finance

STOCKTRAK REPORT An Experience in Trading Stocks

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Prepared for:

Finance

Prepared by:

Name

Date

PLEASE NOTE: PAPER SHOULD BE SINGLE SPACED WITH DOUBLE SPACED TEXT IN BETWEEN PARAGRAPHS

I. Investment Philosophy

a. Investor Assumptions

i. Risk tolerance

ii. Time horizon

iii. Financial goals/purpose

b. Market Status and Assumptions- information about the market

i. Current level of the S&P500 at today? Is it a “bull” or “bear” market (Author 2)?

ii. What are experts/media saying?

iii. What are the factors that will affect the market in the short-term?

iv. Forecast for next 3 months and time horizon

c. Investment Strategy- plan based on investor and market information

i. Types of stocks you will invest in?

1. Blue-chip

2. Growth

3. Value

4. Large/Med/Small Capitalization

ii. How will you split up your investment?

1. Diversification – 15 to 20 stocks

2. By type, risk, or industry

iii. What industries will you focus on and why?

1. Select 8 to 10 and explain why

2. Use Yahoo Finance Industry Center

a. https://finance.yahoo.com/industries/

iv. When will you sell and/or buy more?

1. Could be a set percentage increase or decrease.

2. Saving some cash for later?

v. WATCHLIST – list 30 stocks you want to watch in a table that should include columns for stock name, ticker symbol, price, industry, beta INCLUDE IN APPENDIX

1. Use excel spreadsheet to list out stocks

vi. INVESTMENT PHILOSOPHY – 1 paragraph description summarizing how you want your funds invested in the stock market. Imagine that 1 paragraph is all you can give to a financial planner to invest on your behalf.

1. Unless you are trying to win the game, your strategy should include diversification.

II. Plan Implementation

a. Trading Diary- what trades you made and why? Format depends on how many trades you made.

i. Initial Purchases with reasoning

ii. Note for every time you checked your portfolio

iii. Reasoning for buy and sell through the semester

· 9/22/20 Checked Portfolio – no change, was up 2%

· 10/5/20 Sell and Buy – sold XYZ stock because …and bought

· 10/25/20 News – article came out about APPLE’s new iphones – they appear to be a major improvement. Will consider buying more stock in the coming weeks.

III. Portfolio Performance and Evaluations

a. Qualitative Evaluation – 1 to 2 paragraphs

i. Best & worst trades- why?

ii. Which decisions were good? Bad? Why?

iii. Overall ranking

b. Quantitative Evaluation (Regression)

i. Percentage return of portfolio and S&P500 index

ii. What would the return be the annualized returns? How does that compare with historic averages?

iii. Portfolio beta – using regression – did you take on more or less risk than the market? Was that the plan and if not, why didn’t you follow the plan?

1. Should be between .5 and 1.5 for most portfolio

iv. Did you outperform or underperform versus the market?

IV. Summary

a. Lessons Learned

i. What did you learn about trading stocks?

ii. What helped you the most from lecture or other resources?

b. Alternative Approaches to Investing –what would you do or try differently next time?

V. Appendix

a. Watchlist

b. Works Cited (optional or just use footnotes)

c. Transaction Log/History

d. Regression sheet and output

� Yahoo Finance article – “Best Stocks to Buy” Date

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