Brainstorm: I don’t know math ?

How much math do you need to know for financial markets?

Hey everyone,

Part of becoming proficient in any domain involves digesting all the relevant literature to gain a comprehensive understanding of how things operate and how others perceive the domain. That's why I frequently post papers and books that provide highly technical breakdowns. You can find all of these in the following articles: link, link, link.

A question I frequently receive is, "All of the papers you share have very advanced math in them. Do I need to know high-level math in order to make money in markets?"

The answer really depends on what you're aiming to achieve. If you're striving to become a full-on Quant, then yes. However, around 95% of all traders in markets (probably more) only have a grasp of high school-level algebra, a class I, somewhat ironically, managed to fail back in the day. The truth is, even this level of math can suffice to build the majority of models.

Given the array of tools available today, it's quite feasible to get by without extensive mathematical knowledge. What's more crucial is understanding the principles and concepts presented in the papers and books I share. The majority of the time, I'm not working through super complex math formulas because I'm trying to understand the principles and ideas underpinning things.

A final note on coding and building models: there are plenty of people out there who can either build Excel models for you or code strategies in Python at very reasonable prices. What I would suggest, however, is finding someone through Twitter with whom you can forge a win-win relationship. If you possess coding abilities, try finding the best traders you know on Twitter and attempt to strike a win-win deal to code up some strategies that would be mutually beneficial. The same advice applies to those of you who are traders but don't know how to code.

Until you're in a position to hire someone full-time, seeking win-win partnerships is an excellent way to learn and grow. You'll begin to realize that people have their specialties, and it's not "bad" that your knowledge is very niche. You just need to find the right people to partner with.

Regardless if it’s markets or another domain, find exceptional people and work with them!

I touched on the principles surrounding the Quant and Trader relationship here. I also provided my current views of the market:

Thanks for reading!

In the information age, you simply need to be at the right place, at the right time, with the right information to succeed