An electronic copy of your written report is to be submitted to the Drop Box. Please be sure to include your names on the cover page of the report as well as your professor’s name.
Required: To build on theoretical knowledge acquired through your readings, students are required to take part in a Stock Market Simulation to gain practical “hands-on” experience with investing. At the conclusion of the simulation, students will submit a written report. YOUR JOB IS TO WRITE THE WRITTEN REPORT!
How it works: Each student will enrol in the Stock Market and will be set-up with a virtual portfolio of USD $100,000. The Simulator uses real data from the stock markets in order to reproduce the experience of using a real online brokerage account. Users place virtual trades using real market data.
Stock Market Simulation Rules:
Minimum security holding time: 15 minutes Minimum stock price for long positions: $1 Minimum stock price for short positions: $5 Minimum stock price for margin: $5 Trading commissions:
– Market order: $9.99
– Limit order: $19.99
– Option: $19.99 + $1.75 per contract Margin Interest: 8%
Cash interest: 1%
• Securities Available for Trading:
o US equities traded on NYSE, Nasdaq and AMEX
o US equity options
o US ETFs
o shorting options is not allowed by the simulator
• Students must make a minimum of 25 trades throughout the simulation as follows:
Minimum 10 equity/stock trades
Minimum 2 ETF trades
Minimum 2 put option trades
Minimum 2 call option trades
Minimum 2 short sales
o Trades should occur regularly throughout the competition, not all at the start or end. You need to be engaged in the competiton.
I HAVE DONE THE TRADES – I WILL ATTACH THE TRADE HISTORY IN AN EXCEL SHEET
MY ACCOUNT VALUE AFTER THE COMPETITION IS $99,927.92
13 99927.92 -72.08 -0.07208
Please include the following information in your written report by the Due Date listed.
1. INVESTMENT STRATEGY. A written description of your strategy for investing the capital in your USD portfolio over the time frame of the challenge. Your objective should be to grow the capital as much as possible. You can follow a top-down or bottom-up approach and you are free to use whatever analysis you like – Fundamental or Technical or a combination thereof. Please express your high-level viewpoint on financial markets at the start of the competition and highlight if your strategy evolved and changed over the time period of the competition. Essentially, your professor will want to see that you have defined a “method to your madness”! Your description should include your sector and/or security focus and/or the variables you will consider in selecting stocks during the game.
2. PERFORMANCE ASSESSMENT. An assessment of your portfolio’s performance indicating the dollar gain/loss as well as the percentage gain/loss. Please compare the performance of your portfolio to an appropriate benchmark and provide commentary on what worked well and what did not.
3. SECURITY SELECTION. You must provide an evaluation and reasoning for all of your investment choices which aligns with your strategy. (ratios, brief company synopsis, technical analysis, charts, etc.). Describe what led you to your investment decision on each security traded.
4. REFLECTION. A critique of your strategy with the benefit of hindsight including observations about what you learnt about speculating in the stock market. Please include an overall reflection on your learning experience.
PLEASE DO NOT FORGET TO LOOK AT THE RUBRIC ATTCHED AS WELL FOR THE BEST GRADE POSSIBLE PLEASE!