How the Market Works

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How The Market Works Stock Market Simulator Report ECN 440 Dr. T Fung How The Market Works Scott McGee Executive Summary: This Economic report examines the successfulness of my first venture into trading stocks. Prior to this venture I had no previous experience buying and selling stocks. The main goal was obviously to make money, but there were other things to gain as well. For example, the knowledge and experience I gained from this venture is invaluable and will stick with myself in any future investments. The main goal was to use a 4 strategy system to increase my portfolio value and report on which strategies worked and didn’t work; as you’ll see, there is a report and a complete…show more content…
Strategy Analysis: Through the month of investing you go through many highs and lows and continue to move forward with your research to find the hot stocks. When comparing each strategy, it is unfair to base how well a strategy worked on by how much money you made. With that being said, you need to still consider that when evaluating the performance, but you also need to think about how the market performed, and if the market as a whole is declining or is hot. Based on the results of the past month, Strategy 4 seems to work the best. This is because a conservative approach won’t make you a lot of money but it should create a profit with the correct research.2 Strategy 2 would be the second best as a balanced portfolio allows for fluctuation between stocks; some may be trending downward with others trending upward, creating again, a small profit. Strategy 1 although it is riskiest, will give you best chance at a big score, as it only takes one risky stock having a good day to increase your portfolio value. Finally, Strategy 3, which focuses on one sector, gives you a chance to understand one sector very well through research and can lead to profit but generally if one stock is performing bad in that sector then they all are. Overall, the stock market experience was an excellent starting point in my investing career and moving forward I would consider any strategies used during the past month, as they all have the ability to work but if there came a chance to
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