Stocktrack simulation
Summary :
Table of Contents
- Introduction
- Investment philosophy and strategy
- Maintenance of a trading diary
- Portfolio performance and evaluation
- Conclusion
- Bibliography
- Appendix 1: Trades
- Appendix 2: Stocktrak's printout of portfolio shared with one other student
- Approach two: Introduction to stock-trak
- Philosophy behind stock-trak
- Dealing with increased uncertainity
- Conclusion
- Bibliography
Abstract
I had $50,000 to spend and see what happened in a six week period. It reminded me of fantasy football. It simulates all major securities and all the results are based on the actual market performance so the only real difference is that the money involved is not real. As such, I tried to treat it as a legitimate portfolio and take it as seriously as I would if it were real.
The rules state that some requirements and transactions are simplified, but it seemed representative of an actual portfolio to me. Stocks could be bought and sold, even traded on the margin or sold short. The NYSE, AMEX and NASDAQ were represented as long as they cost more than three dollars. Foreign markets were also an option, though I admit that it seemed a bit daunting because I am less familiar with that side of investment.
In trying to make the simulation a legitimate experience, I realized early on that my tolerance for risk is limited and I do not like investing for the short-term or based on current trends. The idea of "blue chips" appeals to me even though I am still in a stage of life where my demographic probably has a higher tolerance for risk than I do. M
The rules state that some requirements and transactions are simplified, but it seemed representative of an actual portfolio to me. Stocks could be bought and sold, even traded on the margin or sold short. The NYSE, AMEX and NASDAQ were represented as long as they cost more than three dollars. Foreign markets were also an option, though I admit that it seemed a bit daunting because I am less familiar with that side of investment.
In trying to make the simulation a legitimate experience, I realized early on that my tolerance for risk is limited and I do not like investing for the short-term or based on current trends. The idea of "blue chips" appeals to me even though I am still in a stage of life where my demographic probably has a higher tolerance for risk than I do. M
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