James Simons (Renaissance Technologies)
said "mathematics" is most important thing in stock trading.
what would be the most important mathematical idea in stock trading ?
statistics, fluid dynamics ?
Technical analysis is not applicable to today's stock market because of the advance in algorithmic trading. Before, human used technical analysis. Now, traders are competing against computers that many signals other than technical analysis, making the latter essentially useless.
Gambling is significantly different from day trading and it is unfair to characterize day trading as gambling, but I am willing to recognize that the rush of winning is likely the same feeling for both .
I know that there are many investors (including professional traders) who are less willing to cut losses at -2% than taking profit at +2%, but is it the only reason?
Traders with less than $1 mn in AUM must have an advantage of scale. Are there any evidences that these traders outperform bigger funds in some asset class?