Important Numbers and Equations for Investing

 


The Golden Ratio (Phi or Φ): 1.618 {1.61803398874989484820..}

The golden ratio is a number found everywhere in nature and in our universe. The golden ratio is widely used in technical analysis in order to determine if and when a financial market will continue its trend or reverse. 

» More at Wikipedia 

 

Fibonacci Sequence of Numbers

The Fibonacci sequence of numbers is very important for stocks investing and linked with the Golden Ratio. The name Fibonacci sequence was first introduced in the 19th century by Édouard Lucas, although the history of this sequence of numbers starts many centuries before Jesus Christ. Every number in the sequence is calculated by adding up the two numbers before it. The Rule is X(n) = X(n-1) + X(n-2)

Here are the first numbers…

1

2

3

5

8

13

21

34

55

89

144

233

377

610

987

1,597

2,584

4,181

6,765

» More at Wikipedia 

 

Archimedes Constant (Pi or π): 3.14 {3.1415926535..}

Archimedes constant is the name given to the ratio of the circumference of a circle to the diameter. Pi is the key constant in any equation that involves circular or harmonic motion.

» More at MathWorld 

 

Euler's Number (e): 2.7182

Euler's number which is also called as the exponential growth constant, is the base for natural logarithms. In finance, Euler's number is very important and used to determine the compound interest.

» More at Wikipedia 

 

The Black–Scholes model

This model was developed by Fischer Black and Myron Scholes, and later expanded by Robert Merton. Black and Scholes won the 1997 Nobel Prize in Economics for their discovery. This single equation helped in order to create the global derivatives market.

» More at Investopedia

 

Important Numbers and Equations

Capitalinvestor.org (2013)

FacebookTwitterDiggStumbleuponGoogle BookmarksLinkedInPinterest

How the Economy Works Video

FXCC Forex Trading

Trading Bonus

100% JUSTFOREX WELCOME BONUS (UP TO $20,000, WITHDRAWABLE)

JustForex offer 90 Forex pairs and 39 cryptocurrency pairs. Currently, JustForex offer a 100% Welcome Bonus (you can withdraw both the bonus, and the profits of the bonus)

START HERE:

100% JUSTFOREX WELCOME BONUS 


$50 FBS NO-DEPOSIT (FREE) BONUS 

Profit received on the bonus funds is withdrawable after 2 lots are traded, and profit reaches $25 or more

START HERE:

$50 FBS (FREE) NO-DEPOSIT BONUS

Go to top