Archive for January 29th, 2016

Math Trix: The case of the gifted stock-picker…

January 29, 2016

I’ve been reading a book called How Not to Be Wrong: The Power of Mathematical Thinking by Jordan Ellenberg

The author recounts a classic stock advisor scam that goes like this …

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One day, you receive an unsolicited newsletter from an investment advisor, containing a tip that a certain stock is due for a big rise.

A week passes, and just as the Investment advisor predicted, the stock goes up.

The next week, you get a new edition of the newsletter, and this time, the tip is about a stock whose price the adviser thinks is going to fall.

And indeed, the stock craters.

That’s good, but it gets even better …

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