Math for Day Trading
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- เผยแพร่เมื่อ 26 มิ.ย. 2024
- In this video I talk about math for day trading. I hope this helps someone. If you have any advice for people on this please leave a comment in the comment section below.
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Thank you:)
Ohhh I must say it'd be awesome to see you cover Stochastic Calculus and some other cool stuff deep in mathematical finance.
❤️
As a secondary math teacher, I wish curriculum writers would include finance and money management. Soooo many students crave to know that! Instead we cater to the ACT and SAT...
"The trend is your friend... until it ends." -famous saying
everyones got a plan until they get punched in the face - mike tyson
@@bruhhhhh718 " if you cant win just eat the ear " - Tyson
You are my favorite Professor and have inspired me to learn what no one else did.
If you have access to a good amount of quality data, you can probably create reasonable mathematical models. Information from those models can then be used to adjust/fine-tune your trading strategy.
I would add that if you plan on quant trading, learn cs. Math in quant finance is all applied, a rabbit can memorize it. Engineering a good trading system is the real art and the job of a good computer scientist.
How much programming is in quant?
@@kaoutarrachdi4574 depends what you do. You can design trading strategies (lots of data analysis), or algorithms to make them efficient, secure, etc. Point is quant trading is about having an automated strategy. There are a lot of functions in that process, they all boil down to data science and algorithms with the exception of the lines of code where you're estimating something, then there's math... Again though, purely applied.
@@yomommamadthicccuh thanks
@@kaoutarrachdi4574 I would add that that is quant finance in industry. In academia financial research is much more mathematical.
Omg!!
Would love to hear from you more about this topic. Thanks for all the efforts you put into it ❤
Banks have massive scale, moving their trading costs near zero. They have great data and speed. They have tax advantages. Retail investors might do better with longer term buy and hold investment strategies, particularly US investors where low capital gains tax rates are still available.
Thank you for recommending John Murphy's book. I'm going to purchase a copy today. 👍🏼
One of the top tier math guys
To your point, the mathematics of losing is: if you buy at 100 and it drops to 50, you have lost 50% on this trade. To get back to even, you need a 100% gain. Hence money management is critical.
Some other great reads: 1) Anything by Stanley Kroll on commodities. 2) Reminiscence of a Stock Operator by Edwin LeFevre.
Jim Simons Medallion Fund 66% return for 30 years...........Nuff said!!!!!!
He gives very helpful tips for mathematics!!!!!!!!!!!!!
Thank you, Isaac Newton.
Thanks for your words of advise, pretty good book
Thanks for this
I got the book that you recommended, thank you!
Use stochastic models to find your exit spots. Good luck
Hello I don't think this is the right video to ask but do you have any videos from calculus 1 that covers integration? Couldn't find it on the channel, so maybe I didn't see them? Anyways love the videos! Thanks for putting them out!
Excellent video as always
Thank you! Cheers!
I think rn having a long/short on correlated assets is the only way to go. It negates market volatility and you can make an extremely diverse portfolio of long shorts. You can even interchange the weights of the trades.
Please, make a video about the book "What is Mathematics" by Richard Courant. It will be great!
That's a very interesting question
I am using trading view to learn math with pine script.
If you're into math, leverage that and get really knowledgeable about options strategies and pricing. Interesting stuff and they are a much more nuanced way to control risk if you know what you are doing (quite the opposite if you do not). The problem with basic stops is that the algos and traders are increasingly adept at "stop hunting", so be prepared to get stopped out a bunch only to watch the trade go in the direction you predicted moments later. The nice thing about options is that often you don't even need to have stops at all, while still maintaining a non-linear profit curve if your predictions about underlying instruments prove true.
I'm not a pro at all, but knowing your commodity options maximum risk is fixed, and your profits unlimited is sooo cool. And I know about volatility, etc.,. still, options are cool!
dude ya gotta put math sorcerer coffee mugs for sale bro! very important!
Can u recommend books on numerical analysis
Do you explain in this book the practical application in trading by integration and differentiation?
The best exit strategy is to never exit. Buy and hold. As Warren Buffett says: 'it's not about timing the market, but time in the market'.
👍
Partial Differential Equations.
Halo sir, i am junaidi from indonesia, i do agree that math, especially statistics are very helpful in stock trading. i have no background in economics and i do not understand how to read financial reporrts and calculate PER, PBV, etc. Instead, i use simple statistics and square roots to calculate the possibility of X stock to go up and it works well in US stock and indonesian stocks in particular.
Since you mentioned Quants I wanted to know what you think of Jim Simons?
I mostly heard about him from finance people and I am curious about what math people think about him. I know for sure he made contribution to math with the Chern-Simons thingy.
That guy is a legend
Day trading with a firm with large capital and support, day trading at home is like saying I want to show up to a professional football game suit up and play
Invest long term if you are young TIME is your best friend invest with your grand kids in mind and it will shock you how much money you have accumulated when you are 50
want to take risk great research trends and invest in those up and coming technology's or commodity trends , bond trends but again long long term outlooks
You mean $time (insider joke).
Nah wsb get money quick
Which books should I go for to study probability?
I worked in rates trading for over 10 years, and am back at college studying math at age 37.
I'm curious... have you made money from technical analysis? I've always been skeptical...
What is that website that you used for finding books on many different websites?
bookfinder.com
i've lost most of my money unfortunatelly in trading but i also found few things. not saying any miracolous things but some observations.
it is hard to trade an asset which lacks the accumulation property of the price. that means if its market is too "effective" that means it makes eg 75% gain per day, and "wolfs" from wall street or whatever will effectively erase that gain yet that day.
that means, easiest to trade is the asset, which shows the accumulating property.
but generally i was always interested how the mathematicians view the market and which magincian tricks they use. pitty i dont have the skills and brain like guy in this video :). maybe it would helped me.
Do you trade yourself?
yup
@@TheMathSorcerer you should make more videos or another channel on your trading id love to see from the perspective of a mathematician how you enter trades and what goes through your mind
@@TheMathSorcerer do you trade crypto too? The defi space has recently created user friendly tools with yields that almost no day trader can dream of. I'm talking wonderland on avalanche and the spectrum protocol on terra. The big plus is that you can make money there without micro management needed. Only disciplin.
More interesting would be: are you profitable?
I love how every youtuber has to preface their financial advice by stating that it's not a financial advice in order to avoid litigation. :>
Trading is a difficult game. Collecting liquidations is easy.
Think of what you asked "how to use math for day trading" if you want to make money you need to find professionals making money for the banks , hedge funds etc
then learn a a ton of math and maybe one day you will find an application but be warned the results may not be better.
think of PDE( partial differential equations) and options is PDE going to give you an edge in in trading options most likely not hell might even hurt you b/c if you get lost in computation and you are not listening to the market or you are not aware of other participants you will get hammered again that is why it is important to be at a firm
Paralysis by analysis.
Could you do a example of Algebra 2 honors in exponential functions
sure good idea thank you:)
@@TheMathSorcerer can you also do word problems about exponential functions in algebra 2 honors
Thanks you, because my daughter is struggling in that area
@@keannafrasier2785 what book do you use for algebra 2?
Use math to calculate your Risk
As a swing trader, my opinion on day trading is that it is to fast to plan well, and inevitably becomes an emotional thing for most people. On occasion, I have day traded, but only as a result of one of my swing trades gaining so much during the day that there was no point in holding it longer. There are some people who can make money day trading, but my bet is that statistics would show them to be relatively rare.
yos. i am really interested what you will say in the video.
Can you do a video on long-term investments?
sure I can do that:)
Just choose a growing sector and invest a few dollars in the top 100 companies. I think IT will always be growing, or you can invest in space travel and forget about the money for the next twenty years, maybe space tourism will be common then.
Some people might say you should invest in the most troubled sectors (right now that might be air travel or tourism) to maximize your profit after the sector returns to normal. But you have to keep in mind the more profits you have the more risky it is going to be.
Personally for me, I invested in stocks a couple of times, but all of them went down since. However I am going to wait until the companies bankrupt or recover.
However I have an experience of successfully investing in crypto currency.
Sir i completed my m.SC
I want to do phd from Kansas or Washington university
How I got admission please tell
i,sure, am fast Today
Father sorcerer, have you read the man who solved the markets and a man for all markets
Also, not knowing probability is crazy. You need to understand that losing money on a given day doesn't mean anything. You need to be able to see things statistically, not react to random movements.
There are two people in the market: those who lost money and liars who wont admit that they have lost money.
You are spot on. What's more important than winning is to cut losses. So many people fail because they don't know how to manage risk.
Edit: my friend who has a math degree failed Trading and lost 40k. On the other hand, my friend who didn't even go to college is consistently making profit and effectively managing risk
I appreciate your videos on how to deal with math, but you should consider posting more videos about math problems. It's more helpful if you have a better way to explain unlike many college professors do.
I'm a math major at UW-Madison, and the classes are pretty tough unlike other universities in the US.
Hello sir currently I'm preparing for the JEE exam. I'm having issue in coordinate geometry, more specifically if I say then that's straight lines. Idk why but that chapter is really getting on my nerves can u plss give me some tips?
I have been really "ok" with Maths until .... they brought the alphabet in!
I was quite excited for this video, but perhaps stay away from trading-based videos in the future. Technical analysis is complete snake oil. A better video would have been the math skills required to be a quant researcher/trader, e.g lin-alg, time series, stats, ml, ai etc. Source: quant trader for a big firm (citadel, JS etc).
I promise you, every professional quant trader has read this book.
Industry secret: TA does not work
rule #1 don't day trade
Doing day trading and technical analysis is poor advice, please don't do this. If you want to be an active trader make it your career. If not, use index funds and don't waste your day looking at noise, look instead for some other hobby that doesn't involve losing your hard earned money.
WOULD YOU COMB YOUR FUCKING HAIR???
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