The Mathematics of Financial markets.

There so many ways an methods to solving  the financial markets puzzle. It is like when you are given the final answer say 100.

The examination paper has a number 100 and the instruction is list down all the methods to derive the number 100?

A very simple question but with unlimited answers. 

One can start with simple ADDITION, MULTIPLICATION, DIVISION, INTEGRATION, DERIVATION, CALCULUS, ALGEBRA and the list goes on.

Did the exam say anything about simplicity or complexity? NO.

Even within using ADDITION to obtain 100, there are so many different numbers u can use.

In the financial market the answer all lies in simplicity. But unfortunately, the secular world strongly feels that a complex approach is more credible than the simple.

How is my answer going to be ? It is going to be 0 + 100 = 100 !!!!!

I will find the simplest and the shortest route to the answer of a question.

Give it to a mathematician, you might end up with a Nobel prize formula.

Give it a kid in Primary 1, you will get 0 + 100 and we still get the same results.

 

The financial world is still in a very primitive mode despite many "upgrading". Such "upgrading" are only superficial cosmetic without any changes to the core. Over the years we have seen how physical auctions upgraded to online bidding.

 

I have gone through the stage where I will write my orders on the chit sheet the stock, quantity and price. Pass the paper to the central buyer who will key in the order to be processed and wait for my orders to be filled before computer front end is deployed and consecutively followed by online to all.

There things remain unchanged 

BUYER QUANTITY, BUYER PRICE, SELLER PRICE and SELLER QUANTITY.

What was a physical bidding becomes ONLINE. The core remains.

 

The central core to the  market is PRICE. Some wants to predict like a fortune teller to the precision. The easy way out for me? 

THE TREND is your friend until it ends.

All I do is to work out a simple method to suit the above.