How much previous experience trading stocks do you have

8. How much previous experience trading stocks do you have?
   b. What is your interest level and why?
   c. Goals for this exercise

   d. SUMMARY OF RESULTS (Example below)
   i. Date of first trade -9/8/2020
   ii. S&P 500 index value on day prior to first trade- 3122
   iii. End value of portfolio – 108,363
   iv. Percentage return of portfolio and S&P500 index – 8.3% and 5.3%
   v. Portfolio beta -1.1
   vi. Overall ranking – 37 out of 294

   II. Investment Philosophy – 2 to 3 pages PRE-STOCKTRAK (DUE 9/16)

   a. Investor Assumptions

   i. Risk tolerance
   ii. Time horizon
   iii. Financial goals/purpose

   b. Market Status and Assumptions- information about the market​

   i. Current level of the S&P500 at today? Is it a “bull” or “bear” market (Author 2)?
   ii. What are experts/media saying?
   iii. What are the factors that will affect the market in the short-term?
   iv. Forecast for next 3 months and time horizon

   c. Investment Strategy- plan based on investor and market information
   i. Types of stocks you will invest in?
   1. Blue-chip
   2. Growth
   3. Value
   4. Large/Med/Small Capitalization
   ii. How will you split up your investment?
   1. Diversification – 15 to 20 stocks
   2. By type, risk, or industry
   iii. What industries will you focus on and why?
   1. Select 8 to 10 and explain why
   2. Use Yahoo Finance Industry Center
   a. https://finance.yahoo.com/industries/
   iv. When will you sell and/or buy more?
   1. Could be a set percentage increase or decrease.
   2. Saving some cash for later?
   v. WATCHLIST – list 30 stocks you want to watch in a table that should include columns for stock name, ticker symbol, price, industry, beta INCLUDE IN APPENDIX
   1. Use excel spreadsheet to list out stocks
   vi. INVESTMENT PHILOSOPHY – 1 paragraph description summarizing how you want your funds invested in the stock market. Imagine that 1 paragraph is all you can give to a financial planner to invest on your behalf.
   1. Unless you are trying to win the game, your strategy should include diversification.

   III. Plan Implementation – 2 to 3 pages NOT INCLUDED IN PRE-STOCKTRAK

   a. Trading Diary- what trades you made and why? Format depends on how many trades you made.
   i. Initial Purchases with reasoning
   ii. Note for every time you checked your portfolio
   iii. Reasoning for buy and sell through the semester

   • 9/22/20 ​Checked Portfolio – no change, was up 2%

   • 10/5/20​Sell and Buy – sold XYZ stock because …and bought

   • 10/25/20​News – article came out about APPLE’s new iphones – they appear to be a major improvement. Will consider buying more stock in the coming weeks.

   IV. Portfolio Performance and Evaluations – 1 to 2 pages NOT INCLUDED IN PRE-STOCKTRAK

   a. Qualitative Evaluation – 1 to 2 paragraphs
   i. Best & worst trades- why?
   ii. Which decisions were good? Bad? Why?
   iii. Overall ranking

   b. Quantitative Evaluation (Regression)
   i. Percentage return of portfolio and S&P500 index
   ii. What would the return be the annualized returns? How does that compare with historic averages?
   iii. Portfolio beta – using regression – did you take on more or less risk than the market? Was that the plan and if not, why didn’t you follow the plan?
   c.
   1. Should be between .5 and 1.5 for most portfolio

   ii. Did you outperform or underperform versus the market?

   V. Summary – 1 page NOT INCLUDED IN PRE-STOCKTRAK

   a. Lessons Learned
   i. What did you learn about trading stocks?
   ii. What helped you the most from lecture or other resources?

   b. Alternative Approaches to Investing –what would you do or try differently next time?

   VI. Appendix NOT INCLUDED IN PRE-STOCKTRAK

   a. Watchlist
   b. Works Cited (optional or just use footnotes)
   c. Transaction Log/History
   d. Regression sheet and output
   2