Monday, September 10, 2012, I started Stock-Trak, an online portfolio game. Stock- Trak allowed me to gain hands on experience testing different investment strategies in a risk-free, yet realistic environment. From September 10 to November 16, 2012, I took part in one such simulation by managing an online Stock-Trak portfolio. I was given an initial amount of $100,000 pretend cash with which to invest. All monetary decisions were at my discretion. This paper discusses my trading experience , my portfolio’s performance, the strategies used during the simulation, what I learned in the process, and how I will implement the knowledge gained from the simulation in future investments. a.How much previous experience trading stocks do you have? …show more content…
iv.Forecast for next 3 months and time horizon The three consecutive months would depend on who wins the 2012 elections. From then on, we should see how the economy would change drastically or slowly. Since we are still trying to recover from the 2008 downturn in the economy, I believe that eventually unemployment rates begin to decrease and the economy slowly makes a recovery. I thought in 2 months the market will increase by two or three percent. c. Investment Strategy : i. Types of stocks you will invest in? The stocks I brought were growth stocks, values stocks, and income stock. Investing in growth stock will allow my share within the company to be more profitable, because the companies’ profits are reinvested creating a substantial amount of cash flow within the company. I brought value stock, because there are companies that I believe will be worth investing in for their long-term growth. I could diversify between different companies ranging from most popular to unpopular. Finally yet importantly income stock, which will gradually grow during my time horizon to offset inflations within my stocks. Purchasing these three types of stocks will allow me to split up my initial $100,000 fund into the industries I am going to invest in. ii. How will you split up your investment? I utilized the $100,000 to purchase stocks representing
Portfolio management is an important factor that determines the performance of the portfolio. To perform well in the portfolio, it is not only essential to develop personal investment strategies, but analyzing current financial trend is also vital. Stock Trak is an online portfolio simulation that allows students to try out different investment strategies, and also get a hand on experience in what the real market trading conditions are. By managing the portfolio, I have acquired some new knowledge of investment strategies and also become more familiar with the current market by following closely to the financial headlines.
This report will describe examine the various strategies that were undertaken to successfully complete the Stocktrak simulation. Firstly, an analysis of the US and Chinese markets will be given as they are crucial markets that play a big role in the worldwide economy. Due to the fact that the US economy has been going through a recession, a working knowledge of this economic was crucial to our success. Our initial strategy revolved around timing trades based on daily market performance and expectations using daily market news and reports. While this strategy was successful to an extent, our group soon focused on diversifying our portfolio, not just through the quantity of
Choosing two profitable stocks amongst a myriad of potential alternatives is a daunting task to say the least. In order to narrow my choices from thousands to two, I examined several aspects of companies I was interested in. Among these were, company overview, alpha and beta ratings, price ratios, price charts, and company headlines. After evaluating this information, I chose Intuit INC (INTU) listed on the NASDAQ and Johnson and Johnson (JNJ) listed on the NYSE.
Although this investment class can be considered the most conservative of the three, the low yield of government bonds in the past 10 years does not lend a comparative metric against many other investment opportunities (Jacobs, 2012). The fixed rate of these instruments allows for a guaranteed return, but should only be utilized at a point in an investing cycle when risk is higher than potential income growth. The 25% allocation that is invested in this class is positioned to provide a long term guaranteed investment, with the possible that these lower rates will not rise significantly in the next few years.
The stock market has always intrigued me and I have since been eager to learn more about it. Starting back in January of this year, I ordered three textbooks on stock trading to become more informed on the subject. After reading these books, I gained further insight on stock trading which led me to open my own brokerage account where I could buy and sell stocks. I started by playing a stock simulation which was very similar in concept to StockTrak, a program we used in this class. I found that this helped provide me with a hands on experience which helped familiarize me with stock trading and learning how to manage and use my money efficiently. I continued to play this simulation for about two months and during this time my portfolio grew about 4%, which provided me a confidence boost and motivated me to invest in my real money into the stock market. In March of 2015, I officially began trading in the stock market and I continued to learn along the way. As of now, I have roughly nine months of stock trading experience. As stated previously, I have always had in interest in the stock market, but I never acted upon it until as recently as earlier this year. My interest in the stock market was peaked because I enjoy taking risks and the stock market
Certificate of Deposit is a savings note issued by a bank to a depositor who places funds in saving for a set period.
As part of the sensor industry, The Flopping Fish Inc. is a technology based company that creates sensors for other businesses that can be utilized and in corporate in cameras, biometric devices, and labs. Our products allow us to enter into multiple and diverse arenas such as: genetics, power generation, and satellites.
The “Stock Market” is a term that actually describes several markets such as the New York Stock Exchange NASDAQ, where the stocks of companies are traded. Shares in a company are sold and the shareholders then become part owners of the company. Offering shares of stock raises money for continued research and development of company products or services.
3. At what price would you recommend that Rosetta Stone shares be sold?Rosetta Stone: Pricing the 2009 IPO
The stock market game assignment was a new learning experience. The simulation gave us $100,000.00 to buy and sell domestic equities. The guidelines made the game a bit more straightforward by not allowing students to trade certain items. This assignment gave students the opportunity to see how the trading market works. Overall the stock market game assignment was a great way for any student to learn how the market works by having hands on experience with buying and trading their own stocks.
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General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. General Motors was founded 1908, in Flint, Michigan and currently employs approximately 284,000 people around the world. GM's global headquarters is the Renaissance Center located in Detroit, Michigan, USA, They currently manufacture their cars and trucks in 35 different countries. Its European headquarters are based in Zurich, Switzerland, and its Holden headquarters are located in Melbourne, Victoria, Australia. In 2007, 9.37 million GM cars and trucks were produced globally under the following 12 brands: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and
Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi.
In today’s world, many decisions are executed based on the financial market. As a result, it is paramount that people grasp the way markets behave and learn the best way to respond. Yet, so few of them choose to pursue this endeavor. Such willful ignorance has allowed the field to be permeated by charlatans who spread misinformation. The desire for truth about a very important aspect of our lives drove me to start searching for objective information about financial markets. Finance is the discipline that incorporates elements from some of my favorite subjects: computer science, mathematics, and economics.
Times have changed and so have all the investment and trading options as well. Online trading activities have taken the entire financial world by storm and it is evident by the sheer number of different online trading platforms and brokerage firms emerging on daily basis. With great many advantages and benefits offered to the investors, it is obvious why; millions of traders and investors are making beelines for this interesting, online format of trading, rather than the traditional ones.