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Hoots : What are the mathematical techniques used in stocks market? I have been reading several forums and about investing in Stocks Market, and gathering information about different strategies, mainly Buy and Hold. Now, as a mathematician - freshhoot.com

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What are the mathematical techniques used in stocks market?
I have been reading several forums and about investing in Stocks Market, and gathering information about different strategies, mainly Buy and Hold.

Now, as a mathematician (We are supposed to be proficient at statistics, probability, modelling...) I wonder is there is a branch (or group of advanced techniques) of mathematics-finances that deals with stocks market.


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Many branches of maths study the market, your question would need a lenghty answer. The mathematical problem with the behaviour of the stock markets is that their movements react to human emotions. Fear and greed as you probably knows.

So you need to find a mathematical branch specialised on irregular and chaotic behaviour. There are practical researchs being done nowadays in financial institutions with program trading, you can check it out searching the web. The objective is always to make money, that is greed disguised.

I would suggest you start by reading this article on generic algorithms.


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