Stock Market Investment Challenge
Introduction
Our Goal as a group for the investment challange was to maximize expected returns by investing in risky assets. We pursued an active trading strategy and as general rule bought stocks when the prices were relatively low in comparison to historical prices and sold them when the prices were high. At the end of the challenge 58.94% of our potrolifio was invested in stocks, 9.74% in bonds, 7.63% in equities and 23.67% in currencies. We started the Challenge with a global value of 1,000,000 USD and this value ranged between as low as 971,893.9 to as high as 1,051,879 and finally ended with a Global value of 1,038,121 demonstrating a overall return of 3.81% over a two month period. In this challenge we performed well over the benchmark and ranked 1st.
Stocks
Throughout the challenge a large portion of our portfolio was invested in this financial instrument as it gave us the opportunity to achieve higher returns and flexibility to move our investments around. We only allocated a small portion to products that provided basic necessities as we wanted to achieve a high return in a short amount of time and did not expect them to yield to a high return. We invested in riskier stocks such as technology, real estate. Our stock segment had a total of eleven stocks out of which six were profitable and five were losses. We based our stock investing decisions on a systematic, repeatable process known as S-A or Selection and Action. During the ‘Selection’ stage we narrowed the sea of stocks by only investing in the company we had previous knowledge about and then based on prices. We had some prior knowledge about all the stocks we invested in and our price ranged for buying or shorting the stocks between $0-80; ten out of the eleven stocks fell in this range where as the only stock that exceeded the range was Amazon that was purchased at $258. We chose this price interval because it gave us the flexibility to trade a large volumes of stocks which would help us
Our Goal as a group for the investment challange was to maximize expected returns by investing in risky assets. We pursued an active trading strategy and as general rule bought stocks when the prices were relatively low in comparison to historical prices and sold them when the prices were high. At the end of the challenge 58.94% of our potrolifio was invested in stocks, 9.74% in bonds, 7.63% in equities and 23.67% in currencies. We started the Challenge with a global value of 1,000,000 USD and this value ranged between as low as 971,893.9 to as high as 1,051,879 and finally ended with a Global value of 1,038,121 demonstrating a overall return of 3.81% over a two month period. In this challenge we performed well over the benchmark and ranked 1st.
Stocks
Throughout the challenge a large portion of our portfolio was invested in this financial instrument as it gave us the opportunity to achieve higher returns and flexibility to move our investments around. We only allocated a small portion to products that provided basic necessities as we wanted to achieve a high return in a short amount of time and did not expect them to yield to a high return. We invested in riskier stocks such as technology, real estate. Our stock segment had a total of eleven stocks out of which six were profitable and five were losses. We based our stock investing decisions on a systematic, repeatable process known as S-A or Selection and Action. During the ‘Selection’ stage we narrowed the sea of stocks by only investing in the company we had previous knowledge about and then based on prices. We had some prior knowledge about all the stocks we invested in and our price ranged for buying or shorting the stocks between $0-80; ten out of the eleven stocks fell in this range where as the only stock that exceeded the range was Amazon that was purchased at $258. We chose this price interval because it gave us the flexibility to trade a large volumes of stocks which would help us