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Stock Analysis after FE

Joined
5/7/07
Messages
31
Points
16
Hi

Is it a realistic goal to aim for Stock analysis after FE? Will it actually help in any ways, if yes.
I am not sure about this. I am not too sure how stochastic helps stock analysis. Definitely stock prices being a part of uncertain world, stochastic should be applicable. But are financial firms actually using it? Or it is still the traditional methods getting used; to predict P/E s and all...

Please enlighten...

KG
 
Somehow, my impression is that most stock analysts are those with MBA or BS degree and have background in reading earning reports, financial statements, etc. And they cover individual stocks or a single sector.

If you refer to technical analysis, quantitative analysis then I don't see any reason why MFE graduates can't do that. In fact, they may be better suited for that.

I think your question is vague. Be specific. Are you sure you are not interested in MBA instead ?
 
You will be able to do stock analysis after FE. Just not every kind, only top level :)
 
Thanks for the responses.

Are stochastic processes used in technical analysis. To do technical analysis is still 'charts' the only way.

Kapil
 
I am not familiar with Technical Analysis.

Regarding Stochastic Processes, I have a book "Stochastic Portfolio Theory", haven't read it yet, but the title suggests that there are many applications of Stochasticity to portoflio theory.
 
Mostly, in MFE we study Stochastic Processes with regard to options, interest rate derivatives, credit derivatives etc.
 
Hi

Is it a realistic goal to aim for Stock analysis after FE? Will it actually help in any ways, if yes.
I am not sure about this. I am not too sure how stochastic helps stock analysis. Definitely stock prices being a part of uncertain world, stochastic should be applicable. But are financial firms actually using it? Or it is still the traditional methods getting used; to predict P/E s and all...

Please enlighten...

KG

Kind of a waste of a FE degree, I know history majors with no advance degrees who are stock brokers/analysts
 
If you want to be a broker or someone in this area, BA in Finance is enough :)
 
I know one stock broker, he only has a BS in something like Finance from ASU :) and is very happy.
 
Thanks a lot guys for the response.

As name of the book 'Stochastic Portfolio Theory' was mentioned. Let me share that in Fidelity (i am an Analyst here) this has come into light and people are trying to figure out how to use stochastic in Portfolio theory. I need some more knowledge on this. As I know FE helps in learning stochastic and it has a direct application to all real life problems assuming uncertain world. I personally want to explore - 'USE OF STOCHASTIC IN PORTFOLIO THEORY'.

Thanks again for all the responses.
Kapil
 
If someone figures out how to use stochastic processes in portfolio theory and make money :) that will be a success.
 
If someone figures out how to use stochastic processes in portfolio theory and make money :) that will be a success.

In the world of technical analysis, there is a popular technical trading rule by the name of Stochastics developed by George lane.

There are two versions of stochastics and they are called %k and %D respectively. The idea behind these technical trading rules is that rising prices are often accompanied by closes near the highs of the range, while falling prices are often accompanied by closes near the lows of the range. while prices which close near the middle of the range indicate a trendless market.

Most good ;)technical trading books should these two rules described.
 
In the world of technical analysis, there is a popular technical trading rule by the name of Stochastics developed by George lane.

There are two versions of stochastics and they are called %k and %D respectively. The idea behind these technical trading rules is that rising prices are often accompanied by closes near the highs of the range, while falling prices are often accompanied by closes near the lows of the range. while prices which close near the middle of the range indicate a trendless market.

Most good ;)technical trading books should these two rules described.

These has nothing to do with Stochastic Processes. Actually Stochastic K and D indicators are not even close to Stochastic Processes.
 
Absolutely, but I was trying to bring to the attention that simple technical trading rules do not equal to less usefulness. In fact, most empirical studies so far indicate that simple technical trading rules out-performance sophisticated financial time series techniques. Sorry for not clarifying at the outset.
 
Absolutely, but I was trying to bring to the attention that simple technical trading rules do not equal to less usefulness. In fact, most empirical studies so far indicate that simple technical trading rules out-performance sophisticated financial time series techniques. Sorry for not clarifying at the outset.

This is totally true.
 
You don't need a FE degree to be a good Stock Analyst..what you need is , as Andy said, a background in reading and analysing financial statements. I know here at CDP (Montreal) excellent stock analysts with only a BS-finance and Accountants with a Msc in Finance..
I would recommend a Msc in Finance and if you want to know more about stochastic take a course or two Not a msFE. In Fe you don't focus only on stochastic but also on programming, numerical analysis etc....My point is if you are not interested by the other topics teached in FE there is not point of doing a MSFE
 
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