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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (1714)4/5/2001 10:32:07 PM
From: BilowRead Replies (1) | Respond to of 24758
 
Hi ahhaha; A good bit of the art of trading involves finding indicators and using them while they remain working. I agree with you that the traders abuse the mathematical definition of volatility (in multiple ways), but as I showed with "derivative", the fact that traders use a term that is used in mathematics does not mean that the term (in this case "volatility" carries the same meaning as it does in mathematics.

You're using the wrong language to translate their statements into thought. This is hardly something that is unique to the trading community. Go to your local high school and carry a sign outside saying "Integration Now!!!" and see if people interpret your sign as an indication you want better pre college mathematics preparation. Heck, find out what the Biologists think when they say "differentiation", or what the the bible meant when it said "go forth and multiply". Does "divide and conquer" mean to use math to get ahead? How about the psychologists when they talk about "groups"? Or farmers and "fields"?

So no, the traders are not using the term "volatility" in the mathematical sense. That's your problem, not theirs. By and large they make money, mathematicians do not. (From my personal observation. There are exceptions, of course. (G))

-- Carl