What Math?

I was wondering what kind of math and what parts of it are most useful for gambling and investing?
What books do you math guys recommend or programs?
What basic math stuff is very useful to know here and what advanced stuff?

Thanks

Probability and statistics

Joking aside, you should really have the basic intuition of blackjack probability nailed down, and you probably won't be able to develop that until you start looking at the actual numbers that go into it. Michael Shackleford's Wizard of Odds is pretty much canon as far as discussion about blackjack probability and statistics goes. There's also a few programs you can download to help you run simulations and/or better understand the math involved, like Blackjack Sidekick or CVCX.

There are a number of things to consider when gambling. I'm guessing some of these apply to investing, but the latter might need additional actuarial-like maths.

Understanding of maths including probabilities, combinational analysis, some computing-like skills helps. For instance to understand Blackjack strategy it is best if you've worked it out for yourself (assuming infinite deck). To appreciate the House Edge on most bets, it's a matter of working out all the ways to get the various results, and add up the probabilities and payouts. Nowadays you can use a spreadsheet to do most of it.

I cannot comment too much on money management, risk of ruin etc., since that's not a part of analysis I do. It is something to be considered if you're trying to make money from a profitable opportunity. I imagine there are some formulae that are even more applicable to investing.

If you really want to delve deeper then you can try and analyse games where the exact combinations are needed (e.g. poker-based games or Blackjack with finite decks), develop simulation software etc. An understanding of computing tricks is useful here. Personally I have been looking at countability issues (from a game designer viewpoint).

Quote: jjjoooggg

Probability and statistics

Enough to get you into trouble, even in the real world of probability and statistics.

Ie, what if there is no mind? Analogous to there is no matter, but only equations or arrangements of matter.

“Concerning matter, we have been all wrong. What we have called matter is energy,
whose vibration has been so lowered as to be perceptible to the senses. There is no matter.” - Quote attributed to Albert Einstein

http://www.bibliotecapleyades.net/ciencia/ciencia_fisica45.htm

For investing, I would suggest very strong research skills (ability to understand financial reports, risks, trends, bias), excellent money management skills (knowing what risk you can handle and having enough money to invest with), an ability to minimize the rake from your investment company (you will lose money if the investment company is charging you a hefty price every time you buy and sell), and a network of trusted advisors (people who can confirm your way of thinking).

There is an interesting doc .pdf you can find in internet which is called "Fortune`s Fromula" The Untold Story" by William Poundstone... And the second is the "Elements of Information Theory" by Thomas M.Cover and Joy A.Thomas. I can tell a lot about these books, but better you trust me and try to find the review about them.. they are really interesting and useful especially for beginners.. I read them wwith a great pleasure. Generally there are a lot of different books I found in internet due to various recommendations from professionals on forums, but these two are the most informative and simple)))

Quote: Entirele

There is an interesting doc .pdf you can find in internet which is called "Fortune`s Fromula" The Untold Story" by William Poundstone... And the second is the "Elements of Information Theory" by Thomas M.Cover and Joy A.Thomas. I can tell a lot about these books, but better you trust me and try to find the review about them.. they are really interesting and useful especially for beginners.. I read them wwith a great pleasure. Generally there are a lot of different books I found in internet due to various recommendations from professionals on forums, but these two are the most informative and simple)))

Neither of those books are available for "free" as ".pdfs" on the Internet. You should pay for both of them.

Possessing a scalpel, doesn't make one a surgeon. Ah ha moment.

Quote: TheGrimReaper13

Enough to get you into trouble, even in the real world of probability and statistics.

Ie, what if there is no mind? Analogous to there is no matter, but only equations or arrangements of matter.

“Concerning matter, we have been all wrong. What we have called matter is energy,
whose vibration has been so lowered as to be perceptible to the senses. There is no matter.” - Quote attributed to Albert Einstein

http://www.bibliotecapleyades.net/ciencia/ciencia_fisica45.htm

Quote: jjjoooggg

Possessing a scalpel, doesn't make one a surgeon.

Yes, this is true. People make way too many assumptions of life/death. Rearrange scalpel to get cell sap. From a hero to a zero.

I miss the thinkers who became most famous for discoveries unrelated to their life's work, like Charles Janet, "(French: [ʒanɛ]; 15 June 1849 – 7 February 1932) was a French engineer, company director, inventor and biologist. He is also known for his innovative left-step presentation of the periodic table of chemical elements."

His essentially discarded periodic table is at the center of another raging debate in chemistry. Beyond this, he wondered about a zeroth element. I think that the first element is actually the third; that even though the table seems to grow by one proton at a time, that that's misleading as to its true nature or basis.

Oh.. sorry for the mistake((