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    "# Chapter 1\n",
    "\n",
    ">## The Whats, Whos, and Whys of Quantitative Trading"
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    "## General Strategy \n",
    "\n",
    "\n",
    "This book focuses on the **statistical arbitrage tading**. \n",
    "\n",
    ">Statistical arbitrage deals with the simplest financial instruments: stocks, futures, and sometimes currencies. One does *not* need an advanced degree to become a statistical arbitrage trader.\"\n",
    "\n",
    "To get an idea what actually **statistical arbitrage tading**, This [Wiki Entry](https://en.wikipedia.org/wiki/Statistical_arbitrage) may be more helpful.\n",
    "\n",
    "\n",
    "\n"
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    "## Be an independent trader\n",
    "\n",
    "Dr. Chan shared his frustrated experiences in working at several institutions and his inspiring expereinces as an independent trader. Lots of people, acoordind to his description, can be an independent quantitative trader, as long as you are willing to spend time on it. \n",
    "\n",
    "Also, to be an independent trader, you have to have in your mind\n",
    "\n",
    "1. It is important not to have a need for immediate profits to sustain your daily living as strategites have intrinsic rates of returns that cannot be hurried.\n",
    "1. Instant wealth is not the objective of quantitative trading\n",
    "\n",
    "One interesting thing about starting as an independent trader is how much money you should invest as your initial fund. Dr. Chan suggested us start small -- the idea of a *small* fund is actually something like \\$50,000.\n",
    "\n",
    "In fact, for the quantitative strategies to work, Dr. chan suggested to start with \\$100,000 -- not $1,000.\n",
    "\n"
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    "## Three Aspects of Quant Trading"
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    "### 1. Scalability\n",
    "\n",
    "You can use *leverage* to trade more money than you actually invest in your account. You can use this *leverage* as along as your strategy constantly make profits. \n",
    "\n",
    "Be careful. *overleverage* is dangerous. \n",
    "\n",
    "> Quantitative trading is definitely not a get-rich-quick scheme. It is dangerous to overleverage in pursuit of overnight riches."
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    "### 2. Demand on Time\n",
    "\n",
    "According to Dr. Chan, quantitative trading can be quite flexible in time, especially you have automated your system in trading. You probably only need to manually operate your trading system at the beginning and the end of a trading day.\n",
    "\n",
    "You do need to do research and develop new strategies, but it can be done whenever you like. He has an interesting conclusion on demand on time, which I am not sure I would agree\n",
    "\n",
    "> In short, if you treasure your leisure time or if you need time and financial resources to explore other businesses, quantitative trading is the business for you."
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    "### The Nonnecessity of Marketing\n",
    "\n",
    "The quantitative trading seems to be an independent job that you don't really give a damn to other's perception of you when you make monkey.\n",
    "\n",
    "> The business of quantitative trading allows you to focus exclusively on your product (the strategy and the software), and not on anything that has to do with influencing other people's perception of yourself."
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