Stock Mechanics: a classical approach

TL;DR

This paper introduces a classical mechanics-inspired mathematical framework for modeling stock market behavior, proposing simple closed-form expressions for stock prices and demonstrating their application in portfolio growth.

Contribution

It presents a novel classical mechanics approach to stock market modeling with simple mathematical expressions for price movements and portfolio growth.

Findings

Proposes a new mathematical model for stock prices based on classical mechanics.

Demonstrates the model's effectiveness in portfolio growth in real markets.

Provides simple closed-form expressions capable of generating various price trajectories.

Abstract

New theoretical approaches about forecasting stock markets are proposed. A mathematization of the stock market in terms of arithmetical relations is given, where some simple (non-differential, non-fractal) expressions are also suggested as general stock price formuli in closed forms which are able to generate a variety of possible price movements in time. A kind of mechanics is submitted to cover the price movements in terms of classical concepts. Where utilizing stock mechanics to grow the portfolios in real markets is also proven.