"I'm a Social Scientist"

[Bob21]

Now I have no idea if these theories could translate into the stock market. But guess what? He made 800 million, so I guess they could and DID! To say you find it stupid, knowing that it did, seems kind of bizarre.

I’ll help you out here KJ. First off there is no math formula to predict the future, so you can’t use math to predict the stock market. It’s that simple! That is unless Thorp is related to Notradamus (that’s a joke).

Second, I do basically know what Thorp did. Now I’m talking about his legal trading, not the illegal trading. I spent quite a bit of time looking into this. It’s nothing complicated, it comes back to highly leveraged trading. It works in stable markets and during the time Thorp owned his security firm, the markets were very stable.

Btw, he lost a lot of money during the 2008 Financial Collapse. He doesn’t say how much in interviews, but he does say it was a lot. If he owned his investment firm during this time and was using his strategies, his firm would’ve probably gone bankrupt.

Lehman Brothers went bankrupt using this approach. This was a company that was around for 160 years but during the 2008 financial crisis, it took them out. That’s what happens with highly leveraged trading, when the stock market goes south. The math falls apart. For the record, the math in blackjack does not fall apart in times of crises. It’s a same in stable times or if a nuclear bomb should hit our country.

Any highly leveraged approach can make multi-millions in stable markets, but if a catastrophe happens (and it will) these approaches will lead to bankruptcy pretty quickly.

Thorp has no majic formula to predict the stock market. Only God can predict the future. And last I checked God has not been trading in the stock market.