Financial Derivatives LLC ~ This website was founded on an theory, an idea, and a passion ~
Our founder, Shane E. Drozdowski, has a fundamental commitment in life:
"To help others learn how risk management tools called financial derivatives can help them improve their investing and trading performances. I hope that they can reduce their risk and make more intelligent decisions by using these instruments. The output of this effort’s equation is the promotion of a healthier marketplace in which money is only made or loss in a more organized and less chaotic fashion (fewer people losing their homes and fewer couples fighting about losses)."
~ Making improvements to market efficiency ~
The use of online discount brokers growing in such a large size means there is a lot more people investing and trading their own money. This can be a good thing if you know what you are doing, but a very bad thing if you are missing just one piece of information or knowledge. Many people fall into the later category. As a result, markets have been moving towards a less efficient path causing violent swings to the upside and downside. Most investors do not know the products they trade, are making decisions based on emotions, and are risking more than they ever would before.
If we can help one person make a better decision, then this site is worth our time. If we can develop a community of intelligent investors and traders, then this site is truly changing the investment landscape. We could then put the marketplace back onto the road of improved efficiency.
~ Who is this site for? ~
We are focusing on anyone who truly wants to commit to taking their trading and investing to the next level. Trading and investing on your own is a responsibility many leap into without even thinking. It is so simple now with online brokers that you only need to be smart enough to operate on a basic web page to put an order to go all in on a stock. The easier it is, the more it will happen. Long story short, you need to know what you are doing and you need to minimize your risk. That is where we come in. We help you learn the ins and outs of derivatives. The more you learn the more you should then earn.
~ Market efficiency needs to become more efficient! ~
Those who commit to themselves on making the market more efficient are also committing themselves to making the investment world a better place. That helps save millions of people from making uninformed decisions.
You see, when the financial markets are inefficiently priced, it could be leading many investors into buying assets that are way over-priced or under-priced. Look at an example like this: If we have a bike that is worth $100, but people are trading it at $200, and an investor automatically buys a piece of it in their 401k, they will be very upset when the asset finally gets valued at fair market price of $200. If we were an informed investor or trader, we would either sell our box for $200, or short it there, sending the price down to $199 in this example.
Now if there are enough of us out there, we could bring this asset down to the fair market price of $100 much sooner, causing fewer people to purchase at inflated prices. We get paid for our risk by making or saving money on the downside, while those that would have bought at higher prices will be excited to see they didn’t lose as much money as they would have. Maybe if the price was at $199 more investors would have stayed away and they can thank us later!
Again, this is just an example, but market this is what market efficiency aims for in a nutshell. People think traders should not be making money on buying and selling assets, but they have no idea these people are hard at work making these assets efficiently priced helping the ridiculers out in the end.