2-3 pages double space

10/30/2016

Stock Trak Repot-Week 1

In 10/24/2016, I registered on the website Stock-Trak. I didn’t buy any securities before in the United States but I have some experience in Chinese Stock market. So I just made a specific plan during this week. I will invest 40% of my portfolio next week because I am not familiar with the US Stock Market. For these $400,000, I will put about $250,000 in long term investment and the rest for short investment. Because to lower the investment risk, I would like to use diversification. As the general rule mentioned in textbook chapter 5, “don’t put all your eggs in one basket.

For the short term investment, I plan to buy BABA at $98-$103. Because Nov.11 is the Single’s Day in China, many online stores in Taobao website (established by Group BABA) will offer some coupons just like the Black Friday in the United States. For example, the Chinese online shopping mall Taobao sold 19 billion CNY (about 3 billion USD) of goods on November 11, 2012 (Wiki). I believe that will raise the price of BABA.

For the long term investment, I plan to buy American Airlines Group Inc.(AAL) on from 11/1/2016 to 11/3/2016. That means I will buy this stocks serval times during these three days. Because on last Friday 10/28/2016, an American Airlines (AAL.O) jet engine that failed seconds before takeoff in a fiery runway accident at Chicago's O'Hare International Airport flung broken turbine parts as far as half a mile from the scene(Reuters). I believe I will catch the low point of the AAL stock price by the negative impact of the news.

Reference

Singles' Day. October 30, 2016, Retrieved from https://en.wikipedia.org/wiki/Singles'_Day

American Airlines plane engine flung debris in rare failure. (2016). Retrieved October 30, 2016, from http://www.reuters.com/article/us-chicago-airplane-engine-idUSKCN12T0Q7