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A Reflection of Lessons from Trading Simulations

A Reflection of Lessons from Trading Simulations

Introduction

Provide a key brief of what the trading simulation was all about.

Define trading simulations and importance to business-related professionals (Zhang, Zohren, & Roberts, 2020).

Structure of the report

Data Analysis

Analyze data from your own trading history

Give a brief history of what you did and how you did it

What informed your key decisions?

What criteria did you make in decision making?

Would you change anything now that you have gained experience on key trading strategies?

What literature did you use to inform some of your decisions?

Summary of the key takeaways from individual trading history

Demonstrate an Understanding of Trading Strategies

Define trading strategies

Mention types of trading strategies

Which key trading strategies do you regard as best practices and why?

Considerations of relevant trading issues (such as, but not limited to, profits/loss, risk, etc).

Literature review (synthesise and blend Material) on key and relevant trading issues

Key

Congruence with your own experience

Linking Personal Observations with Theory and Empirical Evidence

Why simulations vary

Behavioral aspects of trading

Profitability: What is it and how does it impact trading?

Risk: What is it and how does it impact trading?

Liquidity: What is it and how does it impact trading?

Price Impact: What is it and how does it impact trading?

What are you personal definitions of the above and how did they impact your simulation exercises?

Limitations of Simulation

Acknowledge key limitations of your simulation and analysis

How did they impact the entire exercise?

Literature Review

Introduction

Brief overview of liquidity risk

Structure of the literature review

What is Liquidity Risk?

Provide definition from the perspective of various scholars

Funding liquidity risk

Market liquidity risk

Issues in Liquidity Risk and Crisis

A liquidity crisis occurs when demand for liquidity rises while supply falls across a large number of financial institutions or other enterprises. (Discuss)

Widespread maturity mismatches across banks and other enterprises are at the basis of a liquidity crisis, resulting in a scarcity of cash and other liquid assets when they are required. (Discuss)

Large, negative economic shocks or typical cyclical fluctuations in the economy may both generate liquidity crises. (Discuss)

Sources of Liquidity Risk

Lack of Cash Flow Management. Cash flow management gives a business good visibility into potential liquidity challenges and opportunities. …

Inability to Obtain Financing.

Unexpected Economic Disruption.

Unplanned Capital Expenditures.

Profit Crisis.

Causes of Liquidity Issues

Major causes according to extant literature

Liquidity risk management 

Ways to manage liquidity risk

Key Takeaways From Review of Literature

Liquidity defined.

Liquidity risk categories

Rudimentary indicator of liquidity

References

Abdella, J., & Shuaib, K. (2018). Peer to peer distributed energy trading in smart grids: A survey. Energies, 11(6), 1560.

Abouloula, K., Habil, B. E., & Krit, S. D. (2018). Money management limits to trade by robot trader for automatic trading. International Journal of Engineering, Science and Mathematics, 7(3), 195-205.

Kyriazis, N. A. (2019). A survey on efficiency and profitable trading opportunities in cryptocurrency markets. Journal of Risk and Financial Management, 12(2), 67.

Rundo, F. (2019). Deep LSTM with reinforcement learning layer for financial trend prediction in FX high frequency trading systems. Applied Sciences, 9(20), 4460.

Tushar, W., Saha, T. K., Yuen, C., Smith, D., & Poor, H. V. (2020). Peer-to-peer trading in electricity networks: An overview. IEEE Transactions on Smart Grid, 11(4), 3185-3200.

Zhang, Z., Zohren, S., & Roberts, S. (2020). Deep reinforcement learning for trading. The Journal of Financial Data Science, 2(2), 25-40.

Zhou, Y., Wu, J., Long, C., & Ming, W. (2020). State-of-the-art analysis and perspectives for peer-to-peer energy trading. Engineering, 6(7), 739-753.

Tavana, M., Abtahi, A. R., Di Caprio, D., & Poortarigh, M. (2018). An Artificial Neural Network and Bayesian Network model for liquidity risk assessment in banking. Neurocomputing, 275, 2525-2554.

Febi, W., Schäfer, D., Stephan, A., & Sun, C. (2018). The impact of liquidity risk on the yield spread of green bonds. Finance Research Letters, 27, 53-59.

Ahamed, F. (2021). Determinants of Liquidity Risk in the Commercial Banks in Bangladesh. European Journal of Business and Management Research, 6(1), 164-169.

Mohammad, S., Asutay, M., Dixon, R., & Platonova, E. (2020). Liquidity risk exposure and its determinants in the banking sector: A comparative analysis between Islamic, conventional and hybrid banks. Journal of International Financial Markets, Institutions and Money, 66, 101196.

Goodhart, C. (2008). Liquidity risk management. Banque de France Financial Stability Review, 11, 39-44.

Brunnermeier, M. K., & Yogo, M. (2009). A note on liquidity risk management. American Economic Review, 99(2), 578-83.

Cornett, M. M., McNutt, J. J., Strahan, P. E., & Tehranian, H. (2011). Liquidity risk management and credit supply in the financial crisis. Journal of financial economics, 101(2), 297-312.

Vento, G. A., & La Ganga, P. (2009). Bank liquidity risk management and supervision: which lessons from recent market turmoil. Journal of Money, Investment and Banking, 10(10), 78-125.

Binge eating

Student’s name

Professor

Course

Date

Answers

This disorder can be contracted from anorexia nervosa in that a severe amount of weight is not lost.

Answer: Binge eating

Someone whose desire to inflict pain during sex can be causes marked distress can be diagnosed with a;

Answer: Pedophilic disorder

This is classified as an orgasmic disorder in the diagnostic and statistical manual of mental disorders

Answer: Bulimia nervosa

This involves quickening of the latter part of the sexual response cycle

Answer: Premature ejaculation

Voyeuristic disorder is an example of

Answer: Paraphilic disorder

Essay

Premature ejaculation being one of the categories covered in this course is discussed as follows;

Introduction

Premature ejaculation occurs when a person ejaculates faster than expected. This means they ejaculate faster than their partners thus leading to dissatisfaction of the partner who had not reached the climax. The approximate amount of time when a man suffering from this condition ejaculates is within one minute of sexual intercourse. This is a male condition and it is prevalent among men who are between the ages of 14 years to 30 years.

Symptomology

The symptoms associated with this condition are the inability to control when to ejaculate, psychological difficulties and performance anxiety.

Aetiology

The causative factors of this condition are mainly psychological even though there are other factors leading to this. There are two types of pre-mature ejaculation. Life-long condition and acquired premature ejaculation. Life-long pre-mature ejaculation occurs for the rest of a person s life while acquired pre-mature ejaculation may be treated. This condition is caused by relationship problems as well as anxiety issues which come as a result of the fear that they may not satisfy their partners due to an ejaculation which may come faster than expected.

Life-long premature ejaculation can be caused by masturbation when a person is in his youthful days, experiences which are traumatic like incest or sexual assault. This condition can also be caused by poor body image. Apart from these factors there are also biological causes to premature ejaculation and they include; extreme imbalance in the body hormones, erectile dysfunction, stress, inheritance, abnormal neuro-transmitter levels and infection in the urethra and prostrate.

Treatment

Premature ejaculation can be treated by psychological intervention whereby the person who suffers from it is counselled and he is taken through processes on how to overcome this situation. There is also medication whereby Selective serotonin reuptake inhibitors is used to treat depression initiated premature ejaculation.

This type of condition is sometimes difficult because the person suffering from it may be unwilling to disclose due to shame related issue and therefore it becomes difficult to manage and help the patient.

Conclusion

The categories discussed herein as well as in the whole course are very essential and they help a person to be able to attend to some issues which need basic knowledge and to know the cause of action for the others which need specialised medication.

Logical Fallacy Analysis

Essay #3: Logical Fallacy Analysis

If you have ever thought, “That’s unfair!” or “Wow, what a dumb way to do that!” or “They twisted the whole idea!”, you may have been faced with a logical fallacy.

Your Mission:

Familiarize yourself with the Logical Fallacies in the textbook and lecture notes. Consider when/where you see examples of logical fallacies in our daily lives. Choose one example of a logical fallacy you have observed and analyze it using the steps below. The example you choose can be something you have faced or something all people are subjected to. If you choose something that you personally experienced, it should be something that could happen to anyone.

Example of a personal experience that is OK to use:

You have a disagreement with your child’s teacher about a classroom rule that seems unfair, and the teacher tells you she maintains the policy because that’s the way she’s always enforced the rules (appeal to tradition). This topic is OK to use because other students and parents experience the same policy.

Example of a personal experience to AVOID:

You want to purchase a boat to fish and explore the local waters with your family. Your spouse says no to buying a boat because your family has never owned a boat and the family’s recreation has always been land-based (appeal to tradition). This topic is not OK to use because it is too personal…no one else is married to your spouse (let’s hope not anyway), no one else takes your family’s specific vacations and therefore, the situation is not experienced by anyone but you.

Think about what you encounter that seems silly or unfair…chances are a logical fallacy can be applied to it!

Essay Guidelines/Requirements:

Paragraph #1: Introduction

Catch the reader’s eye with an introduction strategy. Then transition to the situation/example in which you observed or experienced a logical fallacy. The introduction paragraph does not have to explain what the logical fallacies are, nor should it define/explain the specific logical fallacy you are using. Assume the audience is familiar with the logical fallacies and the fallacy you have chosen.

The thesis statement should appear at the end of the introduction. The thesis should simply state the situation/item and the logical fallacy: Advertisements for the Miracle Weight Loss System use false dichotomy to sell their diet program to consumers.

Paragraph #2: Describe the situation/item

The second paragraph should describe the situation or item you are examining. This paragraph should provide details so the audience fully understands the situation or item. If you are describing an advertisement, then explain what happens in the beginning/middle/end of the ad—include descriptions of both words and images. If you are describing a policy (for example, something in the rules about financial aid) describe what the rule says and what one would experience step-by-step when encountering the rule. Do not add opinion statements about the fairness of the policy/situation/item in this paragraph; just describe it. If you are describing an advertisement on TV, walk your readers through it, describing its features.

Paragraph #3: Explain why the situation/item presents a logical fallacy

Identify the features of what makes the item/situation a logical fallacy. This is the place to include your opinion about what is unfair or illogical. Explain where the situation or item breaks from logical thinking to fallacy—for example, when the Miracle Weight Loss System ads present two pictures, one of an obese person and another of a fit, slim person, the ad is presenting a false dichotomy, as more body types exist. The ad shows two extremes, and clearly this is not true. In addition, the overweight people in the ad look unhappy while the thinner people look happy. Clearly, weight is not what makes people unhappy and weight loss alone will not give someone a completely happy life as depicted in the ads. You do not have to explain the logical fallacy itself, as your audience already knows about the logical fallacy.

Paragraph #4: Explain a more realistic picture

Apply argument concepts/terminology to the logical fallacy to present a more realistic or accurate view. Apply argument terminology or strategies to explain how the fallacy can be eliminated and the situation could include more fairness or logic. For example, the Logical Appeal could be used to present statistics for the Miracle Weight Loss Program—how much weight did people actually lose? What was their starting weight and final weight after loss? The ad could use the ethical appeal to address some of the concerns skeptics might have about the product. You can apply any of the concepts or terminology from the textbook or notes in this paragraph (No need to list or define the concepts; simply integrate the concepts into your paragraph and combine the argument concepts with your own ideas). You could apply Rogerian principles and explain how the Rogerian Argument could be used to improve the situation and perhaps eliminate the logical fallacy. Basically, anything from the readings/notes that can be applied to eliminate the logical fallacy is fair game for this paragraph.

Paragraph #5: Conclusion—Reflect introduction and make a prediction

Remember that the conclusion should bring the essay to a logical close. A good way to do this is to bring the essay full circle by reflecting something from the introduction. For example, if you asked a question in the intro., answer it in the conclusion. If you used an example, mention that example in the conclusion. Then, based upon what you have written in your essay, make a prediction about the future about the situation/item. Will the policy change in the future? Will the ads for weight loss include even more logical fallacies? What new rule will be added to financial aid? What do you see happening in the situation’s future? Remember that the conclusion is not a place for advice or clichés. Your conclusion is the last impression you leave on the reader, so make it count by saying something intelligent that shows your critical thinking skills.

Formatting & Proofreading:

This essay does not require research. Please do not go to Google and look up “Examples of Logical Fallacies.” I have seen most of those already. If you must do some research, please use MLA style documentation for any outside source information. This includes in-text citations and a works cited.

2 – 4 pages

MLA heading/formatting

The Logical Fallacy you write about MUST come from the textbook or the lecture notes only. Do not Google “Logical Fallacies” and choose another fallacy from an online source.

You may use 1st person or 3rd person. (It is OK to use “I” if you experienced something personally.)

Academic style & tone

No Academic Writing Don’ts—especially weak wording such as “there are/is” and 2nd person “you”

Proofread for errors

Follow all guidelines