A Mathematician Plays the Stock Market

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Basic Books, 2004 - Business & Economics - 216 pages
12 Reviews
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.
 

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Review: A Mathematician Plays The Stock Market

User Review  - Goodreads

This was a fun and entertaining read. The author really liked giving anecdotes about his investing experience, and some unrelated math ones, too. I wouldn't rely on it too much for practical advice, or as an introduction to investing, but it is an entertaining read. Read full review

Review: A Mathematician Plays The Stock Market

User Review  - Goodreads

I had some insights, but not surprising being a complete layman in the field. Not recommended if you already know something about the stock market, and definitely not if you can't stand it that basic mathematical and statistical facts and calculations are being drawn out endlessly. 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
Diversifying Stock Portfolios
141
Connectedness and Chaotic Price Movements
163
From Paradox to Complexity
187
Bibliography
203
Index
205
Copyright

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About the author (2004)

John Allen Paulos received his Ph.D. in mathematics from the University of Wisconsin and is professor of mathematics at Temple University. Dr. Paulos has written a number of scholarly papers on mathematical logic, probability, and the philosophy of science. He is also the author of Innumeracy: Mathematical Illiteracy and Its Consequences, Beyond Numeracy: Ruminations of a Numbers Man , Mathematics and Humor , and A Mathematician Reads the Newspaper . He lives in Philadelphia with his wife and two children.

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