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/biz/ - Business & Finance

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4041205 No.4041205 [Reply] [Original]

Short question.
Im chilean.
Im in my first year of what would be translated to english as "comercial enginerig" mention in economy. Which is basically an economic degree.
Will all this knowledge help me to invest in the stock market?. Will it help me investing short/long term?.
(My carreer has economy with a very strongh mathematical foundation)
Yes, i am a student with good grades.

>> No.4041302
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4041302

>>4041205
no, not at all

>> No.4041359

>>4041205
Lo siento pero /Biz es solo para cryptos.
Compra alto, vende bajo

>> No.4041394
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4041394

>>4041302

Well it depends.

Risk management requires some math and can be derived by calculus, but the only calculus I ever did in Finance was on an extra credit question the professor was seeing if we paid attention in class to prove that the WACC formula actually works mathematically.

Beyond risk management there isn't a lot of math in day trading.

That said, if you get into derivatives like options, then hell yeah... You need a lot of math, but its simple and it uses formulas that while math based, aren't taught in economics and math classes.

Since options is coming to a few crypto exchanges its something you should learn as you can gamble on price movements without going long (force multiplier) and combine it with longs, shorts, and other things to lower overall risk.

Of course synthetic derivatives like that got us in the 2008 shit hold... I mean hole. (I typed hold and was going to change the e to a d, but realized that was a fruedian slip so keeping it).

>> No.4041424
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4041424

>>4041205

Also. Another route is programmed trading.

Basically the problem is that people lose shit when they trade on emotion.

Either you have to:

A. HODL and not look at prices every day (this strategy actually works strangely enough)

B. Or create a system that you only trade on rules like if price drops 10% I'll sell and buy when it goes up 5% etc etc

But if you are doing it manually then sometimes emotions get the better of you and you fear sell and hype buy which leads me my other point...

If you are good with math and can learn programming. You can make a trading bot:

https://www.youtube.com/watch?v=rky1EnDqmhI

Just don't fuck up your decimal places.