2025-07-11
Finance course
Haven't made a proper course as it's a not an immediate priority.
Topics I strongly recommend to almost everyone
- Intro to asset classes
- equity, bonds, crypto, gold and other commodities, real estate
- Intro to derivatives
- margin trading, quarterly/monthly futures, perpetual futures (popular in crypto), european and american options
- Intro to risk
- time value of money
- expected value, variance, sharpe ratio
- Maximising expected value is not enough, you want maximise expected value given a certain variance, tail risk and time horizon. Two opportunities may have same expected value but one may be way better than the other.
- tail risk, log utility, kelly criterion
- Variance and tail risk are two different risks, don't mix them up. Calculate separate values for both.
- Trading in practice
- understanding orderbook, limit/market orders, stoploss, etc
- Effects of large portfolio size (> $10M)
- absorb more tail risk (due to log utility)
- access illiquid but big opportunities
- pay full-time employees to do analysis for you, thereby increasing expected value of bets
- illiquid small opportunities are no longer worth your time
- (if you are trading personal funds, you have comparative advantage in illiquid markets where big players don't bet)
Topics I weakly recommend (depends on your situation and your interests)
- Financial theory
- Markowitz optimisation, formal proofs surrounding EMH, long-term versus short-term
- Fundamental analysis
- EBIDTA, balance sheet analysis
- Options trading
- brownian motion, black scholes model, black scholes as applied in practice
- Liquidation process
Topics I recommend you avoid
- "Technical analysis" - it is mostly a scam
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