In A Mathematician Plays the Stock Market best-selling author John Allen Paulos demonstrates what the tools of mathematics can tell us about the vagaries of the stock market. Employing his trademark stories, vignettes, paradoxes, and puzzles (and even a film treatment), Paulos addresses every thinking reader's curiosity about the market: Is it efficient? Is it rational? Is there anything to technical analysis, fundamental analysis, and other supposedly time-tested methods of picking stocks? How can one quantify risk? What are the most common scams? What light do fractals, network theory, and common psychological foibles shed on investor behavior? Are there any approaches to investing that truly outperform the major indexes? Can a deeper knowledge of mathematics help beat the odds?
All of these questions are explored with the engaging erudition that made Paulos's A Mathematician Reads the Newspaper and Innumeracy favorites with both armchair mathematicians and readers who want to think like them. Paulos also shares the cautionary tale of his own long and disastrous love affair with WorldCom. In the tradition of Burton Malkiel's A Random Walk Down Wall Street and Jeremy Siegel's Stocks for the Long Run, this wry and illuminating book is for anyone, investor or not, who follows the markets-or knows someone who does....Continua
From the sheer fact that the author keep buying one stock only, and this stock is WorldCom... we may simply call this book "A Mathematician Played by the Market".
Some very interesting and important mathematical tools and concepts are discussed in this book.
1. Arithematic Mean vs Geomatric Mean...Continua
A book about how an scholar attempt to win the stock market. Including, probability, chart diagram, statistic approach, Monte Carlo and fundamental analysis.
You cannot find the sure-win strategy. But you can find the incapability of each approach. If you're logical person and increase in math, you will find this book quite interesting....Continua
The synopsis starts with: "Could a maths expert outwit the stock market and make millions? John Allen Paulos, one of the world’s most renowned mathematicians, decided there was only one way to find out: to take a gamble on the investment game himself. But he soon discovered that even a maths guru can’t beat the market, and making the numbers add up was far harder (and more addictive) than he could ever have imagined."
He who wrote this synopsis obviously had not read the book, otherwise he would have known that Paulos plunged into the stock market and lost spectacularly, before writing this book partly to examine what and why he did wrong....Continua
I couldn't finish it. As smart as the author is, his probabilistic analysis of capital markets does not ring true to me. Yes, from a purely academic point of view, the markets can be random and utterly unpredictable - but we all know in reality that markets are not perfect and smart investors really can play the markets. I cannot distinguish the author's nifty analyses from what people study in college, i.e. theories that are branded as largely useless in the real world....Continua