What is the most important mathematical idea in stock trading?

[qxr1011]

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 ?

The Money Making Theorem.

It is based on two postulates:

1. Knowledge is power.

2. Time is money.

Given that Power = Work/Time

and because: Knowledge = Power and Time = Money

Knowledge = Work/Money

from here we can easily obtain:

Money = Work/Knowledge

So when Knowledge goes towards zero, Money goes towards infinity, and on the contrary when Knowledge goes toward infinity, Money goes towards zero.

The evident conclusion: The less you know, the more money you definitely make.

Those of you who have difficulty following this presentation must make a Lot of Money !

 

[OddTrader]

The Money Making Theorem.

It is based on two postulates:

1. Knowledge is power.

2. Time is money.

Given that Power = Work/Time

and because: Knowledge = Power and Time = Money

Knowledge = Work/Money

from here we can easily obtain:

Money = Work/Knowledge

So when Knowledge goes towards zero, Money goes towards infinity, and on the contrary when Knowledge goes toward infinity, Money goes towards zero.

The evident conclusion: The less you know, the more money you definitely make.

Those of you who have difficulty following this presentation must make a Lot of Money !

 

[maler]

Forecasting what the forecasters will forecast.