A Mathematician Plays the Stock MarketIn A Mathematician Plays the Stock Market bestselling 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 timetested 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 marketsor knows someone who does. 
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Review: A Mathematician Plays The Stock Market
User Review  GoodreadsWhat's really interesting about other people's reviews of this book is that they seem to expect a book on the stock market from a mathematician to be somehow be based in finance. There are plenty of ... Read full review
Review: A Mathematician Plays The Stock Market
User Review  Alex Lee  GoodreadsWhat's really interesting about other people's reviews of this book is that they seem to expect a book on the stock market from a mathematician to be somehow be based in finance. There are plenty of ... Read full review
Contents
Anticipating Others Anticipations  1 
Fear Greed and Cognitive Illusions  13 
Trends Crowds and Waves  37 
Chance and Efficient Markets  57 
Value Investing and Fundamental Analysis  85 
Options Risk and Volatility  117 
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Common terms and phrases
80 percent accounting assume behavior believe Benford's Law Bernie Ebbers beta bricks calls chance chatrooms coin flips common knowledge company's complexity course covariance decline dollars earnings Efficient Market Hypothesis equal example expected return expected value formula fundamental analysis funds golden ratio guess Handheld insider trading investment investors less lose Louis mathematical mathematician mean ment million moving average notion options Otto P/E ratio paradox patterns penny pick play player portfolio power law predict price movements probability pump and dump puts random rate of return reason result rise risk riskfree risky rules scam sell sequence shares Short and Distort shortselling sometimes standard deviation stock market stock price story strategy tails technical analysis theory tion tively treasury bills trend UUNet value investing variance vestors volatility Wall Street WCOM WCOMM week WorldCom worth