Trying to make superior trading returns using tecnical analysis or fundamental analysis of shares is self-defeating - Essay Example

Comments (0) Cite this document
After providing a brief overview of each of them it tries to investigate the link their link with superior trading returns.
As long as financial markets have existed,…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
Trying to make superior trading returns using tecnical analysis or fundamental analysis of shares is self-defeating
Read TextPreview

Extract of sample "Trying to make superior trading returns using tecnical analysis or fundamental analysis of shares is self-defeating"

Download file to see previous pages In comparison to their peaks at the end of 2007, the Dow Jones Industrial Average Index and the DAX index have dropped almost 50% in value. Considering recent events many investors have reconsidered the concept of fair value of a stock and the efficiency of techniques used. In addition to this, the approach applied by many academics on Technical and Fundamental Analysis1 and of Efficient Market Hypothesis theory, rather than on how to forecast, has induced us to base the structure of this essay on a similar approach. Therefore in Section 1, 2 and 3 after providing a brief overview of FA and of TA the EMH theory, we have explored alternative views and discussed the validity of the statement in object. After illustrating the need for analysts to create efficiency in Section 4 we have explored the extent to which FA, TA or EMH may be essential to achieve market efficiency. Finally, after examining in Section 5 the Stiglitz-Grossman paradox, in Section 6, we have explored anomalies and invalidities of EMH and presented our conclusions.
FA found its existence in the firm-foundation theory developed in the 1930s though it was later popularised by Graham. Its purpose is to find and explore all economic variables measuring different economic circumstances and influencing the future earnings of an economic asset. Clearly the philosophy behind FA is that in the end, when enough traders realize that the market is not correctly pricing the asset, the market mechanism of demand/supply, will force the price of the asset to converge to its fundamental value. Early writers on the subject of security analysis assumed that the essence of investing was to determine the "true," "intrinsic," or "fundamental" value of a security and that this value could differ from the current market price. Graham and Dodd (1934) first highlighted the concept of the intrinsic value of a security as a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Trying to make superior trading returns using tecnical analysis or Essay”, n.d.)
Trying to make superior trading returns using tecnical analysis or Essay. Retrieved from
(Trying to Make Superior Trading Returns Using Tecnical Analysis or Essay)
Trying to Make Superior Trading Returns Using Tecnical Analysis or Essay.
“Trying to Make Superior Trading Returns Using Tecnical Analysis or Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Trying to make superior trading returns using tecnical analysis or fundamental analysis of shares is self-defeating

Self Analysis

...A self analysis from a sociological perspective I had been working in Tokyo Japan for four years after my graduation. Being a thrifty saver runs inour family and I was definitely no different. As soon as I got my job, I would live on a minimum possible income and save the rest. For the first couple of years, I saved; I was not saving with anything in mind. I did have some concepts of retirement and saving for a rainy day, but nothing immediate. But then about three years into my job, I really started thinking about going for higher studies in the United States. It was not that I thought their universities were better than ours or their quality of education. I just wanted to experience the culture of the...
3 Pages(750 words)Personal Statement

Technical trading analysis

...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, then fundamental as well as technical analysis is also ineffective because all publicly available information has been thoroughly analyzed, assessed and acted upon. Finally, in a Strong Form EMH, current prices fully reflect all information, and not just that information which is to be found in the historical trading pattern or available publicly. Thus, if the Strong Form holds true, any attempt to make profitable...
10 Pages(2500 words)Essay

Self Analysis

...the ethically right thing to do varies from context to context virtue ethics and feminist ethics do not make universal claims. Therefore, when there is no universal right and wrong, there is no objective ground for absolutely ruling out certain actions and behaviors. This concept must be the reason why many governments and organizations maintain cultural relativist laissez-faire approach toward FGM. Of course, it is hard to define the ethical parameters in which one should act, because right and wrong is apparently ambiguous. According to the opinion of Prinz (2007), we condemn actions that lead to the suffering of others, because we sympathize with the victims even if they are far away. A person who is...
5 Pages(1250 words)Essay

Self Analysis

...SelfAnalysis Of Writing and Experience Introduction Writing is a skill which can be honed over time. It just takes a good grasp of the English language, an artistic flare, a degree of creativity and imagination, and a genuine interest for writing. However, as can be expected from this kind of theoretical discipline, writing follows a set of rules to guide practitioners into the correct line of thought and discourse to ensure a sense of reward and success in this field. The course proffered student learning outcomes and written communication hallmarks which we use as a guide to gauge personal progress on the module. In this regard, upon close review and evaluation of the skills honed...
4 Pages(1000 words)Essay

Self analysis

...will also help, as both of us can enjoy remembering details of our experiential learning. As a Kinesthetic learner, I crave to do things so I can understand them better. For me, experience is always the best teacher, as I get to use most, if not all my senses in learning. The Humanmetrics Test I took yielded an ISTJ profile for me. People who belong to this personality type are described to be ambitious, loyal, responsible, modest, traditional and conventional, sensible, thrifty, careful and wise with both money and possessions. ISTJ people also see projects through to the end and are good time managers. We are considered good and prudent stewards of resources and can be reliable as we...
14 Pages(3500 words)Essay

Stocks Returns Investment Analysis a small cap as it is greater than the critical value of 0.5. However, HML could not explain well due its higher p-value. Recommendations The above analysis shows that the excess returns of four stocks, namely MYR, BHP, QBE and DJS, are explained by the excess market returns only. The stock TAH showed a relatively independent excess return behavior, so that none of the Three Factors determined its excess returns behavior. QAN’s excess returns are, however, predicted by excess market returns and SMB. It is recommended that except TAH, all other 5 stocks should be taken into consideration for the portfolio construction....
4 Pages(1000 words)Essay

Self Analysis

...the world, get to know more about different cultures, and attempt to see the world in other people’s perspectives. I am curious about the Muslims, the Jews, and even the Buddhists. I guess if I further explore the third window, I will be led to a better knowledge of the world and a better understanding of my existence. The fourth window, which contains qualities and truths about me that neither I nor others know, is yet to be explored. I hope that this portion of my self is filled with good marks. In any case, I would love to know what this window contains in order to make myself a better person. Compared to the three windows, this one hides all my fears and uncertainties, my passion and dreams, some of...
3 Pages(750 words)Essay


...Answer The four important values that are intrinsic to relationship building are: honesty, trust, integrity and responsibility of actions. I believe that these values significantly contribute to a relationship. My values are expressed through various modes of interpersonal communication, vis-à-vis behavioral pattern, language used and nonverbal means of contact. Regular communications helps to clear ambiguity and conflicts of views (Stewart, 2012). Sharing household chores and having good discussions at home with family not only reduces stress but also strengthens interpersonal relationships. Being friendly with children is important as it increases trust and promotes honesty within relationship. Answer 2 In work relationships... ...
2 Pages(500 words)Essay

Trading and Technical Analysis

...a period of time, making historical information become increasingly significant in the analysis. When making purchases in trading deposits must be made in full amount before a transaction can be completed. Additional funds can however be added if the presented funds are not enough for the transaction. Additional fund a must be added within seven days of the trading period. Amounts deposited after the trading period cannot be accepted in undertaking the transaction. Uniform comparison refers to the comparison of markets through the utilisation of fundamental and technical analyses. This involves the utilisation of...
2 Pages(500 words)Assignment


...Self-Analysis EAS Temperament From the EAS Temperament, I have learned that temperament is a biological determinant of personality trait. Biologists and psychologists have established a significant connection between childhood personality traits and adulthood. From observing the EAS Temperament, I established the meaning of the scores and how they can influence future careers, personal relationships, study habits and work or health. In particular, the scores help describe how a child is attached to the immediate environment, such as their level of fear or excitement – emotionality. An adult with high emotionality may be connected to art, relationships and career choices. Active children have a high...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Trying to make superior trading returns using tecnical analysis or fundamental analysis of shares is self-defeating for FREE!

Contact Us