Ethan asked:


Would an example be the Kyoto Protocol? Or Free Trade Agreements?

If so, what are some other examples of strategies?

Thanks so much.
This is not homework. It is background information for study. I can’t find any clear examples on the internet.

Steve C asked:


The American stock exchange is the most stable and secure in the world (for the time being). Every weekday, hundreds of billions are exchanged without any sort of tax on the transactions. We pay sales and use tax when we buy other capital assets (then subject to capital gains or losses upon sale) but Wall Street is treated as a sacred cow. A transaction tax would serve to further stablize the markets since no one would be inclined to invest in short-term strategies. I believe a transaction tax needs to be studied and considered as a way of allowing our income tax code to be made much simpler than it is today. The so-called Flat Tax and Fair Tax (National sales tax) would only shift most of the tax burden to the poor. I mean do you really want to pay 10 or 20 percent of profit to the government when you sell your home?

swtsabre asked:


The required returns on all stocks are the same, and the required returns on stocks are higher than the required returns on bonds.

The required returns on stocks equal the required returns on bonds.

A trading strategy in which you buy stocks that have recently fallen in price is likely to provide you with a return that exceeds the return on the overall stock market.

If you have insider information about a particular stock, you cannot expect to earn an above average return on this information because it is already incorporated into the current stock price.

Even if a market is semistrong-form efficient, an investor could still earn a better return than the market return if he or she had inside information.

LuckyLove8 asked:


With the advent of the internet and home investing, anybody with the money can invest in futures, cfds, options, bonds or even plain old stocks on all major financial markets.

Given that trading is still inherently a game of probability, odds and strategy. Is the international financial market the greatest casino ever devised??

agesilus asked:


The combined profit for the two companies was close to $17 billion—$9.08 billion for Shell and $7.6 billion for BP. These figures include earnings attributed to the rise in oil prices. If this rise is factored out (as is done in the so-called current cost of supplies figures), Shell’s profits were $7.8 billion and BP’s were $6.6 billion. That is, at least $2 billion in profit for the two companies can be attributed solely to the recent rise in oil prices.

Analysts expect the profits for Exxon Mobil, the largest private energy company, to soar to $11.2 billion in the first quarter, an increase of 22 percent over 2007. If the company’s profits exceed expectations, however, it could beat its fourth quarter profits from 2007 of $11.66 billion—the record for a US company.

Of course, the top executives and investors will benefit enormously from these windfalls. Exxon CEO Rex Tillerson received an 18 percent raise in 2007, pulling in $21.7 million. The oil companies will also give back billions to investors in the form of stock buybacks and dividends.

The news from Shell and BP came as a surprise to analysts, who have been concerned about profit troubles in the refinery component of production, which transforms crude oil into useable products like gasoline and diesel. Giants like Shell and BP, and US companies Exxon and Chevron, are vertically integrated, including in their operations both oil extraction and refining.

While the Bush administration cites a lack of refineries for energy shortages, internal oil industry documents show that five years ago companies were looking for ways to cut refinery output to boost profits.

It takes about four years to build a large refinery so any substantial additional new capacity from new plants would have had to begin by the mid-1990s, energy experts acknowledge.

Internal documents from some of America’s biggest oil companies suggest higher prices at the pump may, in part, be a result of a deliberate strategy to limit domestic gasoline production,”These documents say point blank, look if you really want to boost your profits, you have to reduce refinery capacity,” said Sen. Wyden. “This industry went to great lengths to limit refinery capacity, control markets, restrict supply to boost their profits, increase costs to consumers, and then argue we should relax environmental laws.”
One Chevron memo warns the oil industry would never see higher profits, if it didn’t reduce the amount of gasoline being refined.

“If the U.S. petroleum industry doesn’t reduce its refining capacity, it will never see any substantial increase in refinery margins (profits),” said an internal Chevron document in November 1995.

The memo cited warnings given about refinery profits by a senior analyst from the American Petroleum Institute, the industry trade group, at an industry conference that year.

API spokesman Jim Craig said Thursday, “We don’t know about these alleged internal company memos, but the idea that the API would warn member companies on profits is ludicrous.”

A year later, an official at Texaco, in a memo marked “highly confidential,” called concerns about too much refinery capacty “the most critical factor” facing the refinery industry - resulting in “very poor refining financial results.”

The Texaco memo, written in March, 1996, concluded that “significant events” were required to deal with the excess refinery capacity problem and suggested one solution might be to get the government to lift clean air requirements for an oxygenate in gasoline. Removal of the additive would require more gasoline to be used in each gallon of fuel, tightening supplies.

OzTrader asked:

Commercial disposal of listed trading aid and resistance strategies http://www.learntotradethemarket.com of currency

sgomez858 asked:

Day l? Live online trading in real time. Watch and learn from this v? Deo tips and strategies as demonstrated during the Day of Commerce. I don 't use a trading system. Business discretionary use software filters and an? Lysis t? Cnico. C? Mo best d? To trade for small profits he is my constant goal for this particular class of the v? Deo. The information? No, I is that? for education? n only. Daytrading for life is not a f? Cyl. It is something that takes a lot of training.

pps p asked:


1.OPTION VOLUME:

– As a Indicator,wHAT DOES Option Volume says about future price Movements?
– What does High/Low Option volume says?
– When usually High/Low option volume occurs?Can u give some circumsatances at which High/Low Option volume occurs?

2.Volatility:

a. IMPLIED VOLATILITY (IV):

—What does High/Low Implied Volatility (IV) reading says? Does it gives any signals?
—If “Yes” to the above question,Does that IV reading has any correlation with price of stock inorder to Ensure that the

provided signals ( By IV) are not fake.
—At what circumstances Implied Volatility become unusual High/Low?Can you Give some circumstances?
—Does IV provides Buy and sell signal for option trading?Please explain in simple and clearly.
–Does IV provides the direction>?Like is it going to bullish or bearish or sideways?

b. HISTORICAL VOLATILITY (HV) AND IMPLIED VOLATILITY (IV) RELATIONS:

—Is there any rules like HV should be above or below IV ? or any RULES LIKE IV located above HV?
—If “YES” to the above question, what is the signal it provides when HV is located above IV (or)IV located above HV.
–dOES cRossovers of HV and IV provide any signals?

3.LIQUIDITY:

—cAN YOU TELL ME ANY SIMPLE STRATEGY (Other than Volume) to measure the Liquidity of Stock option?
—I hear one friend saying:measuring liquidity from Bid/ask spread…..But his explanation is not making me

understanding….If you really know answer, Please explain to me in simple and clearly….
—does Liquity provides Buy and sell signals? Please explain in simple and clear way.

4.Suggestions:

If you have your own experience of the following for the option trading,please explain to me in simple way.

—Forecasting the direction?Like Bullish or bearish or sideaways?
—Entry and exit signals of option trading.

Thank you.

lucstudent asked:


I’ve been testing out two trading strategies lately, and here are my results.

Strategy 1
Profit to Loss Ratio
1 : 1.5
Chance to Profit
85 percent

Strategy 2
Profit to Loss Ratio
2.5 : 1
Chance of Success
60 percent

If both strategies are applied on the same day in order to hedge Strategy 1 against Strategy 2.

What is the chance of both strategies succeeding?
What is the chance to breakeven?

Thanks

mike9626 asked:


I’ve been using basic option strategies for a while now, but mainly as a substitute for buying or selling stock(less risk, cheaper, leverage etc). But I would like to start learning about Delta neutral trading strategies. So is there a way to figure out the exact delta of an options contract at any time, is it based on closing prices, etc. Thanks