Trading Report

In: Business and Management

Submitted By Quanle91
Words 1006
Pages 5
Trading report

If I do not have any specific information about the financial markets, only have historical information on the returns/risks of the different types of assets (ETFs), I would slowly enter to the market. I would draw a personal financial market roadmap to figure out my goals and risk tolerance and evaluate my comfort zone in taking risk. However, as I have 1 millions dollars (money paper) to invest, so I have intention to buy high beta stocks with high risk. In this case, I will choose the stock with beta above 1 (riskier than the market). Before you buy stock in a company, you need to do a little light – reading and doing research. Investing in stock without checking out the company beforehand is a recipe for disaster. In this case, I will do a research online like Yahoo Finance, MSN Money, Investor Guide and The Street to find the most volatile stocks with high risk and high return. Investing in volatile stocks is like riding a roller coaster. When the market is on a roll, taking on more risk in your portfolio can have big rewards, but you will have stomach to deal with potential losses. I chose to buy 2,000 shares of Netflix with a market price $91.84 and the beta is 1.32. Netflix is an amazing success story both in entertainment industry and stock investment. Within 3 years, the company stock price has been increasing from $20 a share to over $100 a shares. Investing in Netflix either I can get a lot of money return or lost a lot of money. I also research for most traded stock on Wall Street Survivor to see which popular investing company is. Amazon, Microsoft, Apple and Ford Motor are most traded stock on market. Then I can narrow down the type of stocks and figure out which company has more potential gain. Stock chart is also really important to take a look before investing in a company. We can see the market price change in a period…...

Similar Documents

Trading Strategy

...TRADING EXERCISE REPORT ASSET CLASS: FIXED INCOME FUTURES GROUP: Bakhali, Cordero, Gunkel, Swaleh, Quevedo PRELIMINARY STRATEGY REPORT OCTOBER 17, 2012 _______________________________________________________________________________ -(5-10 pages) explaining the various trading strategies you will use :I am just interested to learn about what you plan to try during the next weeks. - The report will be worth 10 points. The grading will be based on the following questions: • Do you understanding how your asset class works? (5 pts) • Did you define clearly and unambiguously your trading strategy? (5 pts) • The key for us is to try to forecast the interest rate for which we need to analyze the impact of monetary policy and QE3, among others. I. Introduction: 1. Asset Selection Eurodollar futures: traded at Chicago Mercantile Exchange (CME Globex Electronic trading platform); convey obligations over a specific notional $ amount in a specific currency $1 million investors use futures to target a cash rate of interest on an underlying benchmark cash product Short term interest rate futures: 3 months Settling price on an exact point in time, when rate of underlying is fixed, the price of cash is agreed upon or fixed every day to create LIBOR settlements (London Interbank offered rate), which is the daily fixing by member banks around London @ 11 am each day. 2. Attributes of Eurodollar Futures: Underlying Instrument | 3-month LIBOR: LIBOR on 3-month U.S.$......

Words: 1871 - Pages: 8


...Short Introduction to Trading Theory (S.A.Bartlett) Markets possess both complex dynamic and quantum system qualities. Complex as current dynamics are fully determined by current conditions, with every resulting action or cause producing a reaction or effect, forming the base of subsequent future actions. Quantum as states of equilibrium and disequilibrium occurs between different price bands. With the inherit behaviour of dynamic systems highly sensitive to initial conditions, behaviour of price trends remain a deterministic non-periodic flow, with the perceived construction of trends a by-product of the intra and inter day assorted occurrences exhibiting force upon one another. As the occurrence of these deterministic non-periodic flows exhibit both the reflexivity and factual states of the market; reflexive in its self perpetuating/self defeating distribution, fractural in its display of similar dimensional structure, any qualitative trajectory remains highly dependant on the initial conditions. Given the complex dynamical structure of markets, where the initial conditions remain unstable, bifurcating in accordance with the proceeding reaction or effect, the production of long term (fortnightly, monthly quarterly etc) probability distributions remains highly inaccurate. However, as the use of the mathematical models measuring the structural stability, underlying dynamics and non-linear movement of the basin of attraction, the calculation of the probable......

Words: 593 - Pages: 3

Insider Trading

...2012 Insider Trading In a securities market there are winners and losers, people who get good prices and people who get bad prices. Other things equal, the person with the best information about what is being bought or sold stands in the best position to find bargains and get the best price. Competing against corporate insiders, who possess superior information thus increases the risk that one loses. As a society, we have good moral reason to protect ourselves against this kind of fraud. Definition of “Insider Trading” Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information. However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company.[1] Unfairness The first and most obvious argument that one may find to describe insider trading as immoral is the one of unfairness. Under their definition insider trading......

Words: 972 - Pages: 4


...around 2000 years ago, knew that the first step or rather the first chapter to success is planning. You’d think they’d learn! * * At this stage, a villain would only think of preparing a plan that might lead them to victory but a hero would prepare a plan that can handle multiple possibilities which can turn a potential bad situation in to a moderate acceptable loss. And that is why good always triumphs against evil. Like any well thought out system or machine we require the blue prints and then parts. A car, for instance is a modern day miracle and irreplaceable part of our daily lives, but every car has some key components that are required for it to function, namely: the mechanics, the container, speedometer and rev meter. In the trading industry we also classify essentials into 3 sections: hardware, software and services. * * Hardware: We can start with the organs of every car, the mechanics under the shell, in our case the computer. What makes a Bugatti any different from Maserati, except the price tag? Horsepower, the one thing that puts you ahead of the enemy when racing down Lynnwood road, your ability to push your machine further faster than anyone else. The only way to achieve this would be to build a computer that is capable of running multiple applications at the same time. So what do we look for in such a machine: * Well the brain to any computer would be the CPU (Central processing unit), currently the best CPU on the market you can get......

Words: 2833 - Pages: 12

Stocks Trading

...TRADING STOCKS Stock trading has become one of the most popular and efficient ways to make money since it is easy to access and it could bring a lot of money back to investors. With some extra money, anyone can purchase stocks from a company or corporation and make profit. A stock is basically a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. Owning a stock means that a stockholder (person that owns the stock) has a claim to a part of the corporation’s assets and earnings. We could say that shareholders are owners of a corporation. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. The higher number of stocks a person owns, the more benefit he/she will get. People that purchase stocks would have the following advantages and disadvantages: Advantages: -They would be able to gain a large amount of money -The potential loss from stock purchases with cash is limited to the amount of the initial investment. -Stocks offer limited legal liability -Most stocks are very liquid (they can be bought and sold quickly at a fair price) -Investment diversification......

Words: 2827 - Pages: 12


...Protectionism occurs when a country design regulations to protect “domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors” (Protectionism, 2015, para. 1). In reality some countries can adjust better than other countries because of the effectiveness in their policies. In addition, it is clear that the world seemingly operates more effectively via free trade and restricting free trade tends to create more problems. Then again, free trade can stimulate economic long-term growth by providing numerous trading opportunities to gain a comparative advantage, unlimited production possibilities, and improve efficiency (output of products) (McConnell, Brue, & Flynn, 2015). International trade can create jobs through exports; in fact, the Department of Commerce compiled a report showing that exporting goods play a critical role in relation to employment. Exports created jobs and increased the GDP (Gross Domestic Product) because it expanded the global market for businesses by providing opportunities (Massoudi, n. d.). Furthermore, the data shows that U.S. exports increased to nearly $1.7 trillion and created $165,000 jobs per export (Massoudi, n. d., para. 3). Free trade has a positive impact on the economic condition because of the benefits: promote economic growth and create jobs, competitive market, and economic efficiency. References Massoudi, A. (n. d.).......

Words: 360 - Pages: 2

Trading Game

...Final Report - Instructions 1. Description of all accounts (as in A2 stage1) List each account you used (transaction, saving and trading) and describe associated costs including any special offers you are using. Provide brief explanation/justification of your choice of accounts (Does it minimise your transaction costs? Any other reasons?) Example: Green Bank easy transaction account: no transaction costs for money transfers $22 (AUD) fee per transaction for foreign exchange (buying or selling USD) 2. Initial portfolio allocation (as in A2 stage1) Describe your initial portfolio. Provide brief explanation (Did you put any money on the saving account? Why? Did you buy shares in just a few companies or a lot of companies? Why? Is there any reason you buy shares in a particular companies?) Please note that I am not looking for “right” or “wrong” answer – different types of justifications may be used. For example, shares could be of companies from different sectors to provide diversification or just chosen randomly and so on. If you have a masterplan on how to beat a market, please share it with me; if not – this is not a problem – just briefly describe any reasoning you used (including random choice, companies I heard about and such) Example: The initial portfolio allocation 1. Green Bank easy transaction account transaction costs 2. Pink Bank online true saver account transaction costs 169.56 0 66,600.00 0 3. Green Bank online share trading......

Words: 1222 - Pages: 5


...Essay One In the paper The Dark Side of Trading, Dichev, Huang & Zhou (2014) investigate the effect of high trading volume on observed stock volatility controlling for fundamental information. Past literature almost unanimously states that high volumes of trading are always good as they are correlated with lower transactions costs, easier, faster and cheaper creation and adjustment of investment positions, lower cost of capital and higher prices. However one of the implications of the study is that increased trading also bring downsides that impact various market participants (investors, managers and regulators). The literature seems ignore the fact that a high volume of trading can also be destabilizing, as it injects a layer of trading-induced volatility over and above fundamental volatility. Practices like circuit-breakers employed by regulators to halt trading when prices fall dramatically sustain the fact that the market can sometimes go haywire for no particular reason related to fundamentals. Thus such policies are consistent with the view that trading can create its own volatility and it can get so out of hand that the best thing to do is to halt trading so everyone can cool off. The authors did three experiments, they used matched ETF and dual-class stocks as settings with substantial variation in trading but good natural controls for the underlying fundamental, and then they examined the aggregate time-series of U.S. stocks since 1926 and the cross-section of......

Words: 1194 - Pages: 5

Insider Trading

...Insider Trading at the Galleon Group The Galleon Group was one of the largest hedge fund management firms in the world, managing over $7 billion, before closing in October 2009. From greed to more greedy, and finally to destruction, this time the protagonist is Rajaratnam, he was accused of 14 securities fraud. Rajaratnam had a glorious history. He is 52 years old Sri Lanka-American, graduated from the Wharton School, he began his career in the field focusing on technology investment bank Needham & Co., An analyst from the start, 34-year-old became the president of this bank. In 1997, he started a technology stocks investment company, which was called Galleon Group in New York. In 2009, Rajaratnam's net worth to $ 1.3 billion by Forbes global rich list among the first 559. When Galleon was established in NY, Rajaratnam said: "This is Raj Rajaratnam, only the paranoid survived." Unfortunately, this time his "paranoid" gets too far. Rajaratnam's case is the largest in the history of Wall Street hedge fund insider trading case at that time, but also the first use of the Federal Investigation Agency monitor means to obtain evidence relating to insider trading. Rajaratnam's arrest on behalf of the US government efforts to combat financial crime has entered a new phase. In this case, there are two ethic issues that can be discussed. The first is a white-collar crime; insider trading is one of them. The second is the wiretap recording, whether it is legitimate, if it is,......

Words: 1451 - Pages: 6


...When it comes to FX trading, traders have two sets of currencies that come in a pair. The fluctuations in the exchange rate between these two currencies are where a trader looks to make profit on the Exchange Market. If trader believes that the foreign currency will appreciate against the USD, the trader’s profits will rise with every increase in the exchange price. However if the foreign currency were to fall against the dollar, than the trader would take a loss. Seems simple enough, however traders have option to buy or sell that foreign currency at any time and can go both ways of the currency. So even if the foreign currency were to depreciate against the USD, the trader can still make a profit if they were to sell the dollar on the exchange market. To bring some clarity lets take a look at the Yen. If the Yen were appreciate (rises) against the dollar. A trader would than buy the Yen. By buying the Yen the buyer is also selling the dollar on expectation that the exchange price of the Yen will rise in value. The trader will than decide to close the position, selling the Yen with the exchange price higher than when they first bought it leaving them an increase in value or profit. Now if the Yen were to depreciate against the dollar, the YEN/USD exchange price will fall. That would than leave the trader with a loss as the exchange price falls below their purchase level and leave them a loss. In any trading market, the traders have the option of buying or selling......

Words: 860 - Pages: 4


...cotton farmers will receive at least $0.70 for every pound of cotton they harvest. If world cotton prices fall below this level, the government makes up the difference, writing a check to the farmers. Some 25,000 United States cotton farmers received some $3.4 billion in annual subsidy checks. Total agricultural subsidies in the United States amount to some $43 billion a year according to OECD figures. Japan is also a large subsidizer, providing some $47.4 billion in subsidies to farmers every year. In relative terms Switzerland, which is not an EU member, spent the most. Subsidies made up a remarkable 68 percent of its farm economy. Iceland was at 67 percent and Norway at 64 percent. European Union subsidies equaled 32 percent of that trading block’s farm economy, while the United States figure was 16 percent. One consequence of such subsidies is to create surplus production. That surplus is sold on world markets, where the extra supply depresses prices, making it much harder for producers in the developing world to sell their output at a profit. For example, EU subsidies to sugar beet producers amount to more than $4,000 an acre. With a minimum price guarantee that exceeds their costs of production, EU farmers plant more sugar beets than the EU market can absorb. The surplus, some 6 million tons per year, is dumped on the world market, where it depresses world prices. Estimates suggest that if the EU stopped dumping its surplus production on world markets, sugar prices......

Words: 1625 - Pages: 7

Insider Trading

...the Securities and Exchange Commission (SEC) to protect the financial markets by enforcing the Securities Exchange Act.2 One of the most important issues covered by the Securities Exchange Act concerns illegal insider trading in which individuals sell or purchase investments based on privileged inside information. Illegal insider trading activities significantly harm the integrity and stability of the securities markets. Thus, it is critical for people to understand and adhere to the requirements set forth by the Securities Exchange Act to prevent illegal insider trading, and it is equally important for those individuals who break the law and engage in these prohibited activities to be prosecuted and punished accordingly. There are two forms of insider trading, one that is considered legal and the other that is clearly illegal. The legal form of insider trading involves corporate officers and directors who buy and sell stock within their own companies on the basis on publically available information. So, once the company releases confidential information to the public, then the insiders are allowed to legally make their trades based on that information.3 The illegal form of insider trading is a common type of security fraud. This type of insider trading involves anyone buying or selling investment vehicles, such as stocks, bonds, and other securities, based on valuable information that is not available to the general public. When an individual has privileged......

Words: 3700 - Pages: 15

Emissions Trading

...Macquarie University Master of Applied Finance ------------------------------------------------- Emissions Trading ------------------------------------------------- Assignment 2 ------------------------------------------------- Onesteel Prepared by: Wayne Andrews Student number: 41712986 September 2011 Subject Number : ECFS905 Lecturer : Julian Turecek Class : Sydney P. T. Company Selection Select an ASX200 company that is expected to have a carbon exposure equal to or greater than 2% of EBITDA at a $23/t carbon price. Question 1 Determine the company’s carbon exposure, including direct (Scope 1) and indirect (Scope 2) emissions and establish that its exposure is greater than 2%. The following table summarises Onesteel’s actual and estimated for FY10, FY11 and FY12 emissions and imputed carbon cost under the currently proposed Carbon Tax, relative to reported EBITDA. Table 1 – Implied impact of carbon pricing imputed to 2010 results | Company Guidance | Fixed Price imputed for comparison | Fiscal year commencing | FY10 | FY10 | FY11 | FY12 | Carbon Price (FY10/11 theoretical) | 23.0 | 23.0 | 23.0 | 23.0 | EITE Assistance Rate | 94.5% | 94.5% | 94.5% | 94.5% | EBIT DA $Mil | 619.0 | 619.0 | 638.0 | 717.6 | Type 1 Emissions | 2.55 | 2.55 | 2.66 | 3.05 | Type 2 Emissions | 1.34 | 1.34 | 1...

Words: 4880 - Pages: 20


...Interest Rate |   | Year 1 | Year2 | Year3 | Low |   | 8% | 14% | Middle | 4% | 10% | 16% | High |   | 12% | 18% | Trading Case B02A The spot interest rate is known with certainty, while in year 2 and year 3, there are three possible interest rates. This creates scenarios of interest rates; 9 scenarios in year 1 and year2, and 3 scenarios in year 3. As a result, there are ranges of possible fair value for the bonds.   | Year 1 | Year 2 | Year 3 | 1 | 4% | 8% | 14% | 2 | 4% | 8% | 16% | 3 | 4% | 8% | 18% | 4 | 4% | 10% | 14% | 5 | 4% | 10% | 16% | 6 | 4% | 10% | 18% | 7 | 4% | 12% | 14% | 8 | 4% | 12% | 16% | 9 | 4% | 12% | 18% |   | Year 1 | Year 2 | Year 3 | 1 |   | 8% | 14% | 2 |   | 8% | 16% | 3 |   | 8% | 18% | 4 |   | 10% | 14% | 5 |   | 10% | 16% | 6 |   | 10% | 18% | 7 |   | 12% | 14% | 8 |   | 12% | 16% | 9 |   | 12% | 18% |   | Year 1 | Year 2 | Year 3 | 1 |   |   | 14% | 2 |   |   | 16% | 3 |   |   | 18% |   | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 98.232 |   | 85.852 | 72.756 | MAX | 104.426 |   | 89.031 | 78.098 | AVG | 101.285 | 96.154 | 87.432 | 75.387 | At the beginning of year 1 , Zero C1 would matured and no longer tradable. For the other three bonds, we have private information which enables us to cut out an interest rate, lefting with 6 scenarios. TRADE AT BEG YEAR 1 (interest not LOW) |   | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 92.161 |   | 89.286 | 75.666 | ...

Words: 461 - Pages: 2


...esta dependencia. Al mismo tiempo, la eliminación de los aranceles y de las ayudas a la industria nacional, en interés de un mercado totalmente libre, ha hecho que sea cada vez más difícil para estos países diversificarse “hacia arriba” o crear empresas industriales con mayor valor añadido. Los intentos de crear y proteger nuevas industrias han encontrado una fuerte oposición por parte del Banco Mundial y el FMI: los programas de Uganda, por ejemplo, para fomentar las áreas de exportación estratégicas como el pescado han ‘“sido recibidas con burlas por parte del Banco Mundial y el FMI”12. Figura 4. Precios reales de materias primas distintas del petróleo Fuente: Banco Mundial. Reporte Anual (2000) 12 ‘New World Bank (abril 2005). Reports ’Confirm that the HIPC initiative is failing’. 23 El valor añadido, para otros En los países productores prácticamente no se procesa ni se empaqueta nada de café, con lo cual les queda muy poco del potencial valor añadido del grano de café. No deja de ser asombroso ver que en 2003/04, el 94 por ciento de todo el café exportado por los países en vías de desarrollo cruzó las fronteras en su estado de grano verde: la mayor parte del 6 por ciento restante que había sido procesado procedía de Brasil y Colombia13. El bajo valor añadido en el café es un problema común a muchos productos básicos. Una reciente encuesta de la FAO concluyó, entre otras cosas, que: “La......

Words: 62612 - Pages: 251

666 Park Avenue | CAM Deadpool 2 | truembroidery