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Can Mathematicians Beat the Markets?

Posted in Traders' Delusions, Submitted by Trading Critic on Mon, 2006-08-07 15:46.
If all it took to beat the markets was a Ph.D. in mathematics, there'd be a hell of a lot of rich mathematicians out there.

Does it take a genius to beat the markets? Can a mathematician act quickly in the fast moving forex markets or better yet, pick out the best stocks to invest in? The markets are all about numbers, percentages, mathematical valuation modelling and so on... So it should make perfect logical sense that if a mathematician tried their hand at trading the markets, they would find it easy to succeed in consistently beating the markets. But is it true?

Have you heard this quote?

If all it took to beat the markets was a Ph.D. in mathematics, there'd be a hell of a lot of rich mathematicians out there.

The quote is from Bill Dries a commodity trading advisor from "Futures" published on August 1995.

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