What is Alpha and Beta in Investing/Trading?

In this episode, we break down the difference between alpha and beta and what you need to be careful about when calculating someone's alpha that is zero.

The Socials:

Daniel Snyder (Dean Gatsby) -

[MohammadJaraa-pz]

I really love how easy you made these concepts to grasp even for someone is not in the field that had some curiosity

[xXlaalamtXx]

I’ve seen many videos explaining beta & alpha, none of the were clear to me, but this videos explains it perfectly.

You are a legend❤️

[sneakerhead]

Volatility doesn’t mean risk. That assumes stocks only go up and down because of their true value. Which is false. There’s emotions, inefficiencies, manipulation, and black swans in markets.

The only way to look at beta is just saying beta is a particular index or benchmark when you’re investing and alpha is essentially outperforming the market. When you start think about volatility and calculating risk it’s just wrong.

[davidyoon]

I'm surprised you don't have 1 Million Subscribers yet. I am learning finance in uni right now and it was very well explained. Keep it up! Thanks.

[tgymartin]

Jim Cramer and Warren Buffett cannot exist in the same sentence.

[spikehunter]

I bet you're sitting on a jackpot if you had AMD & Nvidia

[nasserbushra]

love it, explained clearly
thank you

[gopalkrishna]

For swing trading if I have to buy a stock for not more then a week and if I want to make 7-10 % profit should I consider beta higher then 1 or lesser then 1

[adriannasui]

Maybe I'm wrong but I felt you equate volatility to risk, using them interchangeably.

[saiatrey]

0 comments? seriously?! Btw nice vid explaining Alpha and Beta

[markharbin]

What about alpha as it relates to CAPM?

[fanetatae]

Great video buddy... can't you tell me please what's that app you using when you show example with Amd and Nvidia??

[gabakbusiness]

hood has 1.5 beta
that means if the NASDAQ goes up, will hood go up too?

[julianavila]

Damn, suggested NVIDIA in April 2020, quality.

[nvugteveen]

Alpha is rare. For most investors it's not Alpha, but just Luck. Alpha is susceptible to statistical bias. The timespan over which it is measured is very relevant.

Alpha is also related to a benchmark, which is not the same as "the market". So in theory, ETF's could choose a benchmark that would be in their advantage.

[cekirdekci]

got lost in details instead of explaining alfa.

[juancarlolansangan]

i think this crypto has a shot to go up. its current price is still on low. its time to buy i think

[patrickH]

How does you reading a textbook to me help me understand what alpha or beta is? Bunch of people listening to bunch of BS and suddenly woke and pretend like a pro.
Why is 2.xx beta high? No explanation. Why is 1.xx beta low? No explanation
Can you really compare beta like that? In absolute scale? 1.2 beta is 20% greater volatile? What does volatile even mean?
If one stock has one big spike and another stock a bunch of small spikes, and they have the same beta, can you say they are the same? No.