A Brief Note On Trading Strategy

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Trading Strategy As a portfolio Manager, my goal was to increase the portfolio value using a trading strategy that combines speculation and diversification (Refer figure 1 in the appendix). As a speculator, I would be betting on the movement of the underlying asset therefore, it was essential that I diversify my holdings to minimize the exposure. A diversified portfolio would provide certain protection against the downside risk if I bet wrong on the price movement. The types of vehicle I invested in were Futures contract and Stocks. Again, the goal was to diversify within both vehicle types to protect against the exposure (Refer figure 2 and 3). Portfolio Holdings  Futures Contract:  Long Platinum April 2016: Platinum is one of the industrious precious metals and because of its unique properties it has become a popular trading asset. It is largely used in the auto industry and auto industry has been experiencing a boom; which is why platinum prices have been rising steadily. Platinum is also great investing option and it is cheaper than gold.  Long Soybean Oil March 2016: Increasing populations and developing economies have contributed to an ongoing increase in food demand, thus broadly raising the prices of most agricultural commodities over the past few years. “The price of soybean futures has been rising since early 2009, while the long-term outlook is favorable as well” . Furthermore, the oils are commonly used for cooking and also play a key role in the

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