I was reading some stuff, and I was wondering, how would being able to compute the mean, variance and regression be related to stock prices? What can I actually do with those tools?
Get a good book on Statistics and be able to compute the usual measures of mean, variance, and regression in it.
When suggesting to buy a stock or not, what would one exactly mean by "Have you counted and tested that?" What could I possibly test/count (using statistical tools)?
You'll not only have a proper basis for making statements about the relations that matter in markets, but even more important, you'll have a basis for rejecting those that don't. When someone suggests a trade or procedure, always ask the question, "Have you counted and tested that?"
closed as off topic by Norbert, Ｊ. Ｍ., Austin Mohr, Micah, Jim Apr 26 '13 at 4:22
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