stock trak
Outline:
1) investment philosophy assets allocation page 48 security selection page 49
2) specific trades with clear justification methods: indictors :EMA, IRS, MACD, MA combine fundamental analysis and technical analysis examples: equity options and ETF Mutual funds positive profit:LIZ, AAPL, BK, CSCO,FMX, MX negative profit: APOL,SLB, SHLD,DWA, MOD,F
3) what went wrong and right with the specific trade and overall portfolio chapter8 page 260 loss aversion and anchoring, overconfidence.
Buy sell policy : -10%
4) calculate data technical analysis chapter 11 &6
5) summary, what I have learned through Stock Trak
Market efficiency, beat the market, random walk and stock price from chapter 7 , page 223. Diversification page 265, page 373 in chapter11
Stock Trak Project
Looking back the investment scenario, I notice my client who is a 35-year-old, unmarried childless male with $150,000 income and $50000 savings per year. Since his risk aversion is characterized as moderate, the portfolio ought to be “moderate” correspondingly.
The first fundamental investment decision is Assets Allocation.
Since that the assets allocation is the most important determinant of portfolio returns, before investment, I made a primary allocation: 35%-40% equity (including ETF), 30%-35% mutual funds and bunds, 10%-15% options and futures, 15%-20% cash.
When it comes into reality, I found it is hard to exactly follow the assets allocation planed at the beginning, since the market trends is hard to predict with high uncertainty, the financial market might has a big difference with we expected at the planning period. In that case, according to the market trends I expected, I changed a little in my portfolio allocation within a small range.
The second investment decision is Securities Selection.
At the beginning, with little knowledge about the stock market, I made some irrationally invests, because I didn’t follow closely to the financial news of the
1) investment philosophy assets allocation page 48 security selection page 49
2) specific trades with clear justification methods: indictors :EMA, IRS, MACD, MA combine fundamental analysis and technical analysis examples: equity options and ETF Mutual funds positive profit:LIZ, AAPL, BK, CSCO,FMX, MX negative profit: APOL,SLB, SHLD,DWA, MOD,F
3) what went wrong and right with the specific trade and overall portfolio chapter8 page 260 loss aversion and anchoring, overconfidence.
Buy sell policy : -10%
4) calculate data technical analysis chapter 11 &6
5) summary, what I have learned through Stock Trak
Market efficiency, beat the market, random walk and stock price from chapter 7 , page 223. Diversification page 265, page 373 in chapter11
Stock Trak Project
Looking back the investment scenario, I notice my client who is a 35-year-old, unmarried childless male with $150,000 income and $50000 savings per year. Since his risk aversion is characterized as moderate, the portfolio ought to be “moderate” correspondingly.
The first fundamental investment decision is Assets Allocation.
Since that the assets allocation is the most important determinant of portfolio returns, before investment, I made a primary allocation: 35%-40% equity (including ETF), 30%-35% mutual funds and bunds, 10%-15% options and futures, 15%-20% cash.
When it comes into reality, I found it is hard to exactly follow the assets allocation planed at the beginning, since the market trends is hard to predict with high uncertainty, the financial market might has a big difference with we expected at the planning period. In that case, according to the market trends I expected, I changed a little in my portfolio allocation within a small range.
The second investment decision is Securities Selection.
At the beginning, with little knowledge about the stock market, I made some irrationally invests, because I didn’t follow closely to the financial news of the