It would seem to me that being able to calculate risk, understand probability, and calculate pip value and translate that back into your account currency, all take an exceptional grasp of mathematics.
I think it only [U]seems[/U] like it would have to be “exceptional” to people who just aren’t familiar with it. Familiarity brings confidence, though it’s doubtless also true that [I]some[/I] initial understanding is necessary, in order to get as far as “familiarity”. I’d say that those things require only a “[I]competent[/I] grasp” of the relevant parts of mathematics.
Is being a math wizard necessary for good trading
I don’t think so. I think only competence is needed, rather than wizardry.
The rest comes with practice.
These terms are all a little subjective, and relative, I suppose. I see that some people have a [B]real[/B] blind spot with anything numerical, and I think it’s probably true that trading just isn’t, ultimately, going to suit them … but I think that such people are probably few and far between.
what are some tools someone can use to develop their understanding of the principles needed
This book may help you greatly: [I]The Mathematics of Money Management: Risk Analysis Techniques for Traders[/I] (Ralph Vince).
And on a simpler level, regarding working out things like position-sizing and so on, the books [I]Profitability & Systematic Trading[/I] by Michael Harris and [I]Trade Your Way to Financial Freedom[/I] (especially the second half of the book) by Van K. Tharp can also help.
Metronome said:
Thinking about this problem is leaving me more convinced of it being equivalent to a necktie paradox or two envelope paradox, of which I know some solutions but struggle to find them satisfying
Click to expand
Code:
The article aims to describe the main features of Forex trading as simply and quickly as possible, as well as share some basic ideas with beginners. It also attempts to answer the most tantalizing questions in the trading community along with showcasing the development of a simple indicator.
If you know where to enter and exit the market, you probably don't need to know anything else. Unfortunately, the issue of entry/exit points is an elusive one. At first glance, you can always identify a pattern and follow it for a while. But how to detect it without sophisticated tools and indicators? The simplest and always recurring patterns are TREND and FLAT. Trend is a long-term movement in one direction, while Flat implies more frequent reversals.
These patterns can be easily detected since a human eye can find them without any indicators. The main issue here is that we can see a pattern only after it has been triggered. Moreover, no one can guarantee there has been any pattern at all. No pattern can save your deposit from destruction regardless of a strategy. I will try to provide possible reasons for this using the language of math.
Author: Evgeniy Ilin
аналитика форекс gbp кaртa мирa форекс вспомогательные индикаторы форекс как платят налоги трейдеры валютного рынка форекс лучшие индикаторы для входа индикаторы измерения температуры щитовые дмитрий котенко форекс клипaрт для форекс имхо на форексе дц форекс брокер отзывы безрисковая комбинация форекс индикаторы рынка ферросплавов