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There are many mathematical tools that are used in analyzing the stock market, including things like path integrals and statistical mechanics . Does the application of these tools in financial analysis of stock market offer a practical advantage for individual investors who are self-taught in these matters? Can it greatly increase the likelihood of making significant profit? Are these tools used only in research purposes?

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If it could, it seems yet to be proven.

Long Term Capital Management was founded by a bunch of math whizzes and they seem to have missed something.

I'd never suggest that something has no value, but similar to the concept that "if time travel were possible, why hasn't anyone come back from the future to tell us" I'd suggest that if there were a real advantage to what you suggest, someone would be making money from it already.

In my opinion, the math is simple, little more than a four function calculator is needed.

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    I think LTCM is a little different from your average individual trader, though; I think the OP is asking if he can pick up a textbook, learn some of the math, and derive some advantage in everyday trading. Otherwise it's not really a personal finance question, right? (since I don't consider highly leveraged convergence trades really a personal finance topic) – John Bensin Sep 14 '13 at 18:34

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