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I have been reading several forums and about investing in Stocks Market, and gathering information about different strategies, mainly Buy and Hold.

Now, as a mathematician (We are supposed to be proficient at statistics, probability, modelling...) I wonder is there is a branch (or group of advanced techniques) of mathematics-finances that deals with stocks market.

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  • Sorry you are quite late. There are loads of people who are miles ahead of you. – DumbCoder Dec 2 '16 at 14:21
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    Very few mathematicians that I know are at all proficient at statistics, probability and modeling... but the words you are looking for are Modern Portfolio Theory. – Dilip Sarwate Dec 2 '16 at 14:22
  • @DumbCoder There's always someone miles ahead of you. If that weren't the case, I would not ask for help. – D1X Dec 2 '16 at 14:22
  • You didn't understand what I meant. I meant is the effort of yours is against efforts of 000s with vaster resources at their disposal then you. So you think you can win alone ? Not saying it isn't possible but the odds are stacked against you from the start. So effort will be more. – DumbCoder Dec 2 '16 at 14:35
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    Assuming you want to learn about the markets (and not try to outperform them), quant.stackexchange.com may be what you seek. – user1731 Dec 2 '16 at 15:34
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Many branches of maths study the market, your question would need a lenghty answer. The mathematical problem with the behaviour of the stock markets is that their movements react to human emotions. Fear and greed as you probably knows.

So you need to find a mathematical branch specialised on irregular and chaotic behaviour. There are practical researchs being done nowadays in financial institutions with program trading, you can check it out searching the web. The objective is always to make money, that is greed disguised.

I would suggest you start by reading this article on generic algorithms.

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