Math behind every trading position

[Guest Marioabbati]

HI everyone,

I´m barely new in trading and I´d like to bring as much math as possible into it. What kind of math would you advice at a beginners level? I mean in terms of risk management, statistical forecasting, hedging and so on.

Thank you very much!

[Caseynotes]

2 hours ago, Marioabbati said:

HI everyone,

I´m barely new in trading and I´d like to bring as much math as possible into it. What kind of math would you advice at a beginners level? I mean in terms of risk management, statistical forecasting, hedging and so on.

Thank you very much!

Hi, you are correct, there is some very important math to consider concerning trading.

Have a look at this thread linked below and consider;

risk reward ratio, win rate, risk reward against win rate showing profitability, probability of sequential losing trades as it relates to % of account balance staked on each trade (risk management).

I wouldn't worry too much about hedging in the early stages unless you were looking to hold a very long term position through thick and thin, the rest of us just run away 🙂