Portfolio management is a tactic used by not only those in the financial sector of the business world, but also by individual’s managing their own personal finances. To perform well in the portfolio, it is not only focus to develop personal investment strategies, but analyzing current financial trend is also important. Tools such as Stock-Trak, an online portfolio simulation, allow students to gain hands on experience testing different investment strategies in a risk-free environment. From August 21 to December 3, 2017, I took part in Stock-Trak simulation. I was given an initial amount of $25,000 pretend cash with which to invest. My trading strategy was to buy when the stock was low and sell when it was high. Buying when the stocks were low …show more content…
Total gain from this trade was $95. I have used the technical analysis for this trade. The relevant strength index is indicated the increase in the strength of this share. The simple moving average showed that the prices from the past 10 days are positive. Currently stock is floating at $116.50 and selling the stock at the price $112.79 is not a good idea so I could have made more profit on this stock by holding it longer. Investing in Tesla’s 50 shares at the price of $320.08 based on the technical analysis gave me the opportunity to gain $331.53 in a short time. I have used RSI and band in my technical analysis to invest in Google stock. The wide band indicated that the stock will further move up but only for a short time. RSI indicated that the stock has more buyers in the market and it is best time to buy the stock. Investing in 20 stocks of Twitter at the price of $22.25 was to test my technical analysis. I believed that this stock will decrease in price. The RSI is relatively low and the band movement closer to average was indicating the less volatility in the market. Technical analysis clearly showed that there will be downtrend in the stock price. Twitter is trading at $20.71 that means the technical analysis proved the prediction of future …show more content…
Short selling is basically borrowing of shares. Short selling is a risky trade. In short selling, the trader believes the stock price will decrease and agree to buy stock at the reduce price. If the stock price falls, the trader make profit and buy stock at the reduced price but if the stock price rise then trader must pay the higher price to buy the stock in an open market which is a loss of profit. I have exercised short selling in some of my trades where I believed that stock price would decrease to understand this type of trade. Short selling Band of America 50 stocks at the price of $27.62 and buying back at the price of $26.12 gave me the total profit of $75. From my technical analysis, I believed that the stock price will fall. The moving average indicated that the stock is closing at a lower price than the opening price. The stock price is at $28.10 which is higher than $27.62. By holding the position, I could have loss the return on my