Trading System Research Paper Example | Topics and Well Written Essays - 2500 words

Trading System - Research Paper Example Similarly the fund would not wait for the market to bottom out before taking a decision on going long and that it would go long once market moves down somewhere between the peak and the bottom. Either strategies would imply that the fund is not looking for excessive and speculative gains; nevertheless it does maintain inherent profit booking targets. The trading system explained below is based on trading rules that were tested for profits results based on this risk philosophy. Financial theory, taught in finance textbooks the globe over, normally exposes a student of finance to the concepts like the efficient market hypothesis and the economically rational individual. Bubbles and crashes seem to defy these two seminal concepts with an awkwardness equivalent to the awkwardness one would attach to those things on earth that defy gravity. Nevertheless such extreme stock market movements are a reality. Bubbles make investing decisions arduous as stock prices tend to deviate by substantial margins from their fundamental valuations. Investors relying on past company results and technical analysis are equally defeated in such situations as is the EMH.In fact, investors always act on the basis that they have an applicable construct to explain stock price movements and tend to input all available information collected under such constructs in their investment decisions (Poole 2000). Finance research has also held varying opinions on this issue. For instance, Bierm ann (1995) supports the idea that market prices are determined from backward looking investors than by those that indulge in predictions of all sorts. Others have, for example elaborated on the use of price to earnings ratios to determine excess market valuations. Some technical work has set to rest in a convincing manner the phenomenon of bubbles and bursts. For instance, Graham (1973) describes in details why markets fluctuate and how to deal with the violent fluctuations .Graham discusses five basic points to read into cross sectional view of market bubbles. Most of these points concern factors like growth and earnings and their impact on price movements and price levels. Graham (1973), in fact, provides a much better viewpoint on gauging market bubbles through an adaptive expectations model.The Efficient Markets Hypothesis (EMH) states that current prices always 'fully reflect' available information, so that the only reason prices change between time t and time t+1 is the arriva l of new information. The EMH requires that only two necessary conditions be met. First, the market must be aware of all available information .The type of information available is determined by the strength of the EMH being tested. In a Weak Form EMH, current prices entirely reflect all that can be known from the study of historical prices and trading volumes. If the Weak Form is valid, technical analysis becomes ineffective. Any information contained in past prices has been analyzed and acted on by the market, so that shares are neither under-valued nor over-valued. In a Semi- Strong EMH, current prices efficiently adjust to information that is publicly available. If this form of the hypothesis holds true,

How We Ourselves Are Destroying the Planet and Future Ways to Prevent Research Paper

How We Ourselves Are Destroying the Planet and Future Ways to Prevent Such - Research Paper Example For example, smoke and dusts coming out of motor vehicles, e-wastes, nuclear wastes, chemicals like DDT, pesticides etc are examples of manmade environmental hazards whereas floods, cosmic rays, ultraviolet rays etc are some of the naturally occurring incidents which destroy our earth. Nuclear waste disposal is another thing which destroys our earth. Destruction of forests for heavy industrialization and injudicious industrial procedures are some other factors which give momentum to the destruction of our earth or environment. It is difficult for us to take drastic steps for the protection of our earth even though we talk loudly about the necessities of protecting our environment. In simple terms, protection of earth means allowing all natural things to remain as it is. But it is impossible for us to avoid the facilities offered by heavy industrialization. Nobody would like to walk 10 kilometers instead of using a taxi in the name of environmental or earth protection. However, it is an accepted fact that earth may not survive longer periods if we continue our selfish activities as we do at present. This paper briefly analyses the ways in which we destroy our environment and the possible solutions to avoid the destruction of earth. ... Human has realized the importance of forests in keeping a balanced climate on earth only in the recent times. Trees absorb the dangerous carbon dioxide from atmosphere and liberate more useful oxygen to the atmosphere. For sustaining life on earth, the percentage of carbon dioxide and oxygen in the atmosphere should obey certain ratio. Trees, which helped us to keep the balance between the oxygen and carbon dioxide in the atmosphere, faced heavy destruction in the recent past and from there onwards the destruction of the earth started. Nuclear waste disposal is another way of destruction of earth. Nuclear wastes or Radioactive wastes  are normally classified as low-level, medium-level or high-level wastes, according to the amount and types of radioactivity in them (Waste Management, 2007). It may contain harmful radiations like alpha, beta and gamma which can penetrate deep in to our skin and create lot of health problems. Safe disposal of radioactive waste is a major problem faced by the current world. Because of the extended life and the deep penetrating power, it is suicidal to dispose radioactive wastes on earth. Reports from the European press states that Soviet Union is secretly dumping nuclear reactors and radioactive waste into the bordering seas (Rao,n.d, p.1). In other words, prominent countries are disposing nuclear wastes in the proximity of their enemy countries as a strategy to cause problems to the enemy country. Such tactics are not only causing problems to the innocent people, but also to the living things as a whole. The National Aeronautics and Space Administration (NASA) came up with a scheme for sending radioactive waste into this heliocentric