I am hopefully going to go into currency trading, I am just wandering in trading in general how much maths si involved I have heard you must be very numerate what type of maths is it and to ewhat level required, is it fast thinking arithmetic and probability or calculus and advanced maths? Nick

I'll bet that a nice well rounded education including subjects such as math, grammer, spelling and punctuation will help you in any venture -- including currency trading. JB

[1] Some traders use very extensive mathematical models to predict price movements (chaos theory, neural networks) [2] Some use complex but understandable to most college graduates who have taken calculus (intermarket spread relationships, option model pricing) [3] Some traders use simple-to-moderate math to calculate standard indicators (RSI, Stochastics, <insert your favorite indicator here>), but almost any trading platform you use will have these imbedded. [4] Some traders use no math at all and study only chart patterns. This also includes candlesticks, point-and-figure charting, etc. You should also understand the mathematics of risk/rewards, risk-of-ruin, optimal-f and other risk/performance-related parameters. Math is not that important. Discipline and understanding risk is very important. Good luck.

for numbers, figures. Many think it's very important and an asset to have good recall. I know this is not pure "math" so to speak. The memory is good to visualize a range and S/R levels before those who need charts.

quote: "...including subjects such as math, grammer, spelling and punctuation..." I think you were being sarcastic and if that was the case, I think that you might want to brush up on # 3 based on #2.

I have four terms of calculus up to differential equations (a real struggle for me) but think a thorough understanding of algebra is all that is essential.

well it seems it depends on the kind of trading you do. I usually say : keep it simple anyway. However imo you need to understand statistics and probabilities. Trading is about that. Evaluating risk of ruin, risk reward and the like takes only very basic understanding of statistics, but it is a major requirement imo. Even basic, I mean REAL understanding. If most traders would really understand the game they are playing is a loosing game they would change their plan. Most traders hardly see they play a negative expectancy game with odds against them (by their own choice by the way). I can safely say that since about 70% or more loose (hey ! that's a stat again). I agree with the discipline requirement though. No plan is good if you can't stick to it. tntneo