Are there math courses in university that teach you how to invest in the stock market?
Question by Barthayn: Are there math courses in university that teach you how to invest in the stock market?
If there is courses that teach you this, can you give me a website so I can try out it out. I am plotting to go to TrentU in Ontario. So if you can link me a page on trentu.ca you get best answer!
Best answer:
Answer by Chand
You do not need university level mathematics to invest in the stock market. All you need is simple arithmetic. I doubt if any university would teach “investing math”, and even if they do, I can’t see the course being of much benefit.
The most vital principle of investing is “buy low, sell high”. The most hard parts are selecting the right stocks, and deciding when to sell.
Know better? Leave your own answer in the comments!
Category: Answers and Questions
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
Math is a prerequisite, by the side of with statistics, for a finance degree. You need at least college algebra before taking a finance course. Finance courses usually commence at the junior level, third year.
College is not necessary at all to invest in the stock market. But if you must, take accounting and finance classes. They’ll show you how to calculate return on equity, debt to equity ratios.
If you’re a rookie in investing or stocks, go to
http://www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as small money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through excellent and terrible times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Fantastic Depression.
That’s the benefits. You can sleep at night knowing your money is responsibility well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay excellent dividends too.
Then once you’re comfortable and test the waters of the market, you can finally place some real money in. Go to Scottrade.com. They’re exceptional for beginners.
If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a planet of professionals. I tried day-trading with Citigroup and AIG when they were a small bit over $ 1. I had some luck at first, making in this area $ 30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.
Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $ 100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every straightforwardly.
Excellent luck.
To be honest with you, investing in the stock market does not involve extensive knowledge of mathematics. On the divergent, I would not be surprised if the majority of the most successful investors had very small understanding of mathematics.
Most of the time, academics develop the models used in the securities industry because they have an interest in understanding how the stock market works but they have no interest in playing the trading game.
Also, let me warn you that there is no mathematical formula that can give you a concrete answer as to whether or not you should invest in a certain company. The factors caught up in that pronouncement are very subjective.