/sci/ - Science & Math

[Anonymous No.4718775]

I'm thinking of getting started in the stock-trading thing. And I want to have a non-shaky start.

What advanced math concepts pertaining to the stock market and trading in it, if any, should I familiarize myself with?

[Anonymous No.4718779]

Stochastic calculus

[Anonymous No.4718781]

quantum finance

[Anonymous No.4718783]

Spivak

[Anonymous No.4718785]

>>4718775
Algebraic topology

[Anonymous No.4718789]

Derivative mechanics

[Anonymous No.4718794]

Complex analysis

[Anonymous No.4718798]

measure theory

[Anonymous No.4718806]

Arithmetic

[Anonymous No.4718803]

Electromagnetic probability

[Anonymous No.4718808]

Nanophotonics

[Anonymous No.4718811]

biology

[Anonymous No.4718812]

Plasma geometry

[Anonymous No.4718817]

Bolyai-Lobachevskian geometry with a rigorous, applied focus on hypercube financial models

[Anonymous No.4718824]

History of statistics (only Gauss)

[Anonymous No.4718829]

The God Delusion

[Anonymous No.4718832]

>>4718779

This.

Stock trading is stupid anyway, though.

[resident /sci/ economist !!0CqB7P/574e No.4718842]

>>4718829

This

[Anonymous No.4718863]

>>4718842
>>4718829
>the complete works of Richard Dawkins

[Anonymous No.4718869]

Christopher Hitchens
Spivak

[Anonymous No.4720881]

>She was made the subject of a three-month curfew between 9pm and 6am, told to carry out 240 hours of unpaid work, and ordered to pay 9,100 GBP in compensation as well as 500 GBP towards the prosecution costs.

[Anonymous No.4720981]

Ignore all that faggotry above this post.

The stock market cannot interpreted using mathematics any more than it can be interpreted in any other way.

If you study economics, that's what you'll find.

There are ways to make money on the stock market, but studying advanced mathematics is a complete waste of time. Google the socialist calculation problem for some insight as to why that might be the case.

Really you should focus on comprehending some basic theories and hypothesises in finance:

Random Walk Theory
Efficient Market Hypothesis

Then you need to study the history of asset prices over time. e.g. small capitalization stocks, value stocks, commodities, real estate and so on.

Then you'll start to get a feel for "what is normal" for markets. e.g. explaining why 7% real return for 30 years for gold prices isn't very likely.

That's the kind of information which is valuable for a stock market participant. Price predication is almost completely a giant waste of time unless you can somehow influcence the asset itself e.g. by being in the business itself, insider information etc, and that doesn't even work out so well on average.

[Anonymous No.4720999]

>>4720981
Bullshit. Fundamental "investing" is completely obsolete. Don't invest, trade.

en.wikipedia.org/wiki/Quantitative_analysis_%28finance%29

Quants motherfucker.

[Anonymous No.4721009]

>>4720999

I'm not talking about Fundamental Investing.

I'm talking about understanding some very basic finance concepts so you don't make stupid mistakes.

e.g. what is the average risk/return profile for the country/sector/industry/stock/commodity/currency.

'Quant' work is basically modern day astology.

[Anonymous No.4721021]

>>4720999
HFT involves using incredibly complex algorithms to predict stock trends and make millions of trades per second using extremely advanced algorithms with near-instantaneous connections. Suggesting that an individual attempt any sort of algorithmic trading using a personal computer and a cross-country commercial internet connection is absolutely absurd.

Traditional investing is still just as valid as it ever was. That is, attempting any sort of mathematical analysis is utterly hopeless, attempting to pick it up as a casual thing or to make a significant income off of it is fairly unrealistic and it will almost certainly take months of unsuccessful learning with zero to negative income before at all consistent profits are to be made, but with patience and experience a skilled investor can certainly make well over market interest rate on an investment.

[Anonymous No.4721027]

>>4721009
>not talking about Fundamental Investing.
then
>average risk/return profile for the country/sector/industry/stock/commodity/currency.
pic related, mfw

>'Quant' work is basically modern day astology.
Assuming you meant "Astrology." Quants are able to make millions (if not billions) of dollars while astrology continues to remain utter bullshit. I don't see the correlation.

[Anonymous No.4721024]

>>4721021
Derp, said incredibly advanced algorithms twice
nb

[Anonymous No.4721031]

>>4721021
I was simply responding to:
>The stock market cannot interpreted using mathematics any more than it can be interpreted in any other way.

It's quite obvious not just 'anyone' is capable of such things.

[Anonymous No.4721036]

>>4721021
HFT yes... quantitative analysis is used in other areas though.

wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=all

[Anonymous No.4721051]

>>4721027
>Quants are able to make millions (if not billions) of dollars
I'm sorry. Quants don't actually make money. They leech it from the market and don't actually do anything constructive.

[Anonymous No.4721059]

>>4721036
I know, I'm studying to be a quant myself.

But it really only works in an organized setting, with a large amount of capital both technological and financial and generally with a large number of people working together, it's really not at all applicable to individual work or study like OP seems to be implying he's interested in.

[Anonymous No.4721061]

>>4721051
lol
That's what wall-street is made for, making money on the flow of other money. A researcher working on some cure will be lucky to earn $80k/yr whilst a high-end investor can make a few easy million just in bonuses.

[Anonymous No.4721080]

>>4721027

What I am saying is very simple. If you don't have a benchmark for your earnings from the stock market, then you don't actually know whether you're winning or losing.

There is no sense in trading in a airy fairy fashion, making lots of money and then turning around and claiming you've some special skill or that you've been successful.

Point: A rising tide lifts all boats. How do you know your performance isn't simply the result of random fluctuation?

That is why you need to know the average risk/return profile of your trade. You DO need to know basic finance, even if you're not doing fundamental investing.

For the record, I don't do Fundamental Investing myself, I do indexation across thousands of stocks. But I still have to be aware of price and value across the market. That applies whether you are macro level like me, or working at the microscopic level of buying and selling indivdual shares.

[Anonymous No.4721086]

>>4721061

Doubt you know much about how it really works to be honest.

> high end investor
> paid bonuses
> wtfiamreading

[Anonymous No.4721109]

Quant on this:

>China And Japan Dropping Dollar Cross Rate System, Will Transact Directly

http://www.zerohedge.com/news/china-and-japan-dropping-dollar-cross-rate-system-will-transact-direct
ly

[Anonymous No.4721112]

>>4721109

All good things