Stocktrak Report

Monday, September 10, 2012, I started Stock-Trak, an online portfolio game. Stock- Trak allowed me to gain hands on experience testing different investment strategies in a risk-free, yet realistic environment. From September 10 to November 16, 2012, I took part in one such simulation by managing an online Stock-Trak portfolio. I was given an initial amount of $100,000 pretend cash with which to invest. All monetary decisions were at my discretion. This paper discusses my trading experience , my portfolio’s performance, the strategies used during the simulation, what I learned in the process, and how I will implement the knowledge gained from the simulation in future investments.
a.How much previous experience trading stocks do you have?
Unfortunately, prior to this course I did not have any experience in trading stocks. I was not interested in learning or buying stocks, therefore my interest level was a zero.
b.What is your interest level and why?
I did not have much interest in trading stock, because it seemed complicated, confusing and boring, and I live on a fix income and did not want to invest money I barely have.
c. Goals for this exercise
Since, I had no experience in trading stock my primary goals were to learn the basics of trading stocks such as; what the stock market is like and how all the pieces fit together and gain the experience.

II. Investment Philosophy

a. Investor Assumptions:

Risk tolerance

My risk tolerance was a seven, because I wanted to maximize my diversification and allow my money to invest overtime. Nevertheless, having a high-risk tolerance will allow me to reach my financial goals. ii.Financial goals/purpose
My main question when focusing on my financial goals was, “What am I trying to achieve through investing (or trading)?” I concluded that I wanted to attain long-term wealth. In correlation to my risk tolerance, I came up with three important financial goals for my reason towards trading stock. My first