Overview: This exercise has been designed to expose you to the world of investing and trading. To that end, you'll learn about and use trading rules and strategies which you'll use to invest in the stock market. You are not expected to put any of your own money on the line!
The grades that you will receive for this exercise will not be based on how much you profited or lost during the exercise. Your grade will come from report that you will write based on the transactions that you have made. However it is likely that you will learn more by trading actively.
Creating a Marketwatch Account and Joining the CSR 342 Game:
Follow these steps to join the game:
Step 1: Go to marketwatch site to create an account. (Accounts are free and you should not have to pay anything to create an account.)
Step 2: Once you enter the registration details. Marketwatch will send you a verification email (Your spam filter may block the verification email. Check your spam filter for the verification).
Note: If you are unable to receive the verification email follow Step 2a
Step 2a: After following steps 1 and 2 click on the login button and click on forgot password and provide the email that you registered with. You will get a reset password link and you need to follow the on screen instructions and then continue to step 3.
Step 3: Once you have your account set up, go tomarketwatch website. Under find a game, use the following credentials:
Game name (in the search bar) is ‘CSR342SPRING2018' Password is 'investments'
Step 4: Once you are in the game you can start trading under the "Trading" tab, where you can type the ticker of the respective stock/fund/ETF you want to trade.
Please note that Marketwatch's search recognizes only the tickers (e.g. the ticker for Apple is "AAPL", Google is "GOOGL") so make sure you type in the correct tickers. You can find the stock ticker on Yahoo finance or Google Finance websites.
Creating your initial investment portfolio in the Marketwatch Game
The first step is to look through chapters 3 and 7 of the workbook and pick a core strategy. Are you going to be an Investor or a Trader? Your decision here will influence the actions you take and the paper you'll
Write at the end of the semester. Once you're set up in the game, you're allotted $100,000 to experiment with (with 100% leverage). You have to invest atleast $16,000 for the assignment by putting atleast $4,000 in 4 categories (Momentum, Contrarian, Fund; including ETF or own strategy) to be able to fill out your report properly (outlined below).
The rest of the money is there if you want to use it. Make sure you keep track of the prices at which you buy and sell shares, the tickers of your various securities, quantities of your transactions, etc. Marketwatch helps you do all of this under the portfolio tab, especially the transactions portion.
Guidelines for writing report (report length: 3-4 pages, 11 font size, and single spacing) In the report you need to answer the following questions.
Part 1: Investments: Declare which strategy-investing or trading-you decided to utilize throughout the course of this project. Why did you choose that strategy?
How did your choices follow (or betray) the rules found in chapter 7 for your chosen strategy? Explain how you did or didn't follow these rule.
Which stocks/mutual funds/ETFs did you choose for the momentum section of your portfolio? Why did you choose these investments over others in the market? Explain your answer. Which stocks/mutual funds/ETFs did you choose for the contrarian section of your portfolio?
Why did you choose these over other losers in the market? Explain your answer. Which mutual funds/index funds/ETFs did you choose for this section of your portfolio? Why did you choose these over others in the market? Explain your answer.
How did you decide what to buy for your own strategy? Please provide a brief explanation for your answer.
Part 2: Profits/Losses Show the following information for each stock/mutual fund/ ETF purchased in a simple table like this one:
Based on your return calculations, which strategy offered the highest returns: your strategy or one of the required strategies (momentum, contrarian or fund approach)? By how much?
Part 3: You need to upload the report on Blackboard under the reports submission folder, which will be available at the end of the semester.
ttachment:- Budget And Expenses.rar