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Trading Strategies EssayThe Dutch Tulip Boom (1636-1637)The tulips, a beautiful flower usu onlyy associated with the Netherlands be flowers that have a very notorious frugal story in that country. The tulip is not a native Dutch flower. Like many other products in western sandwich Europe, such as the potato and tobacco, tulips came to the Netherlands from another part of the world. Tulip was introduced to the Dutch on the year 1593.It was state that the tulip was prototypical seen by Europeans in Turkey. Scholars now deal that the Turks had been cultivating tulips as early as AD 1000(Sykes, T. (2003),Tulips from Amsterdam). Most of these tulips belike originated in areas around the Black Sea, in the Crimea, and in the steppes to the north of the Caucasus. Back then it used to rule a very steep impairment which could be amounting to a small fortune, today the said flowers are available at modest determines.When the Tulip was first introduced to Holland, tulip ownership w as primarily limited to wealthy nobles and scholars. Antwerp, Brussels, Augsburg, Paris, and Prague are among about of the cities where such tulips first began to circulate. The exorbitant price as well as the great demand for this good gave draw close to an extraordinary event in Dutch history The Tulip thunder of 1636 1637.The Tulip Boom was an economic phenomenon which took house on the year 1636. This craze lasted for a year. (McGuigan, B. (2007), What is a Tulip Craze?, mull Corporation) The cause of the said phenomena was the explosive surge of the demand for tulip flowers and bulbs. The Tulip was prized back then for its rarity, beauty and because of the particular that it piles around 7 years to acquire a tulip seed into a bulb. It was said that a reasonable purchase price for an ordinary integrityness tulip-bulb of the Viceroy variety consists of two loads of wheat and four of rye, four fat oxen, eight pigs, a twelve sheep, two ox heads of wine, four tons of but ter, a thousand pounds of cheese, a bed, some clothing and a silver beaker.This price roughly estimated to be amounting to 2,500 guilders (Dutch Currency) is of descent ridiculously exorbitant nowadays considering that it is only for a piece of bulb which does not even guarantee that it will produce a flower. The said price however during those days is deemed a Fair and reasonable purchase price for an ordinary tulip bulb. Rarer species during the height of the Dutch tulip mania in the seventeenth century would be double or triple that price, a Semper Augustus, considered to be even more precious than the Viceroy tulip, could bring in close to 6,000 guilders. (Schulman, B. (2007), Tulip, The Regents of Minnesota University)Eventually, some tulips were change at the rate of a single bulb for the value of a house, and lots of bulbs were exchanged for bad estates. Tulips became a commodity on the Dutch stock exchanges, allowing people who werent cultivators or traders to try to take advantage of this boom. It was noted that many people began putting tremendous amounts of wealth into hypothesis on the tulip commercialize in extreme cases, even their entire savings or properties. The Tulip craze reached a fevered incline in the year 1636, which witnessed a lot of money pouring into the market, as well as speculation on tulip futures offered by traders who had not yet planted bulbs. At around 1637, the market became saturated with the said product, and some traders began to make do, often in large amounts.This caused panic on the so called tulip merchants making them want to sell their tulips immediately even up to the point of selling cheap. Needless to say the said speculation caused an enormous downturn. As a result the tulip craze ruined many thousands of people financially, as tulip bulbs that had been purchased for the price of a great estate were nearly devalued overnight to the price of common onions. To stop the economy from plummeting and becaus e of the fact that tulip prices and the practice of tulip speculation became so inordinatenessive and frenzied the States of Holland passed a statute curbing such extremes in the year 1637. (Jones, S. ((2005), House Prices Tulip Mania A lesson from History )II. The Current orbicular mine Resources BoomAs of the present, Mining companies are in the midst of an immense economic boom, accompanied with high levels of demand and an higher up average boost in revenue and profits. It is apparent that the Global demand for metals is closely related to orbiculate GDP, although rapidly expanding economies tend to have a higher intensity of use of some metals, particularly steels, than advance countries (Mandaro, L(2006). Joy Global No end to mine boom in potty,). Many analysts believe that the current peaks may represent long-term strength in the market, driven largely by the economic engines of China and India. The rapid growth of Chinese and Indian economies seem to have been inve rsely affected by the growth of Western economies. The advancement world enjoyed by the two countries is showing no signs of imminent redress or stagnation. The said Phenomenal levels of this demand were not expected nor anticipated(Achieving High Performance in Mining Winning Today, Succeeding tomorrow (1996-2007).The mining industry may not have the same nature of cycles as typically perceived by investors, but the current level of high metals prices appears to be prop up and the predicted peak keeps on moving. Amidst the apparent boom which the mining sector is experiencing presently, some measures still call for to be implemented by the executives of the mining sectors to guidance on the opportunities that todays high commodity prices present, it is apparent that the mining sector needs to keep an eye on significant challenges that lie beyond the current boom to achieve high performance. It is a known fact that although prices are not likely to drop to the lows which occur red a few years back, the said prices are likely to fluctuate and fall below todays levels.This assessment is considered blameless given the number of players orbicularly, there is a high risk of investing in future excess capacity. Production costs are skyrocketing, especially energy and input material costs, these variables seem to have pinched the positive effects the benefits of the commodity boom has in store for the mining industry. In a global industry, commodity price and currency volatility have the potential to erode the benefits coming from the profits being enjoyed by the Mining industry (Ernst preadolescent.(2006) A Timely Opportunity for tete-a-tete Equity?).Todays strong market gives companies an opportunity to invest in preparing to meet those challenges. Mining companies need to plan for a potential downturn as well as for continued high demand. In short, they need to balance the ability to apply todays boom times with well-founded strategies that will contin ue to deliver value to shareholders in the post-boom period. They also must(prenominal) pay close attention to a range of issues to drive the triple bottom line and focus not only on economic results, but also on the social and environmental impingement of their operations. In an era of global competition, mining companies must constantly look for ways to improve those operations, in the main by applying modern technology on the mining equipments used from mines to concentrators to smelters (Ernst Young.(2006) A Timely Opportunity for Private Equity?).III. The parvenue York stock certificates Exchange Commission (NYSE)Stock exchange legal proceeding are basically transactions that involve the day to day activities of brokers and dealers. These individuals facilitate the buying and selling of financial assets. Brokers execute trades on behalf of clients and sire commissions and fees in exchange for matching buyers and sellers. Dealers, on the other hand, buy and sell from the ir own portfolios (Stock Exchange(2007)) Microsoft MSN encyclopaedia Encarta) .They agnise income by selling a financial instrument at a price that is greater than the price the dealer paid for the instrument. Some exchange participants perform both roles.The said transactions occur oftentimes nowadays and is governed primarily by Stock exchange commissions, the most noted of these organizations would probably be the newfangled York Stocks Exchange Commission. The New York Stocks Exchange Commission is the worlds largest marketplace for securities. It was organized back in 1792 by a group of stockbrokers who wanted a more orderly way to sell and buy company stocks (The New York Stock Exchange) (2007), Encyclopedia Britannica Online).The New York Stock exchange was formerly located at number 40 Wall Street in New York City, But As the said establishment grew it was later move into what is currently the New York Stock Exchange Building. Membership was limited to 1,366 since 1953, and is obtained by purchasing a basis from a current existing component. Major stock exchanges in the United States include the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), both in New York City. The NYSE is operated by a board of directors, whose primary role is to list down securities, to set policies and to supervise the stock exchange and its member activities.Another important function of the NYSE is to oversee the transfer of members seats on the Exchange, which would involve sound judgement whether a potential applicant is qualified to be a specialist. Stock exchanges perform important roles in national economies (New York Stock Exchange NYSE (2007), Investopedia). Most importantly, they encourage investment by providing places for buyers and sellers to trade securities. This investment, in turn, enables corporations to obtain funds to expand their businesses.The Stock market, is of course the mirror of the current economic situation of a countr y. The NYSE, being the largest of them all, would of course imply that any fluctuation occurring in the NYSE stock market would of course mirror the economic situation of the U.S. This would best be illustrated by the economic turmoil experienced by the said country on the year 1929. It was an event remembered by many because of a lot of adverse things happened within a blink of an eye. In the 1920s, things were really rocking in the US and around the world. The rapid extend in industrialization was fueling growth in the economy, and technology improvements had the leading economists believing that the up rise would continue.The enormous amount of unsecured consumer debt created by this speculation left the stock market essentially off-balance. It was on the 24th of October 1929, when the stock prices began to fall and brokers began to sell. By noon of the same day, millions of shares had been sold. The selling frenzy continued all afternoon. Before the close of the day, 13 millio n shares had been traded and the market dropped an estimated amount of four billion dollars. Many investors, time-tested to even things up, and as a course of action they invested their life savings, mortgaged their homes, and cashed in safer investments such as treasury bonds and bank accounts.After some time the realization of what had happened began to sink in, and a full-blown panic ensued. People who had invested their entire life savings during the boom became destitute. Many of the banks which had speculated heavily with their deposits were wiped out by the falling prices, and these bank failures sparked a run on the banking system. As a result many banks and businesses were coerce to close.Each failed bank, factory, business, and investor contributed to the downward spiral that would drag the world into the Great Depression. Five days later, the worst achievable scenario took place. On that day, over 16 million shares of stock were sold and the market fell over 14 billio n dollars. By comparison, the entire budget of the U.S. Government that year was three billion dollars. In one day, the United States lost more capital than it had spent in all of World War I. And so it came to pass that thousands of investors many of them ordinary working people, were financially ruined. By the end of that year, stock values had dropped by fifteen billion dollars (The Crash, NYC Architecture. Retrieved August 29, 2007). BibliographyThe Dutch Tulip BoomSchulman, B. (2007), Tulip, The Regents of Minnesota University,Retrieved August 28, 2007 http//bell.lib.umn.edu/Products/tulips.htmlMcGuigan, B. (2007), What is a Tulip Craze?, Conjecture Corporation, Retrieved August 28, 2007 http//www.wisegeek.com/what-is-a-tulip-craze.htmJones, S. ((2005), House Prices Tulip Mania A lesson from History Retrieved August 28, 2007http//www.marketoracle.co.uk/Article18.htmlSykes, T. (2003), Tulips from Amsterdam, Retrieved August 27, 2007http//www.rba.gov.au/PublicationsAndResear ch/Conferences/2003/Sykes.pdfThe Current Global Mining Resources BoomMandaro, L(2006). Joy Global No end to mining boom in sight, MarketwatchRetrieved August 29, 2007http//www.marketwatch.com/News/Story/5VZZZjDn3fVvlBkkp9z78HtAchieving High Performance in Mining Winning Today, Succeeding Tomorrow (1996-2007), Accenture, Retrieved August 29, 2007.http//www.accenture.com/Global/Services/By_Industry/Mining/R_and_I/WinningTodaySucceedingTomorrow.htmErnst Young.(2006) A Timely Opportunity for Private Equity? Ernst Young Global. Retrieved August 29, 2007.http//www.ey.com/global/content.nsf/International/Mining_Private_EquityThe New York Stocks Exchange CommissionThe New York Stock Exchange (2007), Encyclopedia Britannica Online.Retrieved August 29, 2007. http//www.britannica.com/eb/article-9055541/New-York-Stock-ExchangeNew York Stock Exchange NYSE (2007), Investopedia Retrieved August 29, 2007 http//www.investopedia.com/terms/n/nyse.aspThe Crash, NYC Architecture. Retrieved August 29, 2007 http//www.nyc-architecture.com/LM/LM036-NEWYORKSTOCKEXCHANGE.htmStock Exchange(2007), Microsoft MSN Encyclopedia Encarta.Retrieved August 29, 2007 http//encarta.msn.com/encyclopedia_761560145/Stock_Exchange.htmlGongloff, M. Attacks could hit economy. CNN Money. Retrieved August 30, 2007 http//money.cnn.com/2001/09/11/economy/wtc_econ/