a glossary and, you guessed it, one of the entries is BEER MATH. Here is his description:.

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Sniping involves a great deal of mathematics almost as much as the art of artillery but the problems must typically be solved under conditions of extreme stress. The precise calculations taught at sniper school, then, are reduced to much simpler formula-so simple, snipers say, that you could get them right even if you were under the influence of a few beers italics mine for emphasis. I believe that is the point of BEER MATH and it is my point here as well. Shall we call it BEER MATH TRADING?

Snipers are involved in the business of hunting people in a very calculated, methodical way requiring much attention to detail under very stressful conditions. The complexity is really found in its simplicity.

Lessons on How to Trade Binary Options

Simple methods are sometimes the most complex because we make them that way. We do not want to believe that trading, for instance, is really simple.

Call and Put Options | Brilliant Math & Science Wiki

Instead we want to make it more than what it is. It must be complicated, we reason, if so few succeed at it.

So few succeed at trading because it is really very simple. Which is easier to read and understand? Could you understand one better than the other if you were under the influence?

It may just reduce the needed calculations to much simpler formula. HTML is allowed in the comment box above. You can use the following tags: STOCK AND OPTIONS TRADING USING BEER MATH Written on April 21, by David in Battlefield Preparations , Battlefield Strategy , Candlestick Charts , Crosshairs Wisdom , Technical Analysis , The Crosshairs Trader Dictionary , Weapons.

Here is his description: Does your stock chart look something like this: Leave a Reply Click here to cancel reply.