The impact of feedback trading on stock prices--美国Assignment代写范文

美国Assignment代写范文:“The impact of feedback trading on stock prices”，这篇论文主要描述的是投资者根据市场变动的情况有着比较频繁的交易行为，这种交易行为会受到投资者情绪的影响，投资者之间情绪的传播可能使用投资者普遍看好，可能影响到股票价格的决策，投资者的这种反馈交易我们也可以简单的理解为追涨杀跌，总来的说这种反馈交易的行为是种比较不理智的行为。

Investors tend to trade too frequently, especially in the period of high investor sentiment, because investors have more confidence in the access to information, so hope to achieve better returns. In addition, to some extent, individual investors are certain information spread over investor sentiment, which is high in this period, frequent optimistic. As a consequence, the investment could be influenced over the stock price on the decision making. Therefore, the article would like to investigate the effect of investor sentiment on feedback trading behavior.

From the theory base of the feedback trading, the influence factors of them could be summarized as follow. Many researchers have paid attentions to the feedback trading behaviors. Huet.,al(2015) finds that the investors in the index future market using positive-feedback trading strategies to determine their future investment decisions. However, their study lacks internal factors that potentially affect individual feedback traders. Chiao, Hung, & Lee, further indicates (2011) thatthe positive relationship between investor sentiment and positive feedback trading may increase liquidity in the market to reduce investment cycle shorter temporary price fluctuations. Moreover, it does not publish subtle psychological factors among the individual investors. The trading behavior of real example is influenced over the market, the trend of many individual investors find reasonable prices and trading volume in the past records according to expect "trend" is permanent. Such investors are known as positive feedback traders.

The definition of the feedback trading could be defined on the following ways. Like "noise", "Feedback" this vocabulary is also rooted in natural science research. It refers to, in an information feedback system, system output as the input of the system parameters, thereby further strengthening the process of the system output, divided into positive reinforcement and negative reinforcement. Moreover, feedback trading behavior in financial markets, also have this direction, if the dynamic, process and the perspective of systematic analysis, the so-called Positive Feedback Trading, which refers to the financial information production prices lead to buying on financial assets, which leads to the rise in prices has been positive reinforcement, cause further gains;falling prices caused by the financial asset sold. Positive reinforcement processes are leading to its price fall further. As a result of the parameter gradually deviated from its initial value. Visible, positive reinforcement (positive feedback trading) is a feedback system; a gradually deviate from the steady state system, the system in the process of evolving will become more unstable. Negative Feedback Trading, refers to financial asset prices fall cause buying on financial assets, so that its price is negative to strengthen, fall is reduced, at this time of financial assets to buy also reduce accordingly, the entire process until the price to rise; the financial assets price rises lead to the sell, thus lead to price rises reduce negative reinforcement process, a new round of selling phase should be reduced. Development, it is not hard to see, this process will eventually return to a balanced level. Visible, the negative reinforcement feed system (negative feedback trading) is a gradual return to dynamic equilibrium system, system gradually in continuous evolution to the stable.In addition, the author still believes that the main ideas of feedback trading is that trading behavior should comply with the development of the market price is potential. From a historical perspective, in the respective of those routes, improve the occasion ideas can be traced back to long time. Due to the potential pattern became a kind of important strategy, to generate to economics, is the trend of the market price to understand and obey. The comparison of the trading of the stock market into a game pass the swim of things Play, it recognizes that the existence of the stock market feedback, participates in positive feedback trading mentality analysis, pointed out: "market participants know that there is a something you don't in the pass, the key is to something in the music to stop before the handle to the next one." This idea can be thought of as feedback early prototypes. In this kind of overconfidence and even can be said to be the lucky psychology, market participants believe that if he can before the market price collapse, will be in the hands of the stock sold to others, he is still a profit.

The financial model could be enhanced the positive trading influence over the share price. In addition, positive feedback trading model in the stock market traders can be divided into two categories: rational speculators and positive feedback traders. The rational speculative trading based on the fundamental value of the stock into the line, can stabilize the stock market, reduce excessive price volatility for use; the behavior characteristic of positive feedback traders is for excessive expectations of price or price actively follow up, which is a kind of typical noise trading behavior. Noise trading behavior based on the market for the spread of false information or lead investors to misjudgment, often thought to be in a certain extent caused by unreasonable allocation of information resources as well as the obvious deviation of value and price. With positive feedback trading model to the United States for nearly a century of stock index, earnings are studied the U.S. stock market is feedback traders has obvious effects for use.Besides that, in the positive feedback trading model assumes that the stock market trader fall into two categories. The first category is rational speculators, they demand for a stock depends on the expected utility maximization. In addition, the second type of trader is positive feedback traders, they adopt positive feedback trading strategy, using the rule of traders include not only USES the irrational behavior of market participants "follow suit", also includes the line into the portfolio insurance, or use the stop-loss orders traders.

In the research, result has disclosed that the sentiment could be affected over the price of the share market. Furthermore, conventional wisdom suggests that investor sentiment significantly associated with trading frequency and the positive feedback trading. Results show that the relationship between the active trading frequency and volatility by using high frequency from the Nasdaq stock market under the intraday data set(Xiaoquan&Lihong, 2015). Their research shows that large companies deal with the vast market and enterprise specific information more frequently promote investor liquidity to produce beneficial effects. They use intraday data sampling, the frequency of the five minutes showed positive feedback trading spot foreign exchange market. Their results show that when the data in the lower sampling frequency, the ability of other statistical tools market dollar/euro endogenous variable deteriorated to such an extent that analysis is meaningless. There are some what's the weather like in New York and return by the relationship between the intraday data on the New York stock exchange (NYSE). Trading patterns have different trading range between the difference is very big. Intraday data to allow a more reliable and effective to assess the effect of emotional factors on the stock price is referred.Besides that, the other example in China, With positive feedback trading model in Shanghai, Shenzhen and Hong Kong stock market index, yield of three representative sequences of empirical research, before and after the introduction of stock index futures and the hang Seng index, yield sequence comparison and analysis. The results showed that: (1) in Shanghai, Shenzhen, Hong Kong exist significant positive feedback trading behavior in the stock market, the positive feedback trading will result in a negative index, yield sequence since phase, rather than parallel trading or market friction may cause yield sequence Columns are autocorrelation. (2) the hang seng index in Hong Kong after the introduction of stock index futures to, in addition to the non synchronous trading and market friction less influence on stock market, securities market also decreased significantly, the positive feedback trading behavior in the positive feedback traders the impact on the stock market has been greatly weakened. That exist in the Chinese stock market returns in a sequence of positive feedback trading behavior characteristics, and foreign literature of the United States, Britain, France, Japan and other industry of the country's stock market research. This shows that China's stock market has the similarity with the international stock market; the contact between them is gradually strengthened. Along with our country reform and open policy step into a deep and the influence of China's accession to the WTO, China's stock market will gradually open to foreign investors, gradually toward internationalization. Under this international background, should speed up the process of our stock market of financial derivatives innovation, under the condition of the conditions are ripe, and launch stock futures trading and other derivatives trading, the study of Hong Kong's hang Seng index shows that the introduction of stock index futures will greatly weaken the positive and negative feed traders in the stock market impact, so as to stabilize the stock market. Because of the Shanghai and Shenzhen stock market in China and Hong Kong stock market have great similarities, our research results to promote our country's stock index futures products provide theoretical support.

In conclusion, the impact of the feedback trading on share price is serious over the test on the Chines share markets. In addition, the investors are willing to get more return from the share markets, their behaviors could enhance the decision making.

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