What type of mathematics is most important pertaining to investing in stocks?
Algebra
>>1003877
Multivariable Calculus
>>1003877
addition, subtraction and multiplication.
>>1003877
Stochastic Calculus
>>1003877
Depends on your investing style. If you want to trade you should be adept at advanced stats, calc, matrices. If you're into value investing basic arithmetic is enough, maybe a bit of simple algebra. You can also mix styles using stats background to back test covariance between strategies shared.
Okay so he asked what is most important, but if I'm in university for Mathematics Honours, should I specialize in something like Financial Mathematics and Accounting, or Statistics, or Bioinformatics, or what? Cuz I have to pick a specialization, it can be Actuarial Science, Applied Math and Stats, Applied Stats, Applied Math, etc etc etc
Which is the one that encompasses everything I'd need to know, basically which is the hardest and toughest Math specialization? Mathematical Finance?
>>1003952
Electrical engineering
You learn all the math you would realistically ever need AND get a degree that you can actually use
(the price of the stock when you bought it * the amount you bought) - (the price of the stock when you sold * the same amount as before) - taxes - fees = profit.
if profit > 20% of (the price of the stock when you bought it * the amount you bought) then i want to be your friend :-)
>>1003877
i want to shove my nose directly up her asshole and take many long, deep, lung filling inhales until i pas out and enter a lucid dream where i can continue to do the same.
All you math you need to learn you learn in elementary school.
>>1003952
pick a career than specialize in it. do a quick google search for what you need to specialize in. It is stupid to study bioinformatics when you want to go into finance.
Doesn't wall street hire math phds? not people with bachelors.
>>1003877
High test math
>>1003952
So you are smart enough to study maths at uni level but not smart enough to decide which specialization to chose. Interesting.
Fundamental investing requires very little math. Understanding how to read financial statements, and a bit of algebra is all you really need.
Valuing bonds and stocks requires algebra and a bit of mathematical sense. Calculating things like duration and convexity are not mathematically difficult, just the ability to understand mathematical notation. If you wanna take shortcuts for duration and convexity, you can use calculus to find these.
Option Valuation and trading is more difficult. You'll need calculus, both standard and stochastic, along with some linear algebra and diff eq (preferably some experience with pde's).
In reality though, unless you're working for a hedge fund, trading requires very little math.For all of the above, you'll wanna make sure you know a bit of statistics.