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https://xkcd.com/1570/ https://xkcd.com/1570/ The important math for understanding the foundations of finance and business isn't advanced math. It is accounti
by theincredulousk 6y ago
https://xkcd.com/1570/ https://xkcd.com/1570/
The important math for understanding the foundations of finance and business isn't advanced math. It is accounting - primarily addition, subtraction and simple algebra or calculus 101 for things like interest calculations or discounted value modeling. This basic math also underpins the "fundamentals" of business used in objective, common-sense investing - the kind Warren Buffett is fond of.
Also, "stocks" and math are a classic "the map is not the territory" situation. Math describes stocks and business performance very well but does not define it. A machine learning algorithm trained on historical price data in concert with differential equations of 1,000 variables will historically do no better at investing than buying and holding index funds.
Technical Analysts "quants" would disagree, but alas: https://www.bloomberg.com/news/articles/2020-05-02/after-quant-bust-2020-comes-a-reckoning-for-stock-math-wizzes https://www.bloomberg.com/news/articles/2020-05-02/after-qua...
So the thing to focus on isn't going from math -> stock trading. It is to learn accounting and business and basic stock market concepts. Eventually a math background will help, but it's support not the foundation.
- dllthomas 6y ago11:15, restate my assumptions: ...