|No, it’s not because of the Ferrari|
I am a coder by day and trader by night! Coding is my day job. I am fully aware that only having a job will not allow me to provide for my family and myself consistently in the long run. This is because most of the western societies are setup in a way to be more and more disadvantageous towards the working middle class. I do not need to be a billionaire to be happy, but our society is becoming more and more binary. It seems that one can either be rich or poor, in which case I opt to be rich, or at least hedge myself against being poor. Trading and investing are my hedge against this trend.
The super rich and us
Below are two videos from the BBC documentary “The Super Rich and Us”. It clearly illustrates and explains the polarization of wealth distribution in our current society. Here is a catchy quote from the documentary:
There are the haves, the haves not and the haves yachts!
But actually we seem to be heading for a society where there are only haves not and haves yachts. At some point in video two the Black-Scholes formula is mentioned as a revolutionary model that promoted taking risks as it could accurately predict future risks. My personal opinion on the Black-Scholes model is that is does not predict risks correctly as it uses normal distributions to model risk and neglects the long tail of risks (and opportunity) as I see it in the real world. If you wanna know more about this subject, then I suggest you read any of Nassim Nicolas Taleb’s books on randomness and the Black Swan event. It are actually the long tail events, the events that most likely cannot (ever) be accounted for in any risk model, that sting us. And when they sting, the huge risk turns into losses and is actually deflected on the poor / non-rich as they are simply unable to do anything about it or are simply unknowing. An example of this are the huge bail outs of banks in 2008 paid for with taxpayers money.
Please enjoy the videos and let them be an inspiration to actively manage your money and wealth, however small it might be right now. I believe you either grow it, or you will become enslaved to the 1%.