Description
In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio.
Project?Number:?0903? ? ? ? ?
Analysis?of?Stock?Market?Investment?Strategies?
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An?Interactive?Qualifying?Project?Report?Submitted?to?the?? Faculty?of? WORCESTER?POLYTECHNIC?INSTITUTE? in?partial?fulfillment?of?the?requirements?for?the? Degree?of?Bachelor?of?Science? by?
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Graham?Pentheny? ? ? Computer?Science? Interactive?Media?and?Game?Development?
? August?2009? ? Approved?by?Professor?Dalin?Tang,?Project?Advisor? ? ______________________________________? ?
Table?of?Contents? ?
I.?Acknowledgements………………………………………………………………………………………4? II.?Abstract………………………………………………………………………………………………………5? III.?List?of?Figures.……………………………………………………………………………………………6? IV.?List?of?Tables……………………………………………………………………………………………...8? 1.??Introduction……………………………………………………………………………………………..10? 1.1?Goals………………………………………………………………………………………………….10? 1.2?History?of?the?Stock?Market………………………………………………………………...10? 1.3?Pros?and?Cons?of?Financial?Investment………………………………………………..11? 2.??Financial?Investment?Opportunities…………………………………………………………13? ? ? ? ? 2.1?Stocks………………………………………………………………………………………………..13? 2.2?Bonds………………………………………………………………………………………………..14? 2.3?Certificates?of?Deposit………………………………………………………………………..15? 2.4?Mutual?Funds…………………………………………………………………………………….16?
3.??Stock?Market?Trading?Strategies……………………………………………………………….17? ? ? 3.1Day?Trading…………………………………………………………………………….………….17? 3.2?Swing?Trading……………………………………………………………………………………18?
4.??Simulated?Investments?and?Their?Results………………………………………………...19? ? ? ? ? ? ? ? ? 4.1?Goals?and?Strategies…………………………………………………………………………...19? 4.2?Company?Profiles…………………………………………………………………………….…19? ? ? ? ? ? ? 4.2.1?Apple?Inc.?…………………………………………………………………………….19? 4.2.2?Microsoft?Corp.?…………………………………………………………………….20? 4.2.3?Raytheon?Company……………………………………………………………….22? 4.2.4?Google?Inc.?…………………………………………………………………………...23? 4.2.5?Electronic?Arts?Inc.?……………………………………………………………….24? 4.2.6?NVIDIA?Corp.?……………………………………………………………………….25?
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4.2.7?Intel?Corp.?……………………………………………………………………………26? 4.2.8?Advanced?Micro?Devices,?Inc.?………………………………………………..27? 4.2.9?Yahoo!?Inc.?…………………………………………………………………………...28?
4.3?Simulation?1:?Swing?Trading……………………………………………………………….29? ? 4.3.1?Week?1…………………………………………………………………………………29? 4.3.2?Week?2…………………………………………………………………………………35? 4.3.3?Week?3…………………………………………………………………………………37? 4.3.4?Week?4…………………………………………………………………………………39? 4.3.5?Summary……………………………………………………………………………...41?
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4.4?Simulation?2:?Day?Trading…………………………………………………………………..42? 4.4.1?Week?1…………………………………………………………………………………42? 4.4.2?Week?2…………………………………………………………………………………45? 4.4.3?Week?3………………………………………………………………………………....48? 4.4.4?Week?4…………………………………………………………………………………50? 4.4.5Summary……………………………………………………………………………....53?
5.??Conclusion………………………………………………………………………………………………..55? References…………………………………………………………………………………………………….57? Appendix:?Complete?Transaction?Record……………………………………………….........59? ? ? ? ? ? ? ? ? ?
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I.?Acknowledgements?
? ? I?would?like?to?thank?Dr.?Dalin?Tang,?Professor?of?Mathematical?Sciences?and?
Biomedical? Engineering,? Worcester? Polytechnic? Institute,? for? his? advisement? over? this?project.??I?would?also?like?to?thank?my?friends?and?family?for?their?support.? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
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II.?Abstract?
? This?investigation?focused?on?what?makes?an?investor?profitable?in?the?stock?
market.? ? A3?week? investment? simulation? was? conducted,? utilizing? day? trading? and? swing?trading?strategies.??The?factors?that?attributed?to?the?success?of?the?simulation? were? analyzed,? and? used? to? increase? investing? power? and? ability.? ? The? knowledge? gained? through? this? experiment? will? be? used? to? make? intelligent? and? informed? investment?decisions?in?the?future.? ? ? ? ? ? ? ? ? ? ? ?
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III.??List?of?Figures?
Figure?1:?Apple?Inc.?(NASDAQ:AAPL)?Year?To?Date?Price?Chart…………………………....20? Figure?2:?Microsoft?Corp.?(NASDAQ:MSFT)?Year?To?Date?Price?Chart…………………...21? Figure?3:?Raytheon?Company?(NYSE:RTN)?Year?To?Date?Price?Chart……………………22? Figure?4:?Google?Inc.?(NASDAQ:GOOG)?Year?To?Date?Price?Chart………………………….24? Figure?5:?Electronic?Arts?Inc?(NASDAQ:ERTS)?Year?To?Date?Price?Chart……………….25? Figure?6:?NVIDIA?Corp.?(NASDAQ:NVDA)?Year?To?Date?Price?Chart……………………...26? Figure?7:?Intel?Corp.?(NASDAQ:INTC)?Year?To?Date?Price?Chart……………………………27? Figure?8:?Advanced?Micro?Devices,?Inc.?(NYSE:AMD)?Year?To?Date?Price?Chart…….28? Figure?9:?Yahoo!?Inc.?(NASDAQ:YHOO)?Year?To?Date?Price?Chart…………………………29? Figure?10:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?9th???June?19th,?2009)…....30? Figure?11:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?9th???June?19th,?2009)….32? Figure?12:?Ratheyon?Corp.?(NYSE:RTN)?Price?Chart?(June?9th???June?19th,?2009)…..33? Figure?13:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?30th???July?10th,?2009)…38? Figure?14:?Ford?Motor?Co.?(NYSE:F)?Price?Chart?(June?17th???June?27th?2009)………44? Figure?15:?Rockwell?Medical?Technologies?(NASDAQ:RMTI)?Price?Chart?? ? (June?23rd?–?July?3rd,?2009)………………………..…………………………………………...46?
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Figure?16:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?30th???July?10th,?2009)…...49? Figure?17:?Novell?Inc.?(NASDAQ:NOVL)?Price?Chart?(June?30th???July?10th,?2009)….50? Figure?18:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(July?7th???July?17th,?2009)……52? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
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IV.?List?of?Tables?
Table?1:?AAPL?Transactions?(June?17?–?June?26,?2009)…………………………...………….…30? Table?2:?MSFT?Transactions??(June?17?–?June?26,?2009)………………………………………..31? Table?3:?GOOG?Transactions?(June?17???June?24,?2009)…………………………………………32? Table?4:?INTC,?NVDA,?ERTS,?YHOO,?AMD?Transactions?(June?17th?–?? ? June?26th,2009)……………………………………………………………………………………...34?
Table?5:?GOOG?Transactions?(June?24???June?26,2009)………………………………………….35? Table?6:?RTN,?GOOG,?AAPL?Transactions?(June?29th???July?3rd,?2009)…………………...36? Table?7:?AAPL,?GOOG,?MSFT?Transactions?(July?7th,?2009)…………………………………..37? Table?8:?AAPL,?GOOG,?MSFT?Transactions?(July?9th,?2009)…………………………………..38? Table?9:?AAPL,?NOVL?Transactions?(July?15th,?2009)……………………………………….......39? Table?10:?NOVL,?AAPL?Transactions?(July?16th,?2009)…………………………………………40? Table?11:?GOOG?Transactions?(July?17th,?2009)…………………………………………………...40? Table?12:?CTV,?CSX?Transactions?(June?23rd,?2009)……………………………………………..42? Table?13:?F?Transactions?(June?23rd,?2009)…………………………………………………………43? Table?14:?RHT,?TCK?Transactions?(June?25th,?2009)…………………………………………….44? Table?15:?GOOG,?YHOO,?MSFT?Transactions?(June?26th,?2009)……………………………..45?
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Table?16:?RMTI?Transactions?(June?29th,?2009)…………………………………………………..46? Table?17:?GOOG?Transactions?(July?1st,?2009)……………………………………………………..47? Table?18:?GOOG,?AAPL?Transactions?(July?6th,?2009)…………………………………………...48? Table?19:?NOVL?Transactions?(July?10th,?2009)…………………………………………………….49? Table?20:?ORCL,?AAPL?Transactions?(July?14th,?2009)………………………………………….51? Table?21:?INTC,?GOOG?Transactions?(July?16th,?2009)………………………………………….51? Table?22:?F?Transactions?(July?17th,?2009)………………………………………………………….52? ? ? ? ? ? ? ? ? ? ?
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1.?Introduction?
1.1Goals? The main goals of this project were to investigate possible investment opportunities, logically weigh their respective risks and benefits, and make educated investment decisions. A detailed understanding of the risks and opportunities for high return presented in each investment opportunity were obtained through extensive research and analysis. This knowledge will aid in the future selection and execution of intelligent investments. A 3-week, $100,000 simulated stock market investment was made. This
simulated investment tested the strategies researched, and helped in the understanding of the stock market in general. This experience facilitated the identification and anticipation of market trends, and thusly influenced future investment decisions.
1.2History?of?the?Stock?Market? ? A stock market is “a place where stocks, bonds, or other securities are bought and
sold [1].” A share of stock, informally referred to as “stock,” is a share in the ownership of a corporation. Stocks entitle the owner to voting rights in major company decisions. Stocks can be bought and sold at a price determined by the financial success of the corporation and the overall demand for the corporation’s stock. A bond is essentially a loan from the investor to an individual or organization, often the government, which promises to repay the debt with interest at a later date.
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The New York Stock Exchange (NYSE) was the first stock market to be
established in the United States, tracing its roots back to 1792. The NYSE is also the largest stock exchange in the world in terms of capital invested. The combined
capitalization of all companies listed in the NYSE as of May 2009 is $10.4 trillion [2]. Over 419 billion stocks are traded each year, at an average price of $24.87 per share [2]. The financial well being of the United States is often judged by the performance of stocks in the New York Stock Exchange. A stock market crash is a sudden decline in the average price of stock. Panicked investors withdrawing their money, as well as underlying economic instability drive stock market crashes. The great 1929 crash of the NYSE was a primary cause of the Great Depression, the worst economic crisis the United States has ever seen. More recently, the NYSE crash of 2008 was caused primarily by securities on defaulted loansgiven to under-qualified individuals. Many large banks and loan-issuing organizations collapsed because of these defaulted, “sub-prime” loans. The crash of the NYSE affected the economies of many other countries as well, leading to the world financial crisis of 2008. ? 1.3Pros?and?Cons?of?Financial?Investment? ? Investing money into unpredictable, unstable, and uncontrollable facets can be
extremely risky. Like the lottery, the success of stock market trading is partly attributed to luck. Many people have lost vast amounts of money through poor investment
decisions that they’ve made. Recently, investors with shares in loan-giving companies and American car manufacturers, which were previously a fairly stable investment, have
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suffered severe losses due to the economic crisis. Investors must understand and accept this risk as an intrinsic part of investing. There are, however, attractive benefits to successful financial investments. With intelligent decisions, investing can yield significant capital gains, stability, and security. By analyzing the trends of the stock market, the companies one is invested in, and by followingan investment strategy, one can be successful in the stock market. There has been much research into various ways of analyzing the stock market as a means of facilitating intelligent investment decisions. These “intelligent decisions” are paramount to the success of an investment, and will be examined in this experiment. ?
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2.??Financial?Investment?Opportunities?
2.1?Shares?of?Stock? The most well-known investment opportunity is shares of stock in a company. The general public is not allowed to trade stock in the New York Stock Exchange; instead the public trades through stockbrokers. Stockbrokers will buy or sell stock on behalf of an individual for a commission, and often distinguish themselves by the investment advice they give their customers. The popularity of the Internet has facilitated websites offering a means for customers to trade stock for a minimal fee (usually around $10 per trade). The Internet has also broadened the trading power of the stock exchange, allowing for millions of shares to be bought and sold each day. Investment in stocks can be risky. The return on investment (ROI) of stock can be hard to predict, as the price of stock is determined by the financial success of the company, the demand for that company’s stock by investors, and the overall confidence investors have in the market at a given moment. Investment in the stock market depends as much upon factual, logical decisions as well as “gut-feeling” emotional ones. For this reason, there are many stock market investment strategies that help investors make tough decisions. Investors may choose to have their stock “portfolio” (the investor’s collection of stocks) managed by their stockbroker, thereby removing the burden and responsibility from the investor. Many stockbrokers advertise a guaranteed yearly return percentage as an incentive to invest money with them. The investor trusts their stockbroker to make successful investment decisions on their behalf, forfeiting a portion of the return as commission.
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Because of its relative unpredictability and therefore inherent possibility for huge returns, the stock market is one of the most popular investment decisions among private investors. The stock market’s constant fluctuation empowers investors with a multitude of opportunities for substantial profits. This possibility of high returns and the
unpredictability of the market are enticing to excitable investors, however with wise decision-making, the stock market can be a stable, long-term investment opportunity as well.
2.2?Bonds? Bonds are a loan, granted by the investor (“the holder”), to a corporation or individual (“the issuer”, usually the government). The loan agreement includes a
specified amount of time, after which the bond is said to “mature.” A specified amount of interest is aggregated semi-annuallyduring the time before the bond matures, after which no further interest is accrued. Once the bond has matured, the holder can cash the bond and regain the principle plus accrued interest. The holder usually cannot “cash” the bond before the time it matures without facing a penalty, often resulting in an overall loss for the investor. Due to their guaranteed ROI, bonds are stable assets in an investor’s portfolio. Investors may also choose to invest in “bond funds,” where a third party broker invests in the bonds of many companies. The private investor takes a stake in the principle
investments made by the broker, and receives a portion of the earnings along with their principle. Bond funds can be a more profitable choice for private investors because a
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brokerage can often negotiate the interest of a bond to a higher rate than would be available for a private investor. Because of bonds’ stability, guaranteed ROI, and
because they are unaffected by the stock market,bonds are popular as long-term investments, and during uncertain financial times.
2.3Certificates?of?Deposit? ? Certificates of deposit (informally referred to as “CDs” or “CODs”) are
investments made in banks or credit unions in the form of a long-term savings account. A COD works very much in the same way a bond does. The investor loans a bank a principle amount, on which the bank pays interest. Like a bond, the investor collects the principle and interest when the COD matures. Certificates of deposit have traditionally been a virtually risk-free, guaranteed (they are insured by the FDIC), long-term investment opportunity. CODs are, however, susceptible to interest-rate fluctuations (in variable-interest rate CODs), and inflation. Because many CODs are investments made over many years, the intrinsic value of the principle plus interest may not exceed the value of the principal upon maturation due to inflation and poor interest rates. Despite this, most certificates of deposit are a secure, stable, long-term investment opportunity. ? ? ?
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2.4Mutual?Funds? ? Mutual Funds are an investment in a fund, managed by a fund manager, which is
invested in many different small investments. The fund manager trades these small investments regularly, generating a return for the fund principle. The investors are paid a portion of this return.The value of a mutual fund is determined by it’s net asset value (NAV), or the combined worth of the fund’s holdings (the fund’s investment portfolio). Mutual Funds are usually a medium-risk, medium-return investment. Due to their professional management, mutual funds are an easy opportunity for inexperienced investors. The most common type of mutual fund is an “equity fund” which is comprised entirely of stock investments. Because of their dependence on the stock market, mutual funds are riskier than CODs, however they often lead to greater yield. ? ? ? ? ? ? ? ? ?
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3.??Stock?Market?Trading?Strategies?
3.1?Day?Trading? Day?trading?is?the?strategy?of?buying?and?trading?a?stock?within?the?same?day.?? Day? trading? is? a? very? fast?paced? investment? strategy,? relying? on? quick,? often? emotional,?decisions?from?the?investor.??Day?trading?relies?on?the?daily?fluctuation?of? stock?values.??Investors?hope?to?ideally?buy?stock?at?its?lowest?value?that?day,sell?it? later?that?day?at?its?peak?value,?and?earn?the?difference.??Day?traders?do?not?care?as? much? about?what?company? they?are?buying?stock? in,? only?on?that?stock’s? potential? for?growth?that?day.??There?are?many?subtle?strategies?to?day?trading,?along?with?a? keen?sense?for?stocks?that?are?about?to?gain?value,?that?make?an?investor?successful.??? Because? of? the? rapid? pace? of? day? trading,? it? has? a? notorious? reputation? for? huge?returns,?as?well?as?huge?losses.??Many?single?investors?make?millions?of?dollars? per? year? solely? with? a? day? trading? strategy,? though? this? kind? of? return? requires? an? experienced? investor? willing? to? take? significant? risks.? ? Day? trading? can? be? so? risky? that,? with? a? series? of? poor? decisions,? an? investor? can? loose? their? entire? working? capital?in?one?day.??? With? the? popularity? of? the? Internet,? many? investors? can? make? day? trading? transactions? from? their? homes.? ? These? investors? use? websites? that? offer? trading? services?for?a?small?fee.??This?has?led?to?a?rise?in?personal?investors?employing?a?day? trading?strategy.??Day?trading?was?further?investigated?in?the?investment?simulation.? ? ? ? 17?
3.2?Swing?Trading? ? Swing?Trading?is?the?strategy?of?trading?at?the?peaks?of?price?oscillation?over?
a?period?of?a?few?days?or?weeks.??This?strategy?is?more?involved?than?Day?Trading,? requiring? an? investor? with? a? watchfuleye? and? a? thorough? understanding? of? the? company?they?are?investing?in.??The?investor?must?determine?when?the?best?time?to? sell?and?buy?a?stock?is,?based?on?recent?fluctuation?activity,?news,?and?the?investor’s? intuition.? ? Swing? trading? involves? research? into? different? markets,? and? into? what? makes? investors? excited? about? a? company.? ? In? the? case? of? Apple,? investors? are? excited? by? new? product? releases? and? tech?related? conferences? that? showcase? new? Apple? technologies.? ? Usually? these? events? will? have? a? direct? impact? on? the? price? of? Apple?stock.??An?investor?can?utilize?the?events’?impacts?to?make?a?profit.??A?swing? trader?must?be?able?to?anticipate?the?changes?of?upcoming?and?current?events?to?the? price? of? a? stock,? and? employ? that? information? to? make? educated? purchasing? decisions.??? ? Due?to?the?amount?of?research?involved,?swing?trading?is?usually?a?less?risky?
strategy? than? day? trading.? ? Day? trading? focuses? on? current? growth? and? fluctuation,? whereas?swing?trading?profits?off?underlying?trends?in?a?stocks’?price.??Swing?trading? can? involve? investments? lasting? a? few? days,? weeks? or? even? months.? ? The? flexibility? presented? with? a? swing? trading? simulation? made? it? ideal? for? this? short? investment? simulation.? ?
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4.??Simulated?Investments?and?Their?Results?
4.1?Goals?and?Strategies? ? The? primary? goal? of? this? simulation? was? to? gain? a? better? understanding? of?
personal? investment? opportunities.? ? The? financial? goal? set? for? this? simulated? $100,000?investment?was?a?return?of?at?least?$4,000?over?the?span?of?3?weeks.??This? required?an?average?total?gain?of?at?least?$200?per?day.??? ? For?this?investment?simulation?a?swing?trading?scheme?was?chosen?because?
of?its?potential?for?gain?within?a?short?time?period.??A?Day?Trading?scheme?was?also? employed?in?order?to?better?understand?the?subtleties?that?make?it?profitable.??Other? trading?strategies?were?out?of?the?financial?scope?and?timeframe?of?this?simulation.??? ? Seven?companies?were?chosen?for?the?swing?trading?simulation.??They?were?
chosen?based?on?a?deep?understanding?of?the?goods?and?services?they?offer,?as?well? as?their?reputation?in?their?respective?domains.??Specific?companies?were?not?chosen? for?the?day?trading?simulation.??Instead?the?focus?was?only?on?the?short?term?growth? of?the?stock’s?value.? ? 4.2?Company?Profiles? 4.2.1?Apple?Inc.?(NASDAQ:AAPL)? ? Apple?Inc.?designs,?manufactures,?and?markets?personal?computers,?portable?
music? players,? and? cell? phones? [3].? ? They? also? sell? a? variety? of? software,? computer? accessories,?and?computer?training?services.??Since?its?inception?in?1977,?Apple?has? ? 19?
been? a? leading? maker? of? consumer? electronics? and? personal? computers.? ? The? company? struggled? in? the? late? 1990’s? with? diminished? sales,? though? with? the? introduction?of?the?iPod?brand?mp3?player?in?2001,?it?was?re?established?as?a?leader? in? the? consumer? electronics? market.? ? Since? its? introduction,? there? have? been? over? 151,000,000? [4]? iPods? sold? worldwide,? dominating? the? mp3? player? market.? ? Apple? computers’? market? share? continues? to? climb,? and? record? sales? are? consistently? recorded? every? quarter.? ? Apple? is? notorious? for? having? very? avid? fans? of? their? products.??Fans?will?often?line?up?outside?an?Apple?store?hours,?or?even?days,?before? it?opens?to?be?the?first?to?purchase?the?latest?Apple?gear.?
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Figure?1:?Apple?Inc.?(NASDAQ:AAPL)?YearToDate?Price?Chart?
? 4.2.2?Microsoft?Corp.?(NASDAQ:MSFT)? Microsoft? Corp.? designs,? produces,? and? markets? the? Windows? operating? system,? a? library?of?consumer?software?titles,?video?game?consoles,?consumer?electronics,?and? a? modest? computer? peripheral? selection.? ? Bill? Gates,? among? others,? founded? ? 20?
Microsoft? in? 1975? with? the? intent? of? creating? a? consumer?oriented? computer? operating? system.? ? ? Microsoft? Windows? is? currently? used? by? over? 85%? of? personal? computers? worldwide,? [6]? however? the? rise? in? popularity? of? Apple? computers? is? causing? a? steady? decline? in? Windows? market? share.? Microsoft? looks? to? their? new? Windows? 7? operating? system? to? entice? consumers? to? switch? back? to? Windows.?? Microsoft?has?also?run?a?specifically?anti?Apple?ad?campaign,?looking?to?expose?some? of?the?benefits?of?using?Windows?over?Apple’s?Macintosh?computers.???
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Figure?19:?Microsoft?Corp.?(NASDAQ:MSFT)?YearToDate?Price?Chart?
? ? Microsoft’s?Xbox?360?continues?to?be?a?strong?competitor?in?the?video?game?
console?market.??The?Xbox?360?holds?a?steady?second?place?in?overall?sales?in?the?US? (behind?Nintendo’s?Wii?console)?[5],?and?a?strong?reputation?as?a?significant?gaming? platform.? ? Microsoft? Office,? a? suite? of? business? software,? has? been? extremely? profitable,?contributing?to?the?company’s?consistent?growth.??? ? ? 21?
4.2.3?Raytheon?Company?(NYSE:RTN)? ? Raytheon?is?a?major?American?military?contractor?that?manufactures?defense?
systems? and? defense? electronics.? ? Raytheon? was? established? in? Cambridge,? Massachusetts?in?1922?and?is?currently?headquartered?in?Waltham,?Massachusetts.?? It?is?currently?the?world’s?largest?producer?of?guided?missiles,?[7]?including?the?MIM? 104? Patriot? cruise? missile,? which? played? a? significant? role? in? the? Persian? Gulf? War.?? Raytheon?also?manufactures?air?traffic?control?systems,?radar?systems,?satellite?and? communications?systems,?radioactive?materials?detection?systems,?semiconductors,? missiledefense?systems,?and?hi?tech?training?simulators.??Raytheon’s?broad?scope?of? products?and?their?wide?use?throughout?the?military?generate?billions?of?dollars?in? revenue?for?this?defense?giant.???
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Figure?3:?Raytheon?Company?(NYSE:RTN)?YearToDate?Price?Chart?
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4.2.4?Google?Inc.?(NASDAQ:GOOG)? ? GoogleInc.?is?the?provider?of?the?leading?Internet?search?service?of?the?same?
name.? ? It? also? provides? email,? mapping,? office? productivity,? and? video? sharing? services.? ? Google? Inc.? was? founded? by? two? students? at? Stanford? University? in1998,? with?the?goal?“to?organize?the?worlds?information?and?make?it?universally?accessible? and?useful.?[9]”?It?has?been?listed?as?the?#1?place?to?work?by?Fortune?Magazine[8]? and? is? notorious? for? pursuing? unique? approaches? to? productivity? and? workplace? atmosphere.??Google?continues?to?be?a?leader?in?web?application?research?and?web? search?research.??Google?has?consistently?grown?and?expanded?to?become?one?of?the? country’s?largest?and?most?profitable?businesses.??
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Figure?4:?Google?Inc.?(NASDAQ:GOOG)?YearToDate?Price?Chart?
? 4.2.5?Electronic?Arts?Inc.?(NASDAQ:?ERTS)? ? Electronic? Arts? is? a? leading? producer,? designer,? and? distributor? of? video?
games.??Electronic?Arts?(informally?“EA”)?was?started?in?1982?and?was?a?pioneer?in? the?consumer?computer?game?market.??EA?has?created?some?of?the?most?well?known? and? longest?running? game? franchises,? such? as? Need? for? Speed,? Medal? of? Honor,? The? Sims,?and? Battlefield.The? Madden?NFL? football?game?series?has?consistently?been?the? best?selling?videogame?of?the?past?few?years,?and?retains?an?exclusive?license?for?all? NFL?team?names,?logos,?and?players.??Despite?their?fairly?dismal?sales?last?year,?EA?is?
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24?
bouncing?back?with?more?blockbuster?titles,?such?as?Rock?Band,?further?contributing? to?EA’s?multi?billion?dollar?yearly?revenue.?
?
Figure?5:?Electronic?Arts?Inc?(NASDAQ:ERTS)?YearToDate?Price?Chart?
? 4.2.6?NVIDIA?Corp.?(NASDAQ:NVDA)? ? NVIDIA? Corp.? designs? graphics? processing? units? for? personal? computers,?
workstations,? and? video?game? consoles.? ? NVIDIA? was? founded? in? 1993? as? a? competitor?to?the?popular?3dfx?brand?graphics?cards?that?dominated?the?computer? graphics? market? of? the? mid?to?late? 1990’s.? ? In? 2000,? NVIDIA? acquired? 3dfx? and? became?one?of?the?top?graphics?card?manufacturers?along?with?rival?ATI.??NVIDIA’s? GeForce?chipset?line?has?been?very?successful?in?the?consumer?graphics?card?market,? outselling? competitive? ATI? models.? ? NVIDIA’s? Quadro? series? is? popular? with? computer?aided?design?(CAD)?workstations?and?professional?graphics?applications.?? NVIDIA? continues? to? push? the? boundaries? of? computer? graphics,? creating? some? of? the?most?advanced?graphics?processors?in?the?world.??Their?bleeding?edge?consumer? ? 25?
products? have? driven? NVIDIA’s? success,? generating? consistently? escalating? multi? billion?dollar?annual?revenue.?
?
Figure?6:?NVIDIA?Corp.?(NASDAQ:NVDA)?YearToDate?Price?Chart?
? 4.2.7?Intel?Corp.?(NASDAQ:INTC)? ? Intel?is?the?world’s?most?profitable?computer?processor?manufacturer.??Intel?
was? founded? in? 1968,? and? has? been? a? leading? pioneer? in? computer? hardware? development.??Their?“Intel?Inside”?marketing?campaign?in?the?1990’s?has?made?them? a? household? name.? ? Intel’s? Pentium? brand? processors? continue? to? be? some? of? the? most?powerful?consumer?processors?available.??Apple?computers?transitioned?from? the? in?house? developed? “PowerPC”? processor? to? Intel’s? “Core? 2? Duo”? line? of? processors?in?2005,?adding?to?Intel’s?already?strong?laptop?processor?market?share.?? Intel? also? manufactures? flash? memory? used? in? USB? thumb? drives? and? computer? solid?state? disk? drives.? ? Despite? declined? sales? due? to? the? recent? economic? crisis,?
?
26?
Intel? continues? to? outsell? rival? AMD? and? support? their? reputation? as? a? significant? computer?hardware?manufacturer.???
?
Figure?7:?Intel?Corp.?(NASDAQ:INTC)?YearToDate?Price?Chart?
? 4.2.8?Advanced?Micro?Devices,?Inc.?(NYSE:AMD)? ? Advanced? Micro? Devices? (AMD)? is? a? manufacturer? of? computer? processors.??
AMD? is? the? second?largest? global? supplier? of? consumer? computer? processors,? after? Intel.? ? AMD? was? founded? in? 1969? with? a? reverse?engineered? clone? of? the? popular? Intel?8080?microprocessor.??Since?then,?AMD’s?processors?have?grown?in?popularity.?? AMD’s? recent? developments? have? mainly? been? oriented? towards? the? mobile? computing? market.? AMD’s? Turionprocessors? have? been? especially? popular? in? the? mobile?computing?market.??In?2006,?AMD?acquired?ATI,?the?second?largest?graphics? processor?company?in?the?hopes?of?uniting?the?GPU?and?CPU?into?one?chip.??AMD?is?a? significant?competitor?in?the?mobile?processing?market,?and?continues?to?grow.?
?
27?
?
Figure?8:?Advanced?Micro?Devices,?Inc.?(NYSE:AMD)?YearToDate?Price?Chart?
? 4.2.9?Yahoo!?Inc.?(NASDAQ:YHOO)? ? Yahoo!? Inc.? is? a? web?based? company? known? for? its? search? engine,? email,?
news,? web?portal,? and? other? services.? ? Yahoo!? Inc.? was? incorporated? in? 1995? and? quickly?became?a?household?internet?brand?name.??Yahoo!?provides?many?consumer? services?including?email,?IM?and?SMS?messaging.??Yahoo!?is?also?a?major?aggregator? of? news? and? finance? information,? and? a? pioneer? in? web?application? research.?? Yahoo!’s? search? feature? was? recently? bought? out? by? Microsoft,? and? is? said? to? be? replaced? with? Microsoft’s? new? Bing? search? service? in? the? near? future.? ? Yahoo!’s? website?receives?over?1.575?billion?visitors?annually,?with?3.4?billion?page?views?per? day,?making?it?the?second?most?visited?website?in?the?world[10].??
?
28?
?
Figure?9:?Yahoo!?Inc.?(NASDAQ:YHOO)?YearToDate?Price?Chart?
? ? 4.3?Simulation?1:?Swing?Trading? 4.3.1?Week?1:?June?17?–?June?26,?2009 ? This?first?week?begins?on?Wednesday,?June?17th?and?ends?on?Friday,?June?26th.??
I? combined? the? first? half? a? week? with? the? first? full? week,? because? I? didnot? have? sufficient?data?to?comment?on?for?the?first?half?week.??? ? My? initial? investment? consisted? of? stock? in? nine? companies.? ? I? purchased?
Apple?stock?in?anticipation?of?the?company’s?new?iPhone?3G?S?launch,?at?$135.58?per? share.? ? Apple? stock? has? always? been? considered? a? good? investment? because? of? its? moderate? fluctuation? and? general? growth? trend.? ? Despite? these? benefits,? it? is? very? expensive?stock?and?therefore?quite?inaccessible?without?a?significant?investment.??I?
?
29?
sold?my?100?shares?of?Apple?stock?late?Friday,?June?19th,?after?the?launch?of?the?new? iPhone?caused?a?spike?in?the?stock?price,?for?yield?of?$288.???
Table?1:?AAPL?Transactions?(June?17?–?June?26,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/17/09
AAPL
buy
$135.58
100
$13,568.00
86,432.00
06/19/09
AAPL
sell
$138.66
100
$13,856.00
288.00
25,278.50
288.00
?
?
Figure?20:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?9??June?19,?2009)?
I?purchased?Microsoft?stock?on?Wednesday,?June?17thbecause?of?the?launch?of? Microsoft’s? new? Bing? search? service.? ? News? of? this? new? launch? has? instilled? confidence? in? investors? and? therefore? caused? a? jump? in? the? stock? value.? ? Microsoft? stock?has?shown?somewhat?stagnant?growth,?possibly?due?to?the?lack?of?consumer? interest? in? their? new? Vista? operating? system.? ? Despite? this,? Microsoft? stock? price? oscillates?quite?a?bit,?presenting?the?possibility?of?steady?profit.??I?bought?200?shares? ?
30?
of? Microsoft? stock? at? $23.68.? ? Despite? the? launch? of? their? new? search? service,? the? value?of?Microsoft?stock?declined.??I?waited?for?a?relative?spike?in?price?and?sold?half? of?my?Microsoft?stock?on?Tuesday?the?24th?for?a?loss?of?$20.00.?
Table?2:?MSFT?Transactions??(June?17?–?June?26,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds 06/17/09 MSFT buy $23.68 200 $4,746.00 Profit/Loss Cash 81,686.00 Profit Total Total
06/23/09
MSFT
sell
$23.63
100
$2,353.00
(20.00)
48,258.50
160.00
06/25/09
MSFT
sell
$23.67
100
$2,357.00
(16.00)
101,779.20
1,742.20
? I?bought?Google?stock?because?of?my?confidence?in?the?Google?brand?and?the? stock’s?recent?fluctuation.??Google?stock?is?extremely?expensive,?and?like?Apple,?quite? inaccessible? to? personal? investors.? ? I? bought? 75? shares? on? Wednesday? the? 17thfor? $415.16?per?share,?and?sold?it?early?Friday?the?19th?for?$418.28?per?share,?for?a?gain? of?$214.00.??I?bought?75?more?shares?Monday,?June?22nd?because?of?my?success?with? Google? stock,? and? its? momentary? dip? in? price? that? day.? ? I? sold? all? 75? shares? on? Wednesday?the?24th?? ? ? ? ?
?
31?
Table?3:?GOOG?Transactions?(June?17??June?24,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/17/09
GOOG
buy
$415.16
75
$31,147.00
21,726.50
06/19/09
GOOG
sell
$418.28
75
$31,361.00
214.00
56,639.50
502.00
06/22/09
GOOG
buy
$405.30
75
$30,407.50
42,353.50
06/24/09
GOOG
sell
$410.30
75
$30,762.50
355.00
83,809.00
1,127.00
?
?
Figure?21:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?14??June?24,?2009)?
I?bought?Raytheon?stock?Wednesday?the?17th?due?to?the?fact?that?the?United? States? is? entangled? in? two? wars? overseas.? ? Raytheon? has? always? been? a? strong? company,? and? I? believed? that? because? of? the? conflicts? in? the? Middle? East? and? elsewhere,? Raytheon? would? receive? increased? business.? ? I? bought? 350? shares? at? $45.31?per?share?on?Wednesday,?and?sold?it?two?days?later?at?$46.09?for?a?net?profit? of?$253.00.? ? 32?
?
? Figure?22:?Raytheon?Corp.?(NYSE:RTN)?Price?Chart?(June?9??June?19,?2009)?
I?
also?
purchased?
Yahoo!(NASDAQ:YHOO),?
Intel(NASDAQ:INTC),?
NVIDIA(NASDAQ:NVDA),? Electronic? Arts(NASDAQ:ERTS),? and? AMD(NYSE:AMD)? stock?on?Wednesday?the?17thbecause?of?my?confidence?in?these?companies,?however? these?stocks?did?relatively?poorly?this?week.??I?deemed?these?bad?investments,?and? after?the?price?spiked?somewhat?on?Wednesday?the?24th,?I?cut?my?losses?and?sold?all? my?stocks?for?these?companies,?taking?a?total?net?loss?of?$916.??? ? ? ? ? ?
?
33?
Table?4:?INTC,?NVDA,?ERTS,?YHOO,?AMD?Transactions?(June?17?–?June?26,?2009)?
Net Date 06/17/09 06/17/09 06/17/09 06/17/09 06/17/09 06/23/09 06/23/09 06/24/09 06/24/09 06/24/09 Symbol INTC NVDA ERTS YHOO AMD AMD ERTS INTC YHOO NVDA buy/sell buy buy buy buy buy sell sell sell sell sell Price $16.14 $11.28 $20.83 $15.60 $4.08 $3.52 $20.44 $16.19 $15.28 $10.93 Shares 400 200 200 400 1,000 1000 200 400 400 200 Cost/Proceeds $6,466.00 $2,266.00 $4,176.00 $6,250.00 $4,090.00 $3,510.00 $4,078.00 $6,466.00 $6,102.00 $2,176.00 (580.00) (98.00) 0.00 (148.00) (90.00) Profit/Loss Total Cash 75,220.00 72,954.00 68,778.00 15,512.50 11,422.50 45,863.50 53,046.50 90,275.00 96,517.00 98,693.00 175.00 772.00 1,127.00 1,119.00 1,029.00 Total Profit
? I?bought?200?shares?of?Google?stock?on?Wednesday,?June?24th?at?$409.00?and? 40?more?after?the?price?declined?to?$407.67.??I?purchased?more?Google?stock?because? the?stock?price?had?been?trending?upwards?since?I?sold?my?initial?Google?investment? on?the?19th.??After?I?purchased?my?Google?stock,?the?price?continued?to?decline?and?I? decided? to? sell? it? all? before? I? lost? more? money.? ? A? few? hours? after? I? bought? them,? I? sold?the?latter?40?shares?for?$408.05?and?the?other?200?for?$408.57?for?a?combined? net?loss?of?$110.80.?? ? ? ?
?
34?
Table?5:?GOOG?Transactions?(June?24??June?26,2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/24/09
GOOG
buy
$409.00
200
$81,810.00
16,963.00
06/24/09
GOOG
buy
$407.67
40
$16,316.80
646.20
06/24/09
GOOG
sell
$408.05
40
$16,312.00
(4.80)
16,958.20
1,104.20
06/24/09
GOOG
sell
$408.57
200
$81,704.00
(106.00)
98,662.20
998.20
? Towards?the?end?of?the?day?Friday?the?26th,?I?bought?1000?shares?of?Raytheon? stock,?on?news?of?a?new?multi?billion?dollar?contract?from?the?US?military.??? ? 4.3.2?Week?2:?June?29?–?July?3,?2009? ? The? second? week? of? the? simulation,? I? was? not? nearly? as? aggressive,? as? the?
market?took?a?steady,?continued?decline.??I?sold?my?Raytheon?stock?Monday?the?29th? when?the?price?began?to?fall?dramatically,?suffering?a?$70.00?loss.??Thursday,?July?2nd? I?became?slightly?optimistic?of?a?late?week?rally?so?I?purchased?fifty?shares?of?Google? stock? at? $409.66,? as? well? as? 300? shares? of? Apple? at? $140.35,? and? 500? shares? of? Raytheon?at?$43.28.??I?chose?these?stocks?because?I?was?confident?that?they?would?do? well.??The?market?continued?to?fall,?albeit?less?dramatically,?forcing?me?to?sell?these? stocks?before?they?turned?into?significant?losses.??I?managed?to?sell?all?my?stocks?for?
?
35?
a?net?loss?of?$325.50?before?watching?their?prices?drop?significantly?towards?the?end? of?the?day?Friday.???
Table?6:?RTN,?GOOG,?AAPL?Transactions?(June?29??July?3,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/29/09
RTN
sell
$44.56
1000
$44,550.00
(70.00)
46,704.20
2,177.20
07/02/09
GOOG
buy
$409.66
50
$20,493.00
82,183.20
07/02/09
AAPL
buy
$140.35
300
$42,115.00
40,068.20
07/02/09
RTN
buy
$43.28
500
$21,650.00
18,418.20
07/03/09
GOOG
sell
$408.49
50
$20,414.50
(78.50)
38,832.70
2,560.70
07/03/09
RTN
sell
$43.01
500
$21,495.00
(155.00)
60,327.70
2,405.70
07/03/09
AAPL
sell
$140.02
300
$41,996.00
(119.00)
102,323.70
2,286.70
? ? This?week?has?taught?me?that?despite?what?I?may?think,?there?will?always?be? weeks?where?it?is?very?hard?to?make?a?profit.??It?has?also?shown?me?that?sometimes? the? best? thing? to? do? is? realize? that? you’ve? made? a? poor? investment? and? cut? your? losses.??? ?
?
36?
4.3.3?Week?3:?July?6?–?July?10,?2009? ? The?market?rose?early?in?the?week,?and?declined?towards?the?end?of?the?week,?
however?Google?stock?continued?to?rise?consistently?throughout?the?week.??I?bought? 100? shares? of? it? the? morning? of? Tuesday,? July? 7th? for? $40,175.00? at? $401.65? per? share.? ? I? also? bought? 300? shares? of? Apple? stock? at? ? $136.99? per? share,? totaling? $41.107,?and?950?shares?of?Microsoft?stock?at?$22.54,?totaling?$21,689.00.???
Table?7:?AAPL,?GOOG,?MSFT?Transactions?(July?7,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/07/09
AAPL
buy
$136.99
300
$41,107.00
62,419.70
07/07/09
GOOG
buy
$401.65
100
$40,175.00
22,244.70
07/07/09
MSFT
buy
$22.82
950
$21,689.00
555.70
? ? Thursday?I?decided?to?sell?all?my?stock?as?the?market?wasn’t?showing?signs?of?
recovery.??I?lost?$286.00?in?my?Microsoft?investment,?selling?all?950?shares?at?$22.54.?? I? sold? my? Apple? stock? for? a? meager? $25? profit? at? $137.14? per? share.? ? My? Google? investment,? however,? was? significantly? better.? ? I? sold? all? 100? shares? Thursday? for? $413.92?per?share,?for?a?net?profit?of?$1,207.00,?the?second?most?substantial?single? investment?gainI?had?during?this?simulation.? ?
?
37?
Table?8:?AAPL,?GOOG,?MSFT?Transactions?(July?9,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/09/09
MSFT
sell
$22.54
950
$21,403.00
(286.00)
21,958.70
3,203.70
07/09/09
AAPL
sell
$137.14
300
$41,132.00
25.00
63,090.70
3,228.70
07/09/09
GOOG
sell
$413.92
100
$41,382.00
1,207.00
104,472.70
4,435.70
?
?
Figure?23:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?30?July?10,?2009)?
?
Overall?this?week?was?profitable?due?to?my?ability?to?anticipate?the?market’s?
rise.? ? Google? stock? continued? to? be? a? good? investment? for? me,? though? Apple? was? significantly? less? predictable? than? normal.? ? This? week? has? shown? me? that? having? a? portfolio?of?a?many?companies?yields?the?best?chances?of?significant?profit.? ? ?
?
38?
4.3.4?Week?4:?July?13?–?July?20,?2009? ? Overall?this?week?provided?a?consistent?climbing?market,?which?was?very?
profitable?for?me.??I?invested?in?Apple?early?Wednesday,?July?15th?as?I’ve?had? generally?good?luck?with?Apple?stock?and?in?anticipation?of?a?rising?market?following? last?week’s?fairly?dull?market.??I?bought?300?shares?of?Apple?stock?at?$145.13?per? share,?totaling?$43,549.00.??I?also?bought?Novell?(NASDAQ:NOVL)?stock?Wednesday? because?their?price?had?dipped?unusually?low?due?to?allegations?of?security? vulnerabilities?in?their?SUSE?operating?system.??I?capitalized?on?this?situation?and? bought?13000?shares?at?$4.37?per?share,?totaling?a?$56,820.00?investment.???
Table?9:?AAPL,?NOVL?Transactions?(July?15,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/15/09
AAPL
buy
$145.13
300
$43,549.00
62,250.70
07/15/09
NOVL
buy
$4.37
13000
$56,820.00
5,430.70
? ? Thursday?the?16thI?sold?both?my?Novell?stock?and?my?Apple?stock.??I?sold?all?
300? shares? of? Apple? stock? for? $146.54? per? share? for? a? gain? of? $403.00.? ? My? Novell? investment,?however,?was?vastly?more?profitable.??I?sold?all?13000?shares?of?Novell? stock? at? $4.55? per? share,? yielding? a? profit? of? $2,320.00.? ? My? Novell? trade? was? the? highest?single?trade?profit?I?made?in?this?simulation.??? ?
?
39?
Table?10:?NOVL,?AAPL?Transactions?(July?16,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/16/09
NOVL
sell
$4.55
13000
$59,140.00
2,320.00
64,570.70
8,082.70
07/16/09
AAPL
sell
$146.54
300
$43,952.00
403.00
72,232.70
8,485.70
? I?bought?100?shares?of?Google?stock?on?Friday?the?17that??$429.61?for?a?total? investment? of? $42,971.00.? ? I? decided? to? purchase? Google? stock? because? of? my? profitable? past? investments? in? it? and? because? it? had? temporarily? fallen? in? price.? ? I? sold?it?the?morning?of?Monday?July?20that?$431.96?for?a?net?profit?of?$215.00.???
Table?11:?GOOG?Transactions?(July?17,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/17/09
GOOG
buy
$429.61
100
$42,971.00
65,135.70
07/20/09
GOOG
sell
$431.96
100
$43,186.00
215.00
109,001.70
8,964.70
? This?has?been?the?most?profitable?week?yet,?due?largely?to?the?profit?attained? through? the? Novell? stock? I? purchased.? ? I? have? learned? to? take? advantage? of? momentary?dips?in?stock?prices,?as?they?are?easy?to?profit?on.??? ? ?
?
40?
4.3.5?Summary? ? Swing?trading?was?difficult,?though?it?required?less?constant?attention?to?the?
market’s?movement?than?other?strategies,?such?as?day?trading.??My?most?profitable? swing? trading? investments? involved? research? into? current? events? and? announcements? regarding? companies? I? was? investing? in.? ? Knowing? generally? how? investors? would? react? to? different? events? helped? me? anticipate? movement? in? the? market.??? ? One?of?my?more?successful?investments?was?with?Google.??I?had?a?fairly?good?
history? investing? in? Google,? and? I? was? confident? that? the? announcement? of? their? proposed? operating? system? would? instill? confidence? in? investors.? ? I? purchased? approximately? $40,000? of? Google? stocks? on? July? 7thas? the? announcement? surfaced,? and? watched? the? price? jump? up? $4.? ? I? sold? the? stock? at? the? height? of? the? hype? for? Google’s?new?operating?system,?and?made?over?$1000.??? ? I?found?that?the?key?to?success?in?swing?trading?is?to?research?the?companies?
you’re? going? to? be? investing? in.? ? Having? a? base? of? knowledge? about? the? company,? along?with?a?reliable?source?of?news?regarding?that?company?is?extremely?important? when? monitoring? swing?trading? investments.? ? Swing? trading? is? slightly? more? challenging,?and?more?involved?than?day?trading,?though?it?can?be?less?risky.??Swing? trading? is? a? good? strategy? for? personal? investors? who? don’t? want? to? have? to? constantly? monitor? small? changes? in? the? market,? nor? take? large? financial? risks? in? huge?investments.??? ? ? 41?
4.4?Simulation?2:?Day?Trading? 4.4.1?Week?1:?June?17?–?June?26,?2009? ? For? the? day? trading? aspect? of? my? simulation,? I? relied? on? Google? Finance? to?
track?changes?in?the?stock?market?and?show?stocks?that?have?changed?significantly? during?that?day.??The?site?features?a?list?of?stocks?ordered?by?the?highest?percentage? fluctuation.? ? I? used? this? to? find? stocks? whose? values? were? accelerating? rapidly? that? day.??I?paid?little?attention?to?the?companies?I?was?investing?in,?focusing?on?nothing? other? than? the? stock? value’s? movement.? ? My? strategy? was? strictly? focused? on? numbers.? The?first?investment?I?made?was?in?CommScope?Inc?(NYSE:CTV)?on?Tuesday,? June?23rd.??I?bought?300?shares?at?$23.81?because?of?CTV’s?rapid?price?acceleration.??I? sold?the?300?shares?approximately?1?hour?later?when?I?saw?the?price?start?to?level?off? for?$24.00?a?share,?making?a?net?profit?of?$212.00.??The?second?investment?I?made? was?in?CSX?Corporation?(NYSE:CSX),?also?on?Tuesday.??I?bought?100?shares?at?$32.00? and?sold?them?about?an?hour?later?because?I?saw?CSX’s?acceleration.??I?sold?all?100? shares?at?$32.25?for?a?net?profit?of?$5.00.???
Table?12:?CTV,?CSX?Transactions?(June?23,?2009)?
Net Date 06/23/09 06/23/09 06/23/09 06/23/09 Symbol CTV CSX CTV CSX buy/sell buy buy sell sell Price $23.81 $32.00 $24.00 $32.25 Shares 300 100 300 100 Cost/Proceeds $7,153.00 $3,210.00 $7,190.00 $3,215.00 37.00 5.00 Profit/Loss Total Cash 38,710.50 35,500.50 42,690.50 45,905.50 212.00 180.00 Total Profit
?
42?
? That? same? day,? June? 23rd,? I? bought? and? sold? Ford? Motor? Company? (NYSE:F)? stock? very? aggressively.? ? I? chose? to? invest? in? Ford? because? of? its? low? cost,? and? somewhat? regular? price? fluctuation.? ? My? first? investment? was? a? purchase? of? 1000? shares? at? $5.49.? ? I? quickly? realized? that? this? would? not? yield? a? sizeable? return,? so? I? bought?4000?more?shares?at?the?same?price,?bringing?my?investment?to?5000?shares? totaling? $27,470? (including? trading? fees).? ? I? closely? monitored? the? stock? price? and? sold? my? 5000? shares? a? few? minutes? later? when? the? price? rose? to? $5.53.? ? This? transaction?yielded?a?net?profit?of?$170.??A?few?minutes?later,?when?the?price?took?a? small?dip,?I?bought?8000?more?shares?at?$5.52?per?share.??I?sold?them?minutes?later? at?$5.59,?yielding?a?net?profit?of?$540.00.??These?investments?showed?me?the?value?of? somewhat? regular? price? fluctuation? in? profitable? day? trading.? ? These? two? investments? also? showed? me? that? the? dollar? amount? fluctuation? wasn’t? nearly? as? important?as?the?percent?fluctuation?in?determining?a?stock’s?profitability.???
Table?13:?F?Transactions?(June?23,?2009)?
Net Date 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 Symbol F F F F F buy/sell buy buy sell buy sell Price $5.49 $5.49 $5.53 $5.52 $5.59 Shares 1000 4000 5000 8000 8000 Cost/Proceeds $5,500.00 $21,970.00 $27,640.00 $44,170.00 $44,710.00 540.00 170.00 Profit/Loss Total Cash 42,758.50 20,788.50 48,428.50 4,258.50 48,968.50 870.00 330.00 Total Profit
?
43?
?
?
Figure?24:?Ford?Motor?Co.?(NYSE:F)?Price?Chart?(June?17??June?27,?2009)?
?
On? Thursday? the? 25th? I? bought? Red? Hat? Inc.? (NYSE:RHT)? stock? and? Teck?
Resources?Limited?(NYSE:?TCK)?stock?because?of?their?movement?that?day.??I?bought? 2000? shares? of? Red? Hat? and? 1000? shares? of? TCK? totaling? nearly? $37,000.00? and? a? little? over? $15,000.00? respectively.? ? I? sold? these? stocks? a? few? hours? later? as? their? prices?peaked?for?a?total?profit?of?$760.?
Table?14:?RHT,?TCK?Transactions?(June?25,?2009)?
Net Date 06/25/09 06/25/09 06/25/09 06/25/09 Symbol RHT TCK RHT TCK buy/sell buy buy sell sell Price $18.47 $15.46 $18.81 $15.58 Shares 2000 1000 2000 1000 Cost/Proceeds $36,950.00 $15,470.00 $37,610.00 $15,570.00 660.00 100.00 Profit/Loss Total Cash 61,712.20 46,242.20 83,852.20 99,422.20 1,658.20 1,758.20 Total Profit
?
?
44?
On? Friday? the? 26th,? I? watched? the? price? of? Google? stock? rise? dramatically.? ? I? bought?100?shares?at?$415.67?and?sold?it?several?hours?later?for?$422.02?for?a?gain?of? $615.00.? ? I? also? bought? Yahoo? stock? hoping? that? the? price? would? continue? to? rise.?? The?price?of?Yahoo?stock?leveled?out?after?I?bought?it,?however?I?managed?to?make?a? meager?profit?of?$40.00.??I?also?bought?1000?shares?of?Microsoft?stock.??Despite?my? expectations? that? it? would? rise,? the? price? of? Microsoft? stock? hovered? around? the? same? price,? with? a? slight? downward? trend.? ? I? cut? my? losses? at? $150.00,? selling? all? 1000?shares.?
Table?15:?GOOG,?YHOO,?MSFT?Transactions?(June?26,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/26/09
GOOG
buy
$415.67
100
$41,577.00
60,202.20
06/26/09
YHOO
buy
$15.62
1000
$15,630.00
44,572.20
06/26/09
MSFT
buy
$23.55
1000
$23,560.00
21,012.20
06/26/09
MSFT
sell
$23.42
1000
$23,410.00
(150.00)
44,422.20
1,592.20
06/26/09
GOOG
sell
$422.02
100
$42,192.00
615.00
86,614.20
2,207.20
06/26/09
YHOO
sell
$15.68
1000
$15,670.00
40.00
102,284.20
2,247.20
? ? ?
?
45?
4.4.2?Week?2:?June?29?–?July?3,?2009? ? The?overall?trend?of?the?market?this?week?was?down,?so?it?was?more?
important?that?I?made?good?day?trading?decisions.??The?meager?prospects?for?swing? trading?this?week?forced?me?to?find?the?few?stocks?doing?relatively?well,?and?utilize? their?gains?to?make?a?profit.??? I?bought?7500?shares?of?Rockwell?Medical?Technologies?Inc.?(NASDAQ:RMTI)? stock? Monday,? June? 29th? for? $7.40,? after? its? price? fell? dramatically? in? overnight? trading.??I?saw?the?price?trend?rebounding,?and?I?thought?I’d?take?my?chances.??I?sold? it? later? in? the? day,? after? realizing? that? the? rebound? wasn’t? as? dramatic? as? I? anticipated.??I?sold?the?stock?for?$7.42?per?share,?making?a?net?profit?of?$130.00.?
Table?16:?RMTI?Transactions?(June?29,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/29/09
RMTI
buy
$7.40
7500
$55,510.00
2,154.20
06/29/09
RMTI
sell
$7.42
7500
$55,640.00
130.00
102,344.20
2,307.20
?
?
46?
?
Figure?25:?Rockwell?Medical?Technologies?(NASDAQ:RMTI)?Price?Chart?(June?23??July?3,?2009)?
There? weren’t? many? good? options? for? day? trading? this? week.? ? Only? a? few? sparse?stocks?were?profitable,?and?finding?them?was?difficult.??I?bought?100?shares?of? Google? stock? Thursday,? July? 1stfor? $421.50,? hoping? to? profit? off? the? normal? oscillation?of?its?price.??I?sold?about?25?minutes?later?at?$425.02,?as?my?confidence?in? it?going?much?higher?was?very?slim.??My?conservative?decisions?paid?off,?making?me? a?net?profit?of?$332.00?as?the?price?of?Google?tumbled.???
Table?17:?GOOG?Transactions?(July?1,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/01/09
GOOG
buy
$421.50
100
$42,160.00
60,184.20
07/01/09
GOOG
sell
$425.02
100
$42,492.00
332.00
102,676.20
2,639.20
? This? week? has? shown? me? that? day? trading? is? one? of? the? only? options? in? a? downward?trending?market,?and?that?finding?a?profitable?stock?is?difficult.??I?forced? ?
47?
myself? to? back? out? of? any? investment? that? lost? me? more? than? $100? or? gained? me? more?than?$200,?as?I?had?little?room?for?experimentation.??I?found?stocks?that?were? significantly?lower?than?usual,?and?anticipated?their?rebounds.??I?was?forced?to?play? it?smart,?and?not?get?too?greedy.??? ? 4.4.3?Week?3:?July?6?–?July?10,?2009? ? I?bought?100?shares?of?Google?and?300?shares?of?Apple?stock?the?morning?of?
Monday,? July? 6th,? after? prices? took? a? momentary? dip.? ? My? investment? in? Google? totaled? $40,391.00? at? $403.81? per? share,? while? my? Apple? investment? totaled? $40,930.00?at?$136.40?per?share.??I?watched?the?price?of?both?stocks?consistently?rise? all?day.??I?noted?a?slight?plateau?tendency?in?the?early?afternoon?and?sold?all?of?my? shares?in?both?companies.??I?sold?my?Apple?stock?for?$138.61?per?share,?for?a?yield?of? $643.00.? ? I? sold? my? Google? stock? for? $409.61? per? share,? for? a? yield? of? $560.00.? ? In? total?I?made?$1,203.00?Tuesday.? ? ? ? ?
?
48?
Table?18:?GOOG,?AAPL?Transactions?(July?6,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/06/09
GOOG
buy
$403.81
100
$40,391.00
61,932.70
07/06/09
AAPL
buy
$136.40
300
$40,930.00
21,002.70
07/06/09
AAPL
sell
$138.61
300
$41,573.00
643.00
62,575.70
2,929.70
07/06/09
GOOG
sell
$409.61
100
$40,951.00
560.00
103,526.70
3,489.70
?
?
Figure?26:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?30??July?10,?2009)?
?
After? Tuesday’s? jump,? the? market? fell? fairly? consistently? until? about? noon?
Thursday,? July? 9th.? ? I? bought? 20,000? shares? of? Novell? stock? early? afternoon? on? Friday.??I?had?noticed?that?towards?the?end?of?the?day?on?Fridays,?the?market?tends? to? take? a? little? skip? upwards? as? many? investors? do? not? like? to? keep? stocks? over? a? weekend.?Anticipating?the?usual?late?Friday?rally,?I?invested?$84,210.00?at?$4.21?per?
?
49?
share.??My?prediction?of?a?late?Friday?rally?was?correct,?and?I?sold?my?Novell?stock? right?before?closing?Friday?for?$4.26?per?share,?earning?me?a?profit?of?$980.00.?
Table?19:?NOVL?Transactions?(July?10,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/10/09
NOVL
buy
$4.21
20000
$84,210.00
20,262.70
07/10/09
NOVL
sell
$4.26
20000
$85,190.00
980.00
105,452.70
5,415.70
?
?
Figure?27:?Novell?Inc.?(NASDAQ:NOVL)?Price?Chart?(June?30??July?10,?2009)?
? 4.4.4?Week?4:?July?13?–?July?20,?2009? ? I?began?buying?this?week?on?Tuesday,?July14thwith?300?shares?of?Apple?and?
3000? shares? of? Oracle(NASDAQ:ORCL).? ? I? invested? the? $42,490.00? in? Apple? at? $141.60?per?share,?while?my?Oracle?investment?totaled?$61,540?at?$20.51?per?share.??
?
50?
I? watched? the? market? rise? Tuesday,? and? noticed? a? slight? peaking? tendency? in? the? prices?of?both?Apple?and?Oracle?toward?the?end?of?the?day.???I?was?unsure?as?to?how? consistent?the?market’s?rise?would?be?so?I?decided?to?sell?both?my?Apple?and?Oracle? stocks.???
? Table?20:?ORCL,?AAPL?Transactions?(July?14,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/14/09
ORCL
buy
$20.51
3000
$61,540.00
43,912.70
07/14/09
AAPL
buy
$141.60
300
$42,490.00
1,422.70
07/14/09
ORCL
sell
$20.58
3000
$61,730.00
190.00
63,152.70
5,605.70
07/14/09
AAPL
sell
$142.19
300
$42,647.00
157.00
105,799.70
5,762.70
? ? On? Thursday,? July? 16thI? bought? Intel? and? Google? stock? in? hopes? that? the?
upward?market?trend?would?continue.??Unfortunately,?the?value?of?Intel?and?Google? stocks?declined?and?I?was?forced?to?settle?with?a?combined?loss?of?$416.00.??Buying? at? a? poor? time? caused? my? loss.? ? I? bought? both? stocks? while? their? price? was? at? a? plateau,?a?strategy?that?has?seldom?worked?for?me?in?the?past.??I?should?have?waited? until?their?values?declined?steadily?and?were?beginning?to?rise.??? ?
?
51?
Table?21:?INTC,?GOOG?Transactions?(July?16,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/16/09
INTC
buy
$18.14
2000
$36,290.00
28,280.70
07/16/09
GOOG
buy
$438.63
100
$43,873.00
28,359.70
07/16/09
INTC
sell
$18.03
2000
$36,050.00
(240.00)
64,409.70
8,245.70
07/16/09
GOOG
sell
$437.07
100
$43,697.00
(176.00)
108,106.70
8,069.70
?
?
Figure?28:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(July?7??July?17,?2009)?
?
Finally,?I?bought?10000?shares?of?Ford?stock?at?$6.06?per?share?on?Friday,?the?
17th.??This?investment?totaled?$60,610.00.??I?chose?to?make?this?investment?in?Ford? because?the?price?fluctuates?frequently,?and?it?seemed?to?be?on?an?upward?trend.??I? sold?the?stock?later?that?day?for?$6.13?per?share,?bringing?me?a?net?profit?of?$680.00.??
?
52?
With?a?careful,?patient?eye?on?the?price,?I?noticed?an?upward?trend,?and?was?able?to? correctly?anticipate?a?price?jump?for?Ford?stock?and?profit?from?it.???
Table?22:?F?Transactions?(July?17,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/17/09
F
buy
$6.06
10000
$60,610.00
4,525.70
07/17/09
F
sell
$6.13
10000
$61,290.00
680.00
65,815.70
8,749.70
? ? 4.4.5?Summary? ? Overall,?my?day?trading?experience?was?especially?profitable.??High?risk,?high?
cost?investments?were?the?most?profitable.??I?used?a?numbers?only?approach?to?day? trading.? ? I? focused? only? on? significant? fluctuations? in? price,? and? anticipated? future? changes? by? observing? the? overall? trend? of? the? stock? that? day? in? the? context? of? the? stock’s?recent?history.??? ? My? most? successful? day? trading? investments? were? towards? the? afternoon,?
involving? significant? investments? that? relied? on? small? fluctuations? in? price? (sometimes?only?a?few?cents?in?change).??I?began?the?experiment?with?a?tendency?to? hold?on?to?stocks?as?their?price?went?up,?hoping?for?a?huge?profit.??This?did?not?work? as?well?as?I?anticipated,?as?many?stocks?would?rise?briefly,?and?then?fall?lower?than? the?price?I?paid?for?them,?resulting?in?a?loss.??I?abandoned?this?idea?and?began?selling? stocks?as?soon?as?I?could?make?a?sizeable?profit,?usually?anything?over?$200,?or?when? the?price?began?to?show?the?smallest?hint?of?falling?again.??If?the?stock?I?was?investing?
?
53?
in?fell?to?the?point?where?I?would?loose?more?than?$100,?I?sold?it?with?the?intention?of? minimizing? potential? losses.? ? This? more? conservative? method? was? much? more? reliable? and? sustainable,? though? I? did? not? make? the? maximum? possible? profit? from? my?investments.??I?find?that?this?strategy?is?most?applicable?to?personal?investments,? and?causes?minimal?stress?on?the?investor.??? ? Having?a?clear?set?of?rules?and?goals?about?what?and?how?to?invest?was?the?
key?to?my?success?in?day?trading.??Day?trading?involves?many?quick,?often?emotional? decisions.? ? Having? a? clear? set? of? investing? rules? unburdens? the? investor? of? this? emotional? attachment? to? trading? and? helps? maintain? consistent? profitability.?? Despite? its? volatility,? day? trading? can? be? a? very? exciting? and? rewarding? investment? opportunity.? ? ? ? ? ? ? ? ?
?
54?
5.??Conclusion?
? My?investment?simulation?was?successful?both?financially?and?in?exposing?the?
most? important? aspects? of? both? swing? trading? and? day? trading.? ? I? began? this? experiment?with?little?knowledge?of?how?to?successfully?invest?in?the?stock?market,? nor? what? factors? influence? the? market’s? constant? change.? ? I? exceeded? my? financial? goal? of? $4,000,? making? $9,001.70? in? net? profit.? ? Through? a? few? mistakes? and? some? experimentation,?I?was?able?to?define?the?fundamentals?of?successful?investing.??? ? I?found?that?day?trading?was?the?easiest?strategy?for?someone?new?to?trading?
stocks.?? My? day? trading?rules? were?simple,? yet? following?them?yielded? a?consistent? profit.? ? I? discovered? that? successful? day? trading? involves? making? relatively? conservative?decisions,?and?not?being?overly?greedy.??My?worst?investments?in?day? trading?were?the?result?of?my?attempts?at?selling?for?a?maximum?profit.??I?set?a?few? rules?to?help?me?decide?when?to?buy?and?sell?stocks,?and?not?following?them?led?me? to? avoidable? losses.? ? I? sold? stocks? that? either? made? me? more? than? $200? or? lost? me? more?than?$100,?and?looked?only?at?the?price?change,?and?the?potential?for?growth? that?day.??When?I?followed?these?simple?rules,?I?was?consistently?profitable.? ? Swing?trading?was?less?profitable?during?my?4?week?simulation,?however?it?is?
a? viable? opportunity? for? personal? investors.? ? Researching? the? companies? I? was? investing? in? helped? tremendously? in? anticipating? the? future? value? of? stocks.?? Knowing? what? causes? other? investors? to? buy? or? sell? a? stock,? and? anticipating? their? actions? is? also? pivotal? to? success? in? swing? trading.? ? When? I? was? able? to? anticipate?
?
55?
events? that? caused? the? value? of? the? stock? to? fluctuate? significantly,? I? was? able? to? make?a?profitable?investment.??? ? I?have?found?that?the?stock?market?can?be?very?lucrative.??By?following?a?clear?
set?of?rules,?an?investor?can?produce?a?consistent?gain?through?day?trading.??A?basic? understanding? of? the? psyche? of? investors,? along? with? diligent? research? can? make? swing? trading? an? effective? investing? strategy.? ? Through? my? research? and? experimentation,?I?have?gained?a?more?profound?understanding?of?the?stock?market,? investor? psyche,? and? the? foundation? of? the? US? financial? system.? ? I? hope? to? employ? what? I’ve? learned? through? this? simulation? in? my? own? stock? investments? in? the? future.??? ? ? ? ? ? ? ? ? ?
?
56?
References?
1. "Stock Market." The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. 07 Jun. 2009. <Dictionary.com http://dictionary.classic.reference.com/browse/Stock Market>. 2. NYSE Group Shares Outstanding and Market Capitalization of Companies Listed, 2009. June 7, 2009. <http://www.nyxdata.com/nysedata/default.aspx?tabid=115> 3. Full Description: Apple Inc. (Nasdaq). June 7, 2009 <http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=A APL.O> 4. iPod Sales, Quarterly and Total. June 7, 2009 <http://www.systemshootouts.org/ipod_sales.html> 5. Nintendo’s Wii takes console lead, June 7, 2009 <http://www.ft.com/cms/s/0/51df0c84-6154-11dc-bf250000779fd2ac.html?nclick_check=1>
6. Operating System Market Share. June 7, 2009 <http://marketshare.hitslink.com/operating-system-marketshare.aspx?qprid=8> 7. Missile maker hopes to diversify, create technology for Peacetime. June 7, 2009. <http://www.sazhightechconnect.com/headlines/index.cfm?action=view& articleID=265>
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8. 100 Best Companies to Work For 2007. June 7, 2009 <http://money.cnn.com/magazines/fortune/bestcompanies/2007/full_list/ > 9. Google.com Corporate Information. June 7, 2009 <http://www.google.com/corporate/>
10. Alexa.com Site Info: Yahoo.com. June 7, 2009
<http://www.alexa.com/siteinfo/yahoo.com>?
? ? ? ? ? ? ? ? ? ? ? ?
?
58?
Appendix:?Complete?Transaction?Record?
(Day?trading?transactions?are?highlighted?in?yellow)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/17/09 06/17/09 06/17/09 06/17/09 06/17/09 06/17/09
AAPL MSFT INTC NVDA ERTS RTN
buy buy buy buy buy buy
$135.58 $23.68 $16.14 $11.28 $20.83 $45.31
100 200 400 200 200 350
$13,568.00 $4,746.00 $6,466.00 $2,266.00 $4,176.00 $15,868.50
86,432.00 81,686.00 75,220.00 72,954.00 68,778.00 52,909.50
06/17/09 06/17/09 06/17/09
GOOG YHOO AMD
buy buy buy
$415.16 $15.60 $4.08
75 400 1,000
$31,147.00 $6,250.00 $4,090.00
21,726.50 15,512.50 11,422.50
06/19/09
AAPL
sell
$138.66
100
$13,856.00
288.00
25,278.50
288.00
06/19/09 06/19/09
GOOG RTN
sell sell
$418.28 $46.09
75 350
$31,361.00 $16,121.50
214.00 253.00
56,639.50 72,761.00
502.00 755.00
06/22/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09
GOOG AMD CTV CSX CTV CSX MSFT F F F F
buy sell buy buy sell sell sell buy buy sell buy
$405.30 $3.52 $23.81 $32.00 $24.00 $32.25 $23.63 $5.49 $5.49 $5.53 $5.52
75 1000 300 100 300 100 100 1000 4000 5000 8000
$30,407.50 $3,510.00 $7,153.00 $3,210.00 $7,190.00 $3,215.00 $2,353.00 $5,500.00 $21,970.00 $27,640.00 $44,170.00 170.00 37.00 5.00 (20.00) (580.00)
42,353.50 45,863.50 38,710.50 35,500.50 42,690.50 45,905.50 48,258.50 42,758.50 20,788.50 48,428.50 4,258.50 330.00 212.00 180.00 160.00 175.00
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06/23/09 06/23/09
F ERTS
sell sell
$5.59 $20.44
8000 200
$44,710.00 $4,078.00
540.00 (98.00)
48,968.50 53,046.50
870.00 772.00
06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09
GOOG INTC AM MGM MGM AM YHOO NVDA HLIT HLIT
sell sell buy buy sell sell sell sell buy sell
$410.30 $16.19 $8.94 $6.71 $6.69 $9.14 $15.28 $10.93 $5.59 $5.60
75 400 1000 1000 1000 1000 400 200 10000 10000
$30,762.50 $6,466.00 $8,950.00 $6,720.00 $6,680.00 $9,130.00 $6,102.00 $2,176.00 $55,910.00 $55,990.00
355.00 0.00
83,809.00 90,275.00 81,325.00 74,605.00
1,127.00 1,127.00
(40.00) 180.00 (148.00) (90.00)
81,285.00 90,415.00 96,517.00 98,693.00 42,783.00
1,087.00 1,267.00 1,119.00 1,029.00
80.00
98,773.00
1,109.00
06/24/09
GOOG
buy
$409.00
200
$81,810.00
16,963.00
06/24/09
GOOG
buy
$407.67
40
$16,316.80
646.20
06/24/09
GOOG
sell
$408.05
40
$16,312.00
(4.80)
16,958.20
1,104.20
06/24/09 06/25/09 06/25/09 06/25/09 06/25/09
GOOG RHT TCK RHT TCK
sell buy buy sell sell
$408.57 $18.47 $15.46 $18.81 $15.58
200 2000 1000 2000 1000
$81,704.00 $36,950.00 $15,470.00 $37,610.00 $15,570.00
(106.00)
98,662.20 61,712.20 46,242.20
998.20
660.00 100.00
83,852.20 99,422.20
1,658.20 1,758.20
06/25/09
MSFT
sell
$23.67
100
$2,357.00
(16.00)
101,779.20
1,742.20
06/26/09 06/26/09 06/26/09 06/26/09
GOOG YHOO MSFT MSFT
buy buy buy sell
$415.67 $15.62 $23.55 $23.42
100 1000 1000 1000
$41,577.00 $15,630.00 $23,560.00 $23,410.00 (150.00)
60,202.20 44,572.20 21,012.20 44,422.20 1,592.20
06/26/09
GOOG
sell
$422.02
100
$42,192.00
615.00
86,614.20
2,207.20
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06/26/09 06/26/09 06/29/09 06/29/09
YHOO RTN RMTI RTN
sell buy buy sell
$15.68 $44.61 $7.40 $44.56
1000 1000 7500 1000
$15,670.00 $44,620.00 $55,510.00 $44,550.00
40.00
102,284.20 57,664.20 2,154.20
2,247.20
(70.00)
46,704.20
2,177.20
06/29/09
RMTI
sell
$7.42
7500
$55,640.00
130.00
102,344.20
2,307.20
07/01/09
GOOG
buy
$421.50
100
$42,160.00
60,184.20
07/01/09
GOOG
sell
$425.02
100
$42,492.00
332.00
102,676.20
2,639.20
07/02/09
GOOG
buy
$409.66
50
$20,493.00
82,183.20
07/02/09 07/02/09
AAPL RTN
buy buy
$140.35 $43.28
300 500
$42,115.00 $21,650.00
40,068.20 18,418.20
07/03/09 07/03/09
GOOG RTN
sell sell
$408.49 $43.01
50 500
$20,414.50 $21,495.00
(78.50) (155.00)
38,832.70 60,327.70
2,560.70 2,405.70
07/03/09
AAPL
sell
$140.02
300
$41,996.00
(119.00)
102,323.70
2,286.70
07/06/09
GOOG
buy
$403.81
100
$40,391.00
61,932.70
07/06/09
AAPL
buy
$136.40
300
$40,930.00
21,002.70
07/06/09
AAPL
sell
$138.61
300
$41,573.00
643.00
62,575.70
2,929.70
07/06/09
GOOG
sell
$409.61
100
$40,951.00
560.00
103,526.70
3,489.70
07/07/09
AAPL
buy
$136.99
300
$41,107.00
62,419.70
07/07/09 07/07/09
GOOG MSFT
buy buy
$401.65 $22.82
100 950
$40,175.00 $21,689.00
22,244.70 555.70
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07/09/09
MSFT
sell
$22.54
950
$21,403.00
(286.00)
21,958.70
3,203.70
07/09/09
AAPL
sell
$137.14
300
$41,132.00
25.00
63,090.70
3,228.70
07/09/09 07/10/09
GOOG NOVL
sell buy
$413.92 $4.21
100 20000
$41,382.00 $84,210.00
1,207.00
104,472.70 20,262.70
4,435.70
07/10/09 07/14/09
NOVL ORCL
sell buy
$4.26 $20.51
20000 3000
$85,190.00 $61,540.00
980.00
105,452.70 43,912.70
5,415.70
07/14/09 07/14/09
AAPL ORCL
buy sell
$141.60 $20.58
300 3000
$42,490.00 $61,730.00 190.00
1,422.70 63,152.70 5,605.70
07/14/09
AAPL
sell
$142.19
300
$42,647.00
157.00
105,799.70
5,762.70
07/15/09 07/15/09 07/16/09 07/16/09
AAPL NOVL NOVL INTC
buy buy sell buy
$145.13 $4.37 $4.55 $18.14
300 13000 13000 2000
$43,549.00 $56,820.00 $59,140.00 $36,290.00 2,320.00
62,250.70 5,430.70 64,570.70 28,280.70 8,082.70
07/16/09
AAPL
sell
$146.54
300
$43,952.00
403.00
72,232.70
8,485.70
07/16/09 07/16/09
GOOG INTC
buy sell
$438.63 $18.03
100 2000
$43,873.00 $36,050.00 (240.00)
28,359.70 64,409.70 8,245.70
07/16/09
GOOG
sell
$437.07
100
$43,697.00
(176.00)
108,106.70
8,069.70
07/17/09 07/17/09 07/17/09
GOOG F F
buy buy sell
$429.61 $6.06 $6.13
100 10000 10000
$42,971.00 $60,610.00 $61,290.00 680.00
65,135.70 4,525.70 65,815.70 8,749.70
07/20/09
GOOG
sell
$431.96
100
$43,186.00
215.00
109,001.70
8,964.70
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doc_651902705.pdf
In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio.
Project?Number:?0903? ? ? ? ?
Analysis?of?Stock?Market?Investment?Strategies?
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An?Interactive?Qualifying?Project?Report?Submitted?to?the?? Faculty?of? WORCESTER?POLYTECHNIC?INSTITUTE? in?partial?fulfillment?of?the?requirements?for?the? Degree?of?Bachelor?of?Science? by?
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Graham?Pentheny? ? ? Computer?Science? Interactive?Media?and?Game?Development?
? August?2009? ? Approved?by?Professor?Dalin?Tang,?Project?Advisor? ? ______________________________________? ?
Table?of?Contents? ?
I.?Acknowledgements………………………………………………………………………………………4? II.?Abstract………………………………………………………………………………………………………5? III.?List?of?Figures.……………………………………………………………………………………………6? IV.?List?of?Tables……………………………………………………………………………………………...8? 1.??Introduction……………………………………………………………………………………………..10? 1.1?Goals………………………………………………………………………………………………….10? 1.2?History?of?the?Stock?Market………………………………………………………………...10? 1.3?Pros?and?Cons?of?Financial?Investment………………………………………………..11? 2.??Financial?Investment?Opportunities…………………………………………………………13? ? ? ? ? 2.1?Stocks………………………………………………………………………………………………..13? 2.2?Bonds………………………………………………………………………………………………..14? 2.3?Certificates?of?Deposit………………………………………………………………………..15? 2.4?Mutual?Funds…………………………………………………………………………………….16?
3.??Stock?Market?Trading?Strategies……………………………………………………………….17? ? ? 3.1Day?Trading…………………………………………………………………………….………….17? 3.2?Swing?Trading……………………………………………………………………………………18?
4.??Simulated?Investments?and?Their?Results………………………………………………...19? ? ? ? ? ? ? ? ? 4.1?Goals?and?Strategies…………………………………………………………………………...19? 4.2?Company?Profiles…………………………………………………………………………….…19? ? ? ? ? ? ? 4.2.1?Apple?Inc.?…………………………………………………………………………….19? 4.2.2?Microsoft?Corp.?…………………………………………………………………….20? 4.2.3?Raytheon?Company……………………………………………………………….22? 4.2.4?Google?Inc.?…………………………………………………………………………...23? 4.2.5?Electronic?Arts?Inc.?……………………………………………………………….24? 4.2.6?NVIDIA?Corp.?……………………………………………………………………….25?
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4.2.7?Intel?Corp.?……………………………………………………………………………26? 4.2.8?Advanced?Micro?Devices,?Inc.?………………………………………………..27? 4.2.9?Yahoo!?Inc.?…………………………………………………………………………...28?
4.3?Simulation?1:?Swing?Trading……………………………………………………………….29? ? 4.3.1?Week?1…………………………………………………………………………………29? 4.3.2?Week?2…………………………………………………………………………………35? 4.3.3?Week?3…………………………………………………………………………………37? 4.3.4?Week?4…………………………………………………………………………………39? 4.3.5?Summary……………………………………………………………………………...41?
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4.4?Simulation?2:?Day?Trading…………………………………………………………………..42? 4.4.1?Week?1…………………………………………………………………………………42? 4.4.2?Week?2…………………………………………………………………………………45? 4.4.3?Week?3………………………………………………………………………………....48? 4.4.4?Week?4…………………………………………………………………………………50? 4.4.5Summary……………………………………………………………………………....53?
5.??Conclusion………………………………………………………………………………………………..55? References…………………………………………………………………………………………………….57? Appendix:?Complete?Transaction?Record……………………………………………….........59? ? ? ? ? ? ? ? ? ?
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I.?Acknowledgements?
? ? I?would?like?to?thank?Dr.?Dalin?Tang,?Professor?of?Mathematical?Sciences?and?
Biomedical? Engineering,? Worcester? Polytechnic? Institute,? for? his? advisement? over? this?project.??I?would?also?like?to?thank?my?friends?and?family?for?their?support.? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
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II.?Abstract?
? This?investigation?focused?on?what?makes?an?investor?profitable?in?the?stock?
market.? ? A3?week? investment? simulation? was? conducted,? utilizing? day? trading? and? swing?trading?strategies.??The?factors?that?attributed?to?the?success?of?the?simulation? were? analyzed,? and? used? to? increase? investing? power? and? ability.? ? The? knowledge? gained? through? this? experiment? will? be? used? to? make? intelligent? and? informed? investment?decisions?in?the?future.? ? ? ? ? ? ? ? ? ? ? ?
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III.??List?of?Figures?
Figure?1:?Apple?Inc.?(NASDAQ:AAPL)?Year?To?Date?Price?Chart…………………………....20? Figure?2:?Microsoft?Corp.?(NASDAQ:MSFT)?Year?To?Date?Price?Chart…………………...21? Figure?3:?Raytheon?Company?(NYSE:RTN)?Year?To?Date?Price?Chart……………………22? Figure?4:?Google?Inc.?(NASDAQ:GOOG)?Year?To?Date?Price?Chart………………………….24? Figure?5:?Electronic?Arts?Inc?(NASDAQ:ERTS)?Year?To?Date?Price?Chart……………….25? Figure?6:?NVIDIA?Corp.?(NASDAQ:NVDA)?Year?To?Date?Price?Chart……………………...26? Figure?7:?Intel?Corp.?(NASDAQ:INTC)?Year?To?Date?Price?Chart……………………………27? Figure?8:?Advanced?Micro?Devices,?Inc.?(NYSE:AMD)?Year?To?Date?Price?Chart…….28? Figure?9:?Yahoo!?Inc.?(NASDAQ:YHOO)?Year?To?Date?Price?Chart…………………………29? Figure?10:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?9th???June?19th,?2009)…....30? Figure?11:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?9th???June?19th,?2009)….32? Figure?12:?Ratheyon?Corp.?(NYSE:RTN)?Price?Chart?(June?9th???June?19th,?2009)…..33? Figure?13:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?30th???July?10th,?2009)…38? Figure?14:?Ford?Motor?Co.?(NYSE:F)?Price?Chart?(June?17th???June?27th?2009)………44? Figure?15:?Rockwell?Medical?Technologies?(NASDAQ:RMTI)?Price?Chart?? ? (June?23rd?–?July?3rd,?2009)………………………..…………………………………………...46?
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Figure?16:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?30th???July?10th,?2009)…...49? Figure?17:?Novell?Inc.?(NASDAQ:NOVL)?Price?Chart?(June?30th???July?10th,?2009)….50? Figure?18:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(July?7th???July?17th,?2009)……52? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
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IV.?List?of?Tables?
Table?1:?AAPL?Transactions?(June?17?–?June?26,?2009)…………………………...………….…30? Table?2:?MSFT?Transactions??(June?17?–?June?26,?2009)………………………………………..31? Table?3:?GOOG?Transactions?(June?17???June?24,?2009)…………………………………………32? Table?4:?INTC,?NVDA,?ERTS,?YHOO,?AMD?Transactions?(June?17th?–?? ? June?26th,2009)……………………………………………………………………………………...34?
Table?5:?GOOG?Transactions?(June?24???June?26,2009)………………………………………….35? Table?6:?RTN,?GOOG,?AAPL?Transactions?(June?29th???July?3rd,?2009)…………………...36? Table?7:?AAPL,?GOOG,?MSFT?Transactions?(July?7th,?2009)…………………………………..37? Table?8:?AAPL,?GOOG,?MSFT?Transactions?(July?9th,?2009)…………………………………..38? Table?9:?AAPL,?NOVL?Transactions?(July?15th,?2009)……………………………………….......39? Table?10:?NOVL,?AAPL?Transactions?(July?16th,?2009)…………………………………………40? Table?11:?GOOG?Transactions?(July?17th,?2009)…………………………………………………...40? Table?12:?CTV,?CSX?Transactions?(June?23rd,?2009)……………………………………………..42? Table?13:?F?Transactions?(June?23rd,?2009)…………………………………………………………43? Table?14:?RHT,?TCK?Transactions?(June?25th,?2009)…………………………………………….44? Table?15:?GOOG,?YHOO,?MSFT?Transactions?(June?26th,?2009)……………………………..45?
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Table?16:?RMTI?Transactions?(June?29th,?2009)…………………………………………………..46? Table?17:?GOOG?Transactions?(July?1st,?2009)……………………………………………………..47? Table?18:?GOOG,?AAPL?Transactions?(July?6th,?2009)…………………………………………...48? Table?19:?NOVL?Transactions?(July?10th,?2009)…………………………………………………….49? Table?20:?ORCL,?AAPL?Transactions?(July?14th,?2009)………………………………………….51? Table?21:?INTC,?GOOG?Transactions?(July?16th,?2009)………………………………………….51? Table?22:?F?Transactions?(July?17th,?2009)………………………………………………………….52? ? ? ? ? ? ? ? ? ? ?
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1.?Introduction?
1.1Goals? The main goals of this project were to investigate possible investment opportunities, logically weigh their respective risks and benefits, and make educated investment decisions. A detailed understanding of the risks and opportunities for high return presented in each investment opportunity were obtained through extensive research and analysis. This knowledge will aid in the future selection and execution of intelligent investments. A 3-week, $100,000 simulated stock market investment was made. This
simulated investment tested the strategies researched, and helped in the understanding of the stock market in general. This experience facilitated the identification and anticipation of market trends, and thusly influenced future investment decisions.
1.2History?of?the?Stock?Market? ? A stock market is “a place where stocks, bonds, or other securities are bought and
sold [1].” A share of stock, informally referred to as “stock,” is a share in the ownership of a corporation. Stocks entitle the owner to voting rights in major company decisions. Stocks can be bought and sold at a price determined by the financial success of the corporation and the overall demand for the corporation’s stock. A bond is essentially a loan from the investor to an individual or organization, often the government, which promises to repay the debt with interest at a later date.
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The New York Stock Exchange (NYSE) was the first stock market to be
established in the United States, tracing its roots back to 1792. The NYSE is also the largest stock exchange in the world in terms of capital invested. The combined
capitalization of all companies listed in the NYSE as of May 2009 is $10.4 trillion [2]. Over 419 billion stocks are traded each year, at an average price of $24.87 per share [2]. The financial well being of the United States is often judged by the performance of stocks in the New York Stock Exchange. A stock market crash is a sudden decline in the average price of stock. Panicked investors withdrawing their money, as well as underlying economic instability drive stock market crashes. The great 1929 crash of the NYSE was a primary cause of the Great Depression, the worst economic crisis the United States has ever seen. More recently, the NYSE crash of 2008 was caused primarily by securities on defaulted loansgiven to under-qualified individuals. Many large banks and loan-issuing organizations collapsed because of these defaulted, “sub-prime” loans. The crash of the NYSE affected the economies of many other countries as well, leading to the world financial crisis of 2008. ? 1.3Pros?and?Cons?of?Financial?Investment? ? Investing money into unpredictable, unstable, and uncontrollable facets can be
extremely risky. Like the lottery, the success of stock market trading is partly attributed to luck. Many people have lost vast amounts of money through poor investment
decisions that they’ve made. Recently, investors with shares in loan-giving companies and American car manufacturers, which were previously a fairly stable investment, have
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suffered severe losses due to the economic crisis. Investors must understand and accept this risk as an intrinsic part of investing. There are, however, attractive benefits to successful financial investments. With intelligent decisions, investing can yield significant capital gains, stability, and security. By analyzing the trends of the stock market, the companies one is invested in, and by followingan investment strategy, one can be successful in the stock market. There has been much research into various ways of analyzing the stock market as a means of facilitating intelligent investment decisions. These “intelligent decisions” are paramount to the success of an investment, and will be examined in this experiment. ?
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2.??Financial?Investment?Opportunities?
2.1?Shares?of?Stock? The most well-known investment opportunity is shares of stock in a company. The general public is not allowed to trade stock in the New York Stock Exchange; instead the public trades through stockbrokers. Stockbrokers will buy or sell stock on behalf of an individual for a commission, and often distinguish themselves by the investment advice they give their customers. The popularity of the Internet has facilitated websites offering a means for customers to trade stock for a minimal fee (usually around $10 per trade). The Internet has also broadened the trading power of the stock exchange, allowing for millions of shares to be bought and sold each day. Investment in stocks can be risky. The return on investment (ROI) of stock can be hard to predict, as the price of stock is determined by the financial success of the company, the demand for that company’s stock by investors, and the overall confidence investors have in the market at a given moment. Investment in the stock market depends as much upon factual, logical decisions as well as “gut-feeling” emotional ones. For this reason, there are many stock market investment strategies that help investors make tough decisions. Investors may choose to have their stock “portfolio” (the investor’s collection of stocks) managed by their stockbroker, thereby removing the burden and responsibility from the investor. Many stockbrokers advertise a guaranteed yearly return percentage as an incentive to invest money with them. The investor trusts their stockbroker to make successful investment decisions on their behalf, forfeiting a portion of the return as commission.
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Because of its relative unpredictability and therefore inherent possibility for huge returns, the stock market is one of the most popular investment decisions among private investors. The stock market’s constant fluctuation empowers investors with a multitude of opportunities for substantial profits. This possibility of high returns and the
unpredictability of the market are enticing to excitable investors, however with wise decision-making, the stock market can be a stable, long-term investment opportunity as well.
2.2?Bonds? Bonds are a loan, granted by the investor (“the holder”), to a corporation or individual (“the issuer”, usually the government). The loan agreement includes a
specified amount of time, after which the bond is said to “mature.” A specified amount of interest is aggregated semi-annuallyduring the time before the bond matures, after which no further interest is accrued. Once the bond has matured, the holder can cash the bond and regain the principle plus accrued interest. The holder usually cannot “cash” the bond before the time it matures without facing a penalty, often resulting in an overall loss for the investor. Due to their guaranteed ROI, bonds are stable assets in an investor’s portfolio. Investors may also choose to invest in “bond funds,” where a third party broker invests in the bonds of many companies. The private investor takes a stake in the principle
investments made by the broker, and receives a portion of the earnings along with their principle. Bond funds can be a more profitable choice for private investors because a
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brokerage can often negotiate the interest of a bond to a higher rate than would be available for a private investor. Because of bonds’ stability, guaranteed ROI, and
because they are unaffected by the stock market,bonds are popular as long-term investments, and during uncertain financial times.
2.3Certificates?of?Deposit? ? Certificates of deposit (informally referred to as “CDs” or “CODs”) are
investments made in banks or credit unions in the form of a long-term savings account. A COD works very much in the same way a bond does. The investor loans a bank a principle amount, on which the bank pays interest. Like a bond, the investor collects the principle and interest when the COD matures. Certificates of deposit have traditionally been a virtually risk-free, guaranteed (they are insured by the FDIC), long-term investment opportunity. CODs are, however, susceptible to interest-rate fluctuations (in variable-interest rate CODs), and inflation. Because many CODs are investments made over many years, the intrinsic value of the principle plus interest may not exceed the value of the principal upon maturation due to inflation and poor interest rates. Despite this, most certificates of deposit are a secure, stable, long-term investment opportunity. ? ? ?
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2.4Mutual?Funds? ? Mutual Funds are an investment in a fund, managed by a fund manager, which is
invested in many different small investments. The fund manager trades these small investments regularly, generating a return for the fund principle. The investors are paid a portion of this return.The value of a mutual fund is determined by it’s net asset value (NAV), or the combined worth of the fund’s holdings (the fund’s investment portfolio). Mutual Funds are usually a medium-risk, medium-return investment. Due to their professional management, mutual funds are an easy opportunity for inexperienced investors. The most common type of mutual fund is an “equity fund” which is comprised entirely of stock investments. Because of their dependence on the stock market, mutual funds are riskier than CODs, however they often lead to greater yield. ? ? ? ? ? ? ? ? ?
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3.??Stock?Market?Trading?Strategies?
3.1?Day?Trading? Day?trading?is?the?strategy?of?buying?and?trading?a?stock?within?the?same?day.?? Day? trading? is? a? very? fast?paced? investment? strategy,? relying? on? quick,? often? emotional,?decisions?from?the?investor.??Day?trading?relies?on?the?daily?fluctuation?of? stock?values.??Investors?hope?to?ideally?buy?stock?at?its?lowest?value?that?day,sell?it? later?that?day?at?its?peak?value,?and?earn?the?difference.??Day?traders?do?not?care?as? much? about?what?company? they?are?buying?stock? in,? only?on?that?stock’s? potential? for?growth?that?day.??There?are?many?subtle?strategies?to?day?trading,?along?with?a? keen?sense?for?stocks?that?are?about?to?gain?value,?that?make?an?investor?successful.??? Because? of? the? rapid? pace? of? day? trading,? it? has? a? notorious? reputation? for? huge?returns,?as?well?as?huge?losses.??Many?single?investors?make?millions?of?dollars? per? year? solely? with? a? day? trading? strategy,? though? this? kind? of? return? requires? an? experienced? investor? willing? to? take? significant? risks.? ? Day? trading? can? be? so? risky? that,? with? a? series? of? poor? decisions,? an? investor? can? loose? their? entire? working? capital?in?one?day.??? With? the? popularity? of? the? Internet,? many? investors? can? make? day? trading? transactions? from? their? homes.? ? These? investors? use? websites? that? offer? trading? services?for?a?small?fee.??This?has?led?to?a?rise?in?personal?investors?employing?a?day? trading?strategy.??Day?trading?was?further?investigated?in?the?investment?simulation.? ? ? ? 17?
3.2?Swing?Trading? ? Swing?Trading?is?the?strategy?of?trading?at?the?peaks?of?price?oscillation?over?
a?period?of?a?few?days?or?weeks.??This?strategy?is?more?involved?than?Day?Trading,? requiring? an? investor? with? a? watchfuleye? and? a? thorough? understanding? of? the? company?they?are?investing?in.??The?investor?must?determine?when?the?best?time?to? sell?and?buy?a?stock?is,?based?on?recent?fluctuation?activity,?news,?and?the?investor’s? intuition.? ? Swing? trading? involves? research? into? different? markets,? and? into? what? makes? investors? excited? about? a? company.? ? In? the? case? of? Apple,? investors? are? excited? by? new? product? releases? and? tech?related? conferences? that? showcase? new? Apple? technologies.? ? Usually? these? events? will? have? a? direct? impact? on? the? price? of? Apple?stock.??An?investor?can?utilize?the?events’?impacts?to?make?a?profit.??A?swing? trader?must?be?able?to?anticipate?the?changes?of?upcoming?and?current?events?to?the? price? of? a? stock,? and? employ? that? information? to? make? educated? purchasing? decisions.??? ? Due?to?the?amount?of?research?involved,?swing?trading?is?usually?a?less?risky?
strategy? than? day? trading.? ? Day? trading? focuses? on? current? growth? and? fluctuation,? whereas?swing?trading?profits?off?underlying?trends?in?a?stocks’?price.??Swing?trading? can? involve? investments? lasting? a? few? days,? weeks? or? even? months.? ? The? flexibility? presented? with? a? swing? trading? simulation? made? it? ideal? for? this? short? investment? simulation.? ?
?
18?
4.??Simulated?Investments?and?Their?Results?
4.1?Goals?and?Strategies? ? The? primary? goal? of? this? simulation? was? to? gain? a? better? understanding? of?
personal? investment? opportunities.? ? The? financial? goal? set? for? this? simulated? $100,000?investment?was?a?return?of?at?least?$4,000?over?the?span?of?3?weeks.??This? required?an?average?total?gain?of?at?least?$200?per?day.??? ? For?this?investment?simulation?a?swing?trading?scheme?was?chosen?because?
of?its?potential?for?gain?within?a?short?time?period.??A?Day?Trading?scheme?was?also? employed?in?order?to?better?understand?the?subtleties?that?make?it?profitable.??Other? trading?strategies?were?out?of?the?financial?scope?and?timeframe?of?this?simulation.??? ? Seven?companies?were?chosen?for?the?swing?trading?simulation.??They?were?
chosen?based?on?a?deep?understanding?of?the?goods?and?services?they?offer,?as?well? as?their?reputation?in?their?respective?domains.??Specific?companies?were?not?chosen? for?the?day?trading?simulation.??Instead?the?focus?was?only?on?the?short?term?growth? of?the?stock’s?value.? ? 4.2?Company?Profiles? 4.2.1?Apple?Inc.?(NASDAQ:AAPL)? ? Apple?Inc.?designs,?manufactures,?and?markets?personal?computers,?portable?
music? players,? and? cell? phones? [3].? ? They? also? sell? a? variety? of? software,? computer? accessories,?and?computer?training?services.??Since?its?inception?in?1977,?Apple?has? ? 19?
been? a? leading? maker? of? consumer? electronics? and? personal? computers.? ? The? company? struggled? in? the? late? 1990’s? with? diminished? sales,? though? with? the? introduction?of?the?iPod?brand?mp3?player?in?2001,?it?was?re?established?as?a?leader? in? the? consumer? electronics? market.? ? Since? its? introduction,? there? have? been? over? 151,000,000? [4]? iPods? sold? worldwide,? dominating? the? mp3? player? market.? ? Apple? computers’? market? share? continues? to? climb,? and? record? sales? are? consistently? recorded? every? quarter.? ? Apple? is? notorious? for? having? very? avid? fans? of? their? products.??Fans?will?often?line?up?outside?an?Apple?store?hours,?or?even?days,?before? it?opens?to?be?the?first?to?purchase?the?latest?Apple?gear.?
?
Figure?1:?Apple?Inc.?(NASDAQ:AAPL)?YearToDate?Price?Chart?
? 4.2.2?Microsoft?Corp.?(NASDAQ:MSFT)? Microsoft? Corp.? designs,? produces,? and? markets? the? Windows? operating? system,? a? library?of?consumer?software?titles,?video?game?consoles,?consumer?electronics,?and? a? modest? computer? peripheral? selection.? ? Bill? Gates,? among? others,? founded? ? 20?
Microsoft? in? 1975? with? the? intent? of? creating? a? consumer?oriented? computer? operating? system.? ? ? Microsoft? Windows? is? currently? used? by? over? 85%? of? personal? computers? worldwide,? [6]? however? the? rise? in? popularity? of? Apple? computers? is? causing? a? steady? decline? in? Windows? market? share.? Microsoft? looks? to? their? new? Windows? 7? operating? system? to? entice? consumers? to? switch? back? to? Windows.?? Microsoft?has?also?run?a?specifically?anti?Apple?ad?campaign,?looking?to?expose?some? of?the?benefits?of?using?Windows?over?Apple’s?Macintosh?computers.???
?
Figure?19:?Microsoft?Corp.?(NASDAQ:MSFT)?YearToDate?Price?Chart?
? ? Microsoft’s?Xbox?360?continues?to?be?a?strong?competitor?in?the?video?game?
console?market.??The?Xbox?360?holds?a?steady?second?place?in?overall?sales?in?the?US? (behind?Nintendo’s?Wii?console)?[5],?and?a?strong?reputation?as?a?significant?gaming? platform.? ? Microsoft? Office,? a? suite? of? business? software,? has? been? extremely? profitable,?contributing?to?the?company’s?consistent?growth.??? ? ? 21?
4.2.3?Raytheon?Company?(NYSE:RTN)? ? Raytheon?is?a?major?American?military?contractor?that?manufactures?defense?
systems? and? defense? electronics.? ? Raytheon? was? established? in? Cambridge,? Massachusetts?in?1922?and?is?currently?headquartered?in?Waltham,?Massachusetts.?? It?is?currently?the?world’s?largest?producer?of?guided?missiles,?[7]?including?the?MIM? 104? Patriot? cruise? missile,? which? played? a? significant? role? in? the? Persian? Gulf? War.?? Raytheon?also?manufactures?air?traffic?control?systems,?radar?systems,?satellite?and? communications?systems,?radioactive?materials?detection?systems,?semiconductors,? missiledefense?systems,?and?hi?tech?training?simulators.??Raytheon’s?broad?scope?of? products?and?their?wide?use?throughout?the?military?generate?billions?of?dollars?in? revenue?for?this?defense?giant.???
?
Figure?3:?Raytheon?Company?(NYSE:RTN)?YearToDate?Price?Chart?
? ?
?
22?
4.2.4?Google?Inc.?(NASDAQ:GOOG)? ? GoogleInc.?is?the?provider?of?the?leading?Internet?search?service?of?the?same?
name.? ? It? also? provides? email,? mapping,? office? productivity,? and? video? sharing? services.? ? Google? Inc.? was? founded? by? two? students? at? Stanford? University? in1998,? with?the?goal?“to?organize?the?worlds?information?and?make?it?universally?accessible? and?useful.?[9]”?It?has?been?listed?as?the?#1?place?to?work?by?Fortune?Magazine[8]? and? is? notorious? for? pursuing? unique? approaches? to? productivity? and? workplace? atmosphere.??Google?continues?to?be?a?leader?in?web?application?research?and?web? search?research.??Google?has?consistently?grown?and?expanded?to?become?one?of?the? country’s?largest?and?most?profitable?businesses.??
?
23?
?
Figure?4:?Google?Inc.?(NASDAQ:GOOG)?YearToDate?Price?Chart?
? 4.2.5?Electronic?Arts?Inc.?(NASDAQ:?ERTS)? ? Electronic? Arts? is? a? leading? producer,? designer,? and? distributor? of? video?
games.??Electronic?Arts?(informally?“EA”)?was?started?in?1982?and?was?a?pioneer?in? the?consumer?computer?game?market.??EA?has?created?some?of?the?most?well?known? and? longest?running? game? franchises,? such? as? Need? for? Speed,? Medal? of? Honor,? The? Sims,?and? Battlefield.The? Madden?NFL? football?game?series?has?consistently?been?the? best?selling?videogame?of?the?past?few?years,?and?retains?an?exclusive?license?for?all? NFL?team?names,?logos,?and?players.??Despite?their?fairly?dismal?sales?last?year,?EA?is?
?
24?
bouncing?back?with?more?blockbuster?titles,?such?as?Rock?Band,?further?contributing? to?EA’s?multi?billion?dollar?yearly?revenue.?
?
Figure?5:?Electronic?Arts?Inc?(NASDAQ:ERTS)?YearToDate?Price?Chart?
? 4.2.6?NVIDIA?Corp.?(NASDAQ:NVDA)? ? NVIDIA? Corp.? designs? graphics? processing? units? for? personal? computers,?
workstations,? and? video?game? consoles.? ? NVIDIA? was? founded? in? 1993? as? a? competitor?to?the?popular?3dfx?brand?graphics?cards?that?dominated?the?computer? graphics? market? of? the? mid?to?late? 1990’s.? ? In? 2000,? NVIDIA? acquired? 3dfx? and? became?one?of?the?top?graphics?card?manufacturers?along?with?rival?ATI.??NVIDIA’s? GeForce?chipset?line?has?been?very?successful?in?the?consumer?graphics?card?market,? outselling? competitive? ATI? models.? ? NVIDIA’s? Quadro? series? is? popular? with? computer?aided?design?(CAD)?workstations?and?professional?graphics?applications.?? NVIDIA? continues? to? push? the? boundaries? of? computer? graphics,? creating? some? of? the?most?advanced?graphics?processors?in?the?world.??Their?bleeding?edge?consumer? ? 25?
products? have? driven? NVIDIA’s? success,? generating? consistently? escalating? multi? billion?dollar?annual?revenue.?
?
Figure?6:?NVIDIA?Corp.?(NASDAQ:NVDA)?YearToDate?Price?Chart?
? 4.2.7?Intel?Corp.?(NASDAQ:INTC)? ? Intel?is?the?world’s?most?profitable?computer?processor?manufacturer.??Intel?
was? founded? in? 1968,? and? has? been? a? leading? pioneer? in? computer? hardware? development.??Their?“Intel?Inside”?marketing?campaign?in?the?1990’s?has?made?them? a? household? name.? ? Intel’s? Pentium? brand? processors? continue? to? be? some? of? the? most?powerful?consumer?processors?available.??Apple?computers?transitioned?from? the? in?house? developed? “PowerPC”? processor? to? Intel’s? “Core? 2? Duo”? line? of? processors?in?2005,?adding?to?Intel’s?already?strong?laptop?processor?market?share.?? Intel? also? manufactures? flash? memory? used? in? USB? thumb? drives? and? computer? solid?state? disk? drives.? ? Despite? declined? sales? due? to? the? recent? economic? crisis,?
?
26?
Intel? continues? to? outsell? rival? AMD? and? support? their? reputation? as? a? significant? computer?hardware?manufacturer.???
?
Figure?7:?Intel?Corp.?(NASDAQ:INTC)?YearToDate?Price?Chart?
? 4.2.8?Advanced?Micro?Devices,?Inc.?(NYSE:AMD)? ? Advanced? Micro? Devices? (AMD)? is? a? manufacturer? of? computer? processors.??
AMD? is? the? second?largest? global? supplier? of? consumer? computer? processors,? after? Intel.? ? AMD? was? founded? in? 1969? with? a? reverse?engineered? clone? of? the? popular? Intel?8080?microprocessor.??Since?then,?AMD’s?processors?have?grown?in?popularity.?? AMD’s? recent? developments? have? mainly? been? oriented? towards? the? mobile? computing? market.? AMD’s? Turionprocessors? have? been? especially? popular? in? the? mobile?computing?market.??In?2006,?AMD?acquired?ATI,?the?second?largest?graphics? processor?company?in?the?hopes?of?uniting?the?GPU?and?CPU?into?one?chip.??AMD?is?a? significant?competitor?in?the?mobile?processing?market,?and?continues?to?grow.?
?
27?
?
Figure?8:?Advanced?Micro?Devices,?Inc.?(NYSE:AMD)?YearToDate?Price?Chart?
? 4.2.9?Yahoo!?Inc.?(NASDAQ:YHOO)? ? Yahoo!? Inc.? is? a? web?based? company? known? for? its? search? engine,? email,?
news,? web?portal,? and? other? services.? ? Yahoo!? Inc.? was? incorporated? in? 1995? and? quickly?became?a?household?internet?brand?name.??Yahoo!?provides?many?consumer? services?including?email,?IM?and?SMS?messaging.??Yahoo!?is?also?a?major?aggregator? of? news? and? finance? information,? and? a? pioneer? in? web?application? research.?? Yahoo!’s? search? feature? was? recently? bought? out? by? Microsoft,? and? is? said? to? be? replaced? with? Microsoft’s? new? Bing? search? service? in? the? near? future.? ? Yahoo!’s? website?receives?over?1.575?billion?visitors?annually,?with?3.4?billion?page?views?per? day,?making?it?the?second?most?visited?website?in?the?world[10].??
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28?
?
Figure?9:?Yahoo!?Inc.?(NASDAQ:YHOO)?YearToDate?Price?Chart?
? ? 4.3?Simulation?1:?Swing?Trading? 4.3.1?Week?1:?June?17?–?June?26,?2009 ? This?first?week?begins?on?Wednesday,?June?17th?and?ends?on?Friday,?June?26th.??
I? combined? the? first? half? a? week? with? the? first? full? week,? because? I? didnot? have? sufficient?data?to?comment?on?for?the?first?half?week.??? ? My? initial? investment? consisted? of? stock? in? nine? companies.? ? I? purchased?
Apple?stock?in?anticipation?of?the?company’s?new?iPhone?3G?S?launch,?at?$135.58?per? share.? ? Apple? stock? has? always? been? considered? a? good? investment? because? of? its? moderate? fluctuation? and? general? growth? trend.? ? Despite? these? benefits,? it? is? very? expensive?stock?and?therefore?quite?inaccessible?without?a?significant?investment.??I?
?
29?
sold?my?100?shares?of?Apple?stock?late?Friday,?June?19th,?after?the?launch?of?the?new? iPhone?caused?a?spike?in?the?stock?price,?for?yield?of?$288.???
Table?1:?AAPL?Transactions?(June?17?–?June?26,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/17/09
AAPL
buy
$135.58
100
$13,568.00
86,432.00
06/19/09
AAPL
sell
$138.66
100
$13,856.00
288.00
25,278.50
288.00
?
?
Figure?20:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?9??June?19,?2009)?
I?purchased?Microsoft?stock?on?Wednesday,?June?17thbecause?of?the?launch?of? Microsoft’s? new? Bing? search? service.? ? News? of? this? new? launch? has? instilled? confidence? in? investors? and? therefore? caused? a? jump? in? the? stock? value.? ? Microsoft? stock?has?shown?somewhat?stagnant?growth,?possibly?due?to?the?lack?of?consumer? interest? in? their? new? Vista? operating? system.? ? Despite? this,? Microsoft? stock? price? oscillates?quite?a?bit,?presenting?the?possibility?of?steady?profit.??I?bought?200?shares? ?
30?
of? Microsoft? stock? at? $23.68.? ? Despite? the? launch? of? their? new? search? service,? the? value?of?Microsoft?stock?declined.??I?waited?for?a?relative?spike?in?price?and?sold?half? of?my?Microsoft?stock?on?Tuesday?the?24th?for?a?loss?of?$20.00.?
Table?2:?MSFT?Transactions??(June?17?–?June?26,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds 06/17/09 MSFT buy $23.68 200 $4,746.00 Profit/Loss Cash 81,686.00 Profit Total Total
06/23/09
MSFT
sell
$23.63
100
$2,353.00
(20.00)
48,258.50
160.00
06/25/09
MSFT
sell
$23.67
100
$2,357.00
(16.00)
101,779.20
1,742.20
? I?bought?Google?stock?because?of?my?confidence?in?the?Google?brand?and?the? stock’s?recent?fluctuation.??Google?stock?is?extremely?expensive,?and?like?Apple,?quite? inaccessible? to? personal? investors.? ? I? bought? 75? shares? on? Wednesday? the? 17thfor? $415.16?per?share,?and?sold?it?early?Friday?the?19th?for?$418.28?per?share,?for?a?gain? of?$214.00.??I?bought?75?more?shares?Monday,?June?22nd?because?of?my?success?with? Google? stock,? and? its? momentary? dip? in? price? that? day.? ? I? sold? all? 75? shares? on? Wednesday?the?24th?? ? ? ? ?
?
31?
Table?3:?GOOG?Transactions?(June?17??June?24,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/17/09
GOOG
buy
$415.16
75
$31,147.00
21,726.50
06/19/09
GOOG
sell
$418.28
75
$31,361.00
214.00
56,639.50
502.00
06/22/09
GOOG
buy
$405.30
75
$30,407.50
42,353.50
06/24/09
GOOG
sell
$410.30
75
$30,762.50
355.00
83,809.00
1,127.00
?
?
Figure?21:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?14??June?24,?2009)?
I?bought?Raytheon?stock?Wednesday?the?17th?due?to?the?fact?that?the?United? States? is? entangled? in? two? wars? overseas.? ? Raytheon? has? always? been? a? strong? company,? and? I? believed? that? because? of? the? conflicts? in? the? Middle? East? and? elsewhere,? Raytheon? would? receive? increased? business.? ? I? bought? 350? shares? at? $45.31?per?share?on?Wednesday,?and?sold?it?two?days?later?at?$46.09?for?a?net?profit? of?$253.00.? ? 32?
?
? Figure?22:?Raytheon?Corp.?(NYSE:RTN)?Price?Chart?(June?9??June?19,?2009)?
I?
also?
purchased?
Yahoo!(NASDAQ:YHOO),?
Intel(NASDAQ:INTC),?
NVIDIA(NASDAQ:NVDA),? Electronic? Arts(NASDAQ:ERTS),? and? AMD(NYSE:AMD)? stock?on?Wednesday?the?17thbecause?of?my?confidence?in?these?companies,?however? these?stocks?did?relatively?poorly?this?week.??I?deemed?these?bad?investments,?and? after?the?price?spiked?somewhat?on?Wednesday?the?24th,?I?cut?my?losses?and?sold?all? my?stocks?for?these?companies,?taking?a?total?net?loss?of?$916.??? ? ? ? ? ?
?
33?
Table?4:?INTC,?NVDA,?ERTS,?YHOO,?AMD?Transactions?(June?17?–?June?26,?2009)?
Net Date 06/17/09 06/17/09 06/17/09 06/17/09 06/17/09 06/23/09 06/23/09 06/24/09 06/24/09 06/24/09 Symbol INTC NVDA ERTS YHOO AMD AMD ERTS INTC YHOO NVDA buy/sell buy buy buy buy buy sell sell sell sell sell Price $16.14 $11.28 $20.83 $15.60 $4.08 $3.52 $20.44 $16.19 $15.28 $10.93 Shares 400 200 200 400 1,000 1000 200 400 400 200 Cost/Proceeds $6,466.00 $2,266.00 $4,176.00 $6,250.00 $4,090.00 $3,510.00 $4,078.00 $6,466.00 $6,102.00 $2,176.00 (580.00) (98.00) 0.00 (148.00) (90.00) Profit/Loss Total Cash 75,220.00 72,954.00 68,778.00 15,512.50 11,422.50 45,863.50 53,046.50 90,275.00 96,517.00 98,693.00 175.00 772.00 1,127.00 1,119.00 1,029.00 Total Profit
? I?bought?200?shares?of?Google?stock?on?Wednesday,?June?24th?at?$409.00?and? 40?more?after?the?price?declined?to?$407.67.??I?purchased?more?Google?stock?because? the?stock?price?had?been?trending?upwards?since?I?sold?my?initial?Google?investment? on?the?19th.??After?I?purchased?my?Google?stock,?the?price?continued?to?decline?and?I? decided? to? sell? it? all? before? I? lost? more? money.? ? A? few? hours? after? I? bought? them,? I? sold?the?latter?40?shares?for?$408.05?and?the?other?200?for?$408.57?for?a?combined? net?loss?of?$110.80.?? ? ? ?
?
34?
Table?5:?GOOG?Transactions?(June?24??June?26,2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/24/09
GOOG
buy
$409.00
200
$81,810.00
16,963.00
06/24/09
GOOG
buy
$407.67
40
$16,316.80
646.20
06/24/09
GOOG
sell
$408.05
40
$16,312.00
(4.80)
16,958.20
1,104.20
06/24/09
GOOG
sell
$408.57
200
$81,704.00
(106.00)
98,662.20
998.20
? Towards?the?end?of?the?day?Friday?the?26th,?I?bought?1000?shares?of?Raytheon? stock,?on?news?of?a?new?multi?billion?dollar?contract?from?the?US?military.??? ? 4.3.2?Week?2:?June?29?–?July?3,?2009? ? The? second? week? of? the? simulation,? I? was? not? nearly? as? aggressive,? as? the?
market?took?a?steady,?continued?decline.??I?sold?my?Raytheon?stock?Monday?the?29th? when?the?price?began?to?fall?dramatically,?suffering?a?$70.00?loss.??Thursday,?July?2nd? I?became?slightly?optimistic?of?a?late?week?rally?so?I?purchased?fifty?shares?of?Google? stock? at? $409.66,? as? well? as? 300? shares? of? Apple? at? $140.35,? and? 500? shares? of? Raytheon?at?$43.28.??I?chose?these?stocks?because?I?was?confident?that?they?would?do? well.??The?market?continued?to?fall,?albeit?less?dramatically,?forcing?me?to?sell?these? stocks?before?they?turned?into?significant?losses.??I?managed?to?sell?all?my?stocks?for?
?
35?
a?net?loss?of?$325.50?before?watching?their?prices?drop?significantly?towards?the?end? of?the?day?Friday.???
Table?6:?RTN,?GOOG,?AAPL?Transactions?(June?29??July?3,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/29/09
RTN
sell
$44.56
1000
$44,550.00
(70.00)
46,704.20
2,177.20
07/02/09
GOOG
buy
$409.66
50
$20,493.00
82,183.20
07/02/09
AAPL
buy
$140.35
300
$42,115.00
40,068.20
07/02/09
RTN
buy
$43.28
500
$21,650.00
18,418.20
07/03/09
GOOG
sell
$408.49
50
$20,414.50
(78.50)
38,832.70
2,560.70
07/03/09
RTN
sell
$43.01
500
$21,495.00
(155.00)
60,327.70
2,405.70
07/03/09
AAPL
sell
$140.02
300
$41,996.00
(119.00)
102,323.70
2,286.70
? ? This?week?has?taught?me?that?despite?what?I?may?think,?there?will?always?be? weeks?where?it?is?very?hard?to?make?a?profit.??It?has?also?shown?me?that?sometimes? the? best? thing? to? do? is? realize? that? you’ve? made? a? poor? investment? and? cut? your? losses.??? ?
?
36?
4.3.3?Week?3:?July?6?–?July?10,?2009? ? The?market?rose?early?in?the?week,?and?declined?towards?the?end?of?the?week,?
however?Google?stock?continued?to?rise?consistently?throughout?the?week.??I?bought? 100? shares? of? it? the? morning? of? Tuesday,? July? 7th? for? $40,175.00? at? $401.65? per? share.? ? I? also? bought? 300? shares? of? Apple? stock? at? ? $136.99? per? share,? totaling? $41.107,?and?950?shares?of?Microsoft?stock?at?$22.54,?totaling?$21,689.00.???
Table?7:?AAPL,?GOOG,?MSFT?Transactions?(July?7,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/07/09
AAPL
buy
$136.99
300
$41,107.00
62,419.70
07/07/09
GOOG
buy
$401.65
100
$40,175.00
22,244.70
07/07/09
MSFT
buy
$22.82
950
$21,689.00
555.70
? ? Thursday?I?decided?to?sell?all?my?stock?as?the?market?wasn’t?showing?signs?of?
recovery.??I?lost?$286.00?in?my?Microsoft?investment,?selling?all?950?shares?at?$22.54.?? I? sold? my? Apple? stock? for? a? meager? $25? profit? at? $137.14? per? share.? ? My? Google? investment,? however,? was? significantly? better.? ? I? sold? all? 100? shares? Thursday? for? $413.92?per?share,?for?a?net?profit?of?$1,207.00,?the?second?most?substantial?single? investment?gainI?had?during?this?simulation.? ?
?
37?
Table?8:?AAPL,?GOOG,?MSFT?Transactions?(July?9,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/09/09
MSFT
sell
$22.54
950
$21,403.00
(286.00)
21,958.70
3,203.70
07/09/09
AAPL
sell
$137.14
300
$41,132.00
25.00
63,090.70
3,228.70
07/09/09
GOOG
sell
$413.92
100
$41,382.00
1,207.00
104,472.70
4,435.70
?
?
Figure?23:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(June?30?July?10,?2009)?
?
Overall?this?week?was?profitable?due?to?my?ability?to?anticipate?the?market’s?
rise.? ? Google? stock? continued? to? be? a? good? investment? for? me,? though? Apple? was? significantly? less? predictable? than? normal.? ? This? week? has? shown? me? that? having? a? portfolio?of?a?many?companies?yields?the?best?chances?of?significant?profit.? ? ?
?
38?
4.3.4?Week?4:?July?13?–?July?20,?2009? ? Overall?this?week?provided?a?consistent?climbing?market,?which?was?very?
profitable?for?me.??I?invested?in?Apple?early?Wednesday,?July?15th?as?I’ve?had? generally?good?luck?with?Apple?stock?and?in?anticipation?of?a?rising?market?following? last?week’s?fairly?dull?market.??I?bought?300?shares?of?Apple?stock?at?$145.13?per? share,?totaling?$43,549.00.??I?also?bought?Novell?(NASDAQ:NOVL)?stock?Wednesday? because?their?price?had?dipped?unusually?low?due?to?allegations?of?security? vulnerabilities?in?their?SUSE?operating?system.??I?capitalized?on?this?situation?and? bought?13000?shares?at?$4.37?per?share,?totaling?a?$56,820.00?investment.???
Table?9:?AAPL,?NOVL?Transactions?(July?15,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/15/09
AAPL
buy
$145.13
300
$43,549.00
62,250.70
07/15/09
NOVL
buy
$4.37
13000
$56,820.00
5,430.70
? ? Thursday?the?16thI?sold?both?my?Novell?stock?and?my?Apple?stock.??I?sold?all?
300? shares? of? Apple? stock? for? $146.54? per? share? for? a? gain? of? $403.00.? ? My? Novell? investment,?however,?was?vastly?more?profitable.??I?sold?all?13000?shares?of?Novell? stock? at? $4.55? per? share,? yielding? a? profit? of? $2,320.00.? ? My? Novell? trade? was? the? highest?single?trade?profit?I?made?in?this?simulation.??? ?
?
39?
Table?10:?NOVL,?AAPL?Transactions?(July?16,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/16/09
NOVL
sell
$4.55
13000
$59,140.00
2,320.00
64,570.70
8,082.70
07/16/09
AAPL
sell
$146.54
300
$43,952.00
403.00
72,232.70
8,485.70
? I?bought?100?shares?of?Google?stock?on?Friday?the?17that??$429.61?for?a?total? investment? of? $42,971.00.? ? I? decided? to? purchase? Google? stock? because? of? my? profitable? past? investments? in? it? and? because? it? had? temporarily? fallen? in? price.? ? I? sold?it?the?morning?of?Monday?July?20that?$431.96?for?a?net?profit?of?$215.00.???
Table?11:?GOOG?Transactions?(July?17,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/17/09
GOOG
buy
$429.61
100
$42,971.00
65,135.70
07/20/09
GOOG
sell
$431.96
100
$43,186.00
215.00
109,001.70
8,964.70
? This?has?been?the?most?profitable?week?yet,?due?largely?to?the?profit?attained? through? the? Novell? stock? I? purchased.? ? I? have? learned? to? take? advantage? of? momentary?dips?in?stock?prices,?as?they?are?easy?to?profit?on.??? ? ?
?
40?
4.3.5?Summary? ? Swing?trading?was?difficult,?though?it?required?less?constant?attention?to?the?
market’s?movement?than?other?strategies,?such?as?day?trading.??My?most?profitable? swing? trading? investments? involved? research? into? current? events? and? announcements? regarding? companies? I? was? investing? in.? ? Knowing? generally? how? investors? would? react? to? different? events? helped? me? anticipate? movement? in? the? market.??? ? One?of?my?more?successful?investments?was?with?Google.??I?had?a?fairly?good?
history? investing? in? Google,? and? I? was? confident? that? the? announcement? of? their? proposed? operating? system? would? instill? confidence? in? investors.? ? I? purchased? approximately? $40,000? of? Google? stocks? on? July? 7thas? the? announcement? surfaced,? and? watched? the? price? jump? up? $4.? ? I? sold? the? stock? at? the? height? of? the? hype? for? Google’s?new?operating?system,?and?made?over?$1000.??? ? I?found?that?the?key?to?success?in?swing?trading?is?to?research?the?companies?
you’re? going? to? be? investing? in.? ? Having? a? base? of? knowledge? about? the? company,? along?with?a?reliable?source?of?news?regarding?that?company?is?extremely?important? when? monitoring? swing?trading? investments.? ? Swing? trading? is? slightly? more? challenging,?and?more?involved?than?day?trading,?though?it?can?be?less?risky.??Swing? trading? is? a? good? strategy? for? personal? investors? who? don’t? want? to? have? to? constantly? monitor? small? changes? in? the? market,? nor? take? large? financial? risks? in? huge?investments.??? ? ? 41?
4.4?Simulation?2:?Day?Trading? 4.4.1?Week?1:?June?17?–?June?26,?2009? ? For? the? day? trading? aspect? of? my? simulation,? I? relied? on? Google? Finance? to?
track?changes?in?the?stock?market?and?show?stocks?that?have?changed?significantly? during?that?day.??The?site?features?a?list?of?stocks?ordered?by?the?highest?percentage? fluctuation.? ? I? used? this? to? find? stocks? whose? values? were? accelerating? rapidly? that? day.??I?paid?little?attention?to?the?companies?I?was?investing?in,?focusing?on?nothing? other? than? the? stock? value’s? movement.? ? My? strategy? was? strictly? focused? on? numbers.? The?first?investment?I?made?was?in?CommScope?Inc?(NYSE:CTV)?on?Tuesday,? June?23rd.??I?bought?300?shares?at?$23.81?because?of?CTV’s?rapid?price?acceleration.??I? sold?the?300?shares?approximately?1?hour?later?when?I?saw?the?price?start?to?level?off? for?$24.00?a?share,?making?a?net?profit?of?$212.00.??The?second?investment?I?made? was?in?CSX?Corporation?(NYSE:CSX),?also?on?Tuesday.??I?bought?100?shares?at?$32.00? and?sold?them?about?an?hour?later?because?I?saw?CSX’s?acceleration.??I?sold?all?100? shares?at?$32.25?for?a?net?profit?of?$5.00.???
Table?12:?CTV,?CSX?Transactions?(June?23,?2009)?
Net Date 06/23/09 06/23/09 06/23/09 06/23/09 Symbol CTV CSX CTV CSX buy/sell buy buy sell sell Price $23.81 $32.00 $24.00 $32.25 Shares 300 100 300 100 Cost/Proceeds $7,153.00 $3,210.00 $7,190.00 $3,215.00 37.00 5.00 Profit/Loss Total Cash 38,710.50 35,500.50 42,690.50 45,905.50 212.00 180.00 Total Profit
?
42?
? That? same? day,? June? 23rd,? I? bought? and? sold? Ford? Motor? Company? (NYSE:F)? stock? very? aggressively.? ? I? chose? to? invest? in? Ford? because? of? its? low? cost,? and? somewhat? regular? price? fluctuation.? ? My? first? investment? was? a? purchase? of? 1000? shares? at? $5.49.? ? I? quickly? realized? that? this? would? not? yield? a? sizeable? return,? so? I? bought?4000?more?shares?at?the?same?price,?bringing?my?investment?to?5000?shares? totaling? $27,470? (including? trading? fees).? ? I? closely? monitored? the? stock? price? and? sold? my? 5000? shares? a? few? minutes? later? when? the? price? rose? to? $5.53.? ? This? transaction?yielded?a?net?profit?of?$170.??A?few?minutes?later,?when?the?price?took?a? small?dip,?I?bought?8000?more?shares?at?$5.52?per?share.??I?sold?them?minutes?later? at?$5.59,?yielding?a?net?profit?of?$540.00.??These?investments?showed?me?the?value?of? somewhat? regular? price? fluctuation? in? profitable? day? trading.? ? These? two? investments? also? showed? me? that? the? dollar? amount? fluctuation? wasn’t? nearly? as? important?as?the?percent?fluctuation?in?determining?a?stock’s?profitability.???
Table?13:?F?Transactions?(June?23,?2009)?
Net Date 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 Symbol F F F F F buy/sell buy buy sell buy sell Price $5.49 $5.49 $5.53 $5.52 $5.59 Shares 1000 4000 5000 8000 8000 Cost/Proceeds $5,500.00 $21,970.00 $27,640.00 $44,170.00 $44,710.00 540.00 170.00 Profit/Loss Total Cash 42,758.50 20,788.50 48,428.50 4,258.50 48,968.50 870.00 330.00 Total Profit
?
43?
?
?
Figure?24:?Ford?Motor?Co.?(NYSE:F)?Price?Chart?(June?17??June?27,?2009)?
?
On? Thursday? the? 25th? I? bought? Red? Hat? Inc.? (NYSE:RHT)? stock? and? Teck?
Resources?Limited?(NYSE:?TCK)?stock?because?of?their?movement?that?day.??I?bought? 2000? shares? of? Red? Hat? and? 1000? shares? of? TCK? totaling? nearly? $37,000.00? and? a? little? over? $15,000.00? respectively.? ? I? sold? these? stocks? a? few? hours? later? as? their? prices?peaked?for?a?total?profit?of?$760.?
Table?14:?RHT,?TCK?Transactions?(June?25,?2009)?
Net Date 06/25/09 06/25/09 06/25/09 06/25/09 Symbol RHT TCK RHT TCK buy/sell buy buy sell sell Price $18.47 $15.46 $18.81 $15.58 Shares 2000 1000 2000 1000 Cost/Proceeds $36,950.00 $15,470.00 $37,610.00 $15,570.00 660.00 100.00 Profit/Loss Total Cash 61,712.20 46,242.20 83,852.20 99,422.20 1,658.20 1,758.20 Total Profit
?
?
44?
On? Friday? the? 26th,? I? watched? the? price? of? Google? stock? rise? dramatically.? ? I? bought?100?shares?at?$415.67?and?sold?it?several?hours?later?for?$422.02?for?a?gain?of? $615.00.? ? I? also? bought? Yahoo? stock? hoping? that? the? price? would? continue? to? rise.?? The?price?of?Yahoo?stock?leveled?out?after?I?bought?it,?however?I?managed?to?make?a? meager?profit?of?$40.00.??I?also?bought?1000?shares?of?Microsoft?stock.??Despite?my? expectations? that? it? would? rise,? the? price? of? Microsoft? stock? hovered? around? the? same? price,? with? a? slight? downward? trend.? ? I? cut? my? losses? at? $150.00,? selling? all? 1000?shares.?
Table?15:?GOOG,?YHOO,?MSFT?Transactions?(June?26,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/26/09
GOOG
buy
$415.67
100
$41,577.00
60,202.20
06/26/09
YHOO
buy
$15.62
1000
$15,630.00
44,572.20
06/26/09
MSFT
buy
$23.55
1000
$23,560.00
21,012.20
06/26/09
MSFT
sell
$23.42
1000
$23,410.00
(150.00)
44,422.20
1,592.20
06/26/09
GOOG
sell
$422.02
100
$42,192.00
615.00
86,614.20
2,207.20
06/26/09
YHOO
sell
$15.68
1000
$15,670.00
40.00
102,284.20
2,247.20
? ? ?
?
45?
4.4.2?Week?2:?June?29?–?July?3,?2009? ? The?overall?trend?of?the?market?this?week?was?down,?so?it?was?more?
important?that?I?made?good?day?trading?decisions.??The?meager?prospects?for?swing? trading?this?week?forced?me?to?find?the?few?stocks?doing?relatively?well,?and?utilize? their?gains?to?make?a?profit.??? I?bought?7500?shares?of?Rockwell?Medical?Technologies?Inc.?(NASDAQ:RMTI)? stock? Monday,? June? 29th? for? $7.40,? after? its? price? fell? dramatically? in? overnight? trading.??I?saw?the?price?trend?rebounding,?and?I?thought?I’d?take?my?chances.??I?sold? it? later? in? the? day,? after? realizing? that? the? rebound? wasn’t? as? dramatic? as? I? anticipated.??I?sold?the?stock?for?$7.42?per?share,?making?a?net?profit?of?$130.00.?
Table?16:?RMTI?Transactions?(June?29,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/29/09
RMTI
buy
$7.40
7500
$55,510.00
2,154.20
06/29/09
RMTI
sell
$7.42
7500
$55,640.00
130.00
102,344.20
2,307.20
?
?
46?
?
Figure?25:?Rockwell?Medical?Technologies?(NASDAQ:RMTI)?Price?Chart?(June?23??July?3,?2009)?
There? weren’t? many? good? options? for? day? trading? this? week.? ? Only? a? few? sparse?stocks?were?profitable,?and?finding?them?was?difficult.??I?bought?100?shares?of? Google? stock? Thursday,? July? 1stfor? $421.50,? hoping? to? profit? off? the? normal? oscillation?of?its?price.??I?sold?about?25?minutes?later?at?$425.02,?as?my?confidence?in? it?going?much?higher?was?very?slim.??My?conservative?decisions?paid?off,?making?me? a?net?profit?of?$332.00?as?the?price?of?Google?tumbled.???
Table?17:?GOOG?Transactions?(July?1,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/01/09
GOOG
buy
$421.50
100
$42,160.00
60,184.20
07/01/09
GOOG
sell
$425.02
100
$42,492.00
332.00
102,676.20
2,639.20
? This? week? has? shown? me? that? day? trading? is? one? of? the? only? options? in? a? downward?trending?market,?and?that?finding?a?profitable?stock?is?difficult.??I?forced? ?
47?
myself? to? back? out? of? any? investment? that? lost? me? more? than? $100? or? gained? me? more?than?$200,?as?I?had?little?room?for?experimentation.??I?found?stocks?that?were? significantly?lower?than?usual,?and?anticipated?their?rebounds.??I?was?forced?to?play? it?smart,?and?not?get?too?greedy.??? ? 4.4.3?Week?3:?July?6?–?July?10,?2009? ? I?bought?100?shares?of?Google?and?300?shares?of?Apple?stock?the?morning?of?
Monday,? July? 6th,? after? prices? took? a? momentary? dip.? ? My? investment? in? Google? totaled? $40,391.00? at? $403.81? per? share,? while? my? Apple? investment? totaled? $40,930.00?at?$136.40?per?share.??I?watched?the?price?of?both?stocks?consistently?rise? all?day.??I?noted?a?slight?plateau?tendency?in?the?early?afternoon?and?sold?all?of?my? shares?in?both?companies.??I?sold?my?Apple?stock?for?$138.61?per?share,?for?a?yield?of? $643.00.? ? I? sold? my? Google? stock? for? $409.61? per? share,? for? a? yield? of? $560.00.? ? In? total?I?made?$1,203.00?Tuesday.? ? ? ? ?
?
48?
Table?18:?GOOG,?AAPL?Transactions?(July?6,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/06/09
GOOG
buy
$403.81
100
$40,391.00
61,932.70
07/06/09
AAPL
buy
$136.40
300
$40,930.00
21,002.70
07/06/09
AAPL
sell
$138.61
300
$41,573.00
643.00
62,575.70
2,929.70
07/06/09
GOOG
sell
$409.61
100
$40,951.00
560.00
103,526.70
3,489.70
?
?
Figure?26:?Apple?Inc.?(NASDAQ:AAPL)?Price?Chart?(June?30??July?10,?2009)?
?
After? Tuesday’s? jump,? the? market? fell? fairly? consistently? until? about? noon?
Thursday,? July? 9th.? ? I? bought? 20,000? shares? of? Novell? stock? early? afternoon? on? Friday.??I?had?noticed?that?towards?the?end?of?the?day?on?Fridays,?the?market?tends? to? take? a? little? skip? upwards? as? many? investors? do? not? like? to? keep? stocks? over? a? weekend.?Anticipating?the?usual?late?Friday?rally,?I?invested?$84,210.00?at?$4.21?per?
?
49?
share.??My?prediction?of?a?late?Friday?rally?was?correct,?and?I?sold?my?Novell?stock? right?before?closing?Friday?for?$4.26?per?share,?earning?me?a?profit?of?$980.00.?
Table?19:?NOVL?Transactions?(July?10,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/10/09
NOVL
buy
$4.21
20000
$84,210.00
20,262.70
07/10/09
NOVL
sell
$4.26
20000
$85,190.00
980.00
105,452.70
5,415.70
?
?
Figure?27:?Novell?Inc.?(NASDAQ:NOVL)?Price?Chart?(June?30??July?10,?2009)?
? 4.4.4?Week?4:?July?13?–?July?20,?2009? ? I?began?buying?this?week?on?Tuesday,?July14thwith?300?shares?of?Apple?and?
3000? shares? of? Oracle(NASDAQ:ORCL).? ? I? invested? the? $42,490.00? in? Apple? at? $141.60?per?share,?while?my?Oracle?investment?totaled?$61,540?at?$20.51?per?share.??
?
50?
I? watched? the? market? rise? Tuesday,? and? noticed? a? slight? peaking? tendency? in? the? prices?of?both?Apple?and?Oracle?toward?the?end?of?the?day.???I?was?unsure?as?to?how? consistent?the?market’s?rise?would?be?so?I?decided?to?sell?both?my?Apple?and?Oracle? stocks.???
? Table?20:?ORCL,?AAPL?Transactions?(July?14,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/14/09
ORCL
buy
$20.51
3000
$61,540.00
43,912.70
07/14/09
AAPL
buy
$141.60
300
$42,490.00
1,422.70
07/14/09
ORCL
sell
$20.58
3000
$61,730.00
190.00
63,152.70
5,605.70
07/14/09
AAPL
sell
$142.19
300
$42,647.00
157.00
105,799.70
5,762.70
? ? On? Thursday,? July? 16thI? bought? Intel? and? Google? stock? in? hopes? that? the?
upward?market?trend?would?continue.??Unfortunately,?the?value?of?Intel?and?Google? stocks?declined?and?I?was?forced?to?settle?with?a?combined?loss?of?$416.00.??Buying? at? a? poor? time? caused? my? loss.? ? I? bought? both? stocks? while? their? price? was? at? a? plateau,?a?strategy?that?has?seldom?worked?for?me?in?the?past.??I?should?have?waited? until?their?values?declined?steadily?and?were?beginning?to?rise.??? ?
?
51?
Table?21:?INTC,?GOOG?Transactions?(July?16,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/16/09
INTC
buy
$18.14
2000
$36,290.00
28,280.70
07/16/09
GOOG
buy
$438.63
100
$43,873.00
28,359.70
07/16/09
INTC
sell
$18.03
2000
$36,050.00
(240.00)
64,409.70
8,245.70
07/16/09
GOOG
sell
$437.07
100
$43,697.00
(176.00)
108,106.70
8,069.70
?
?
Figure?28:?Google?Inc.?(NASDAQ:GOOG)?Price?Chart?(July?7??July?17,?2009)?
?
Finally,?I?bought?10000?shares?of?Ford?stock?at?$6.06?per?share?on?Friday,?the?
17th.??This?investment?totaled?$60,610.00.??I?chose?to?make?this?investment?in?Ford? because?the?price?fluctuates?frequently,?and?it?seemed?to?be?on?an?upward?trend.??I? sold?the?stock?later?that?day?for?$6.13?per?share,?bringing?me?a?net?profit?of?$680.00.??
?
52?
With?a?careful,?patient?eye?on?the?price,?I?noticed?an?upward?trend,?and?was?able?to? correctly?anticipate?a?price?jump?for?Ford?stock?and?profit?from?it.???
Table?22:?F?Transactions?(July?17,?2009)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
07/17/09
F
buy
$6.06
10000
$60,610.00
4,525.70
07/17/09
F
sell
$6.13
10000
$61,290.00
680.00
65,815.70
8,749.70
? ? 4.4.5?Summary? ? Overall,?my?day?trading?experience?was?especially?profitable.??High?risk,?high?
cost?investments?were?the?most?profitable.??I?used?a?numbers?only?approach?to?day? trading.? ? I? focused? only? on? significant? fluctuations? in? price,? and? anticipated? future? changes? by? observing? the? overall? trend? of? the? stock? that? day? in? the? context? of? the? stock’s?recent?history.??? ? My? most? successful? day? trading? investments? were? towards? the? afternoon,?
involving? significant? investments? that? relied? on? small? fluctuations? in? price? (sometimes?only?a?few?cents?in?change).??I?began?the?experiment?with?a?tendency?to? hold?on?to?stocks?as?their?price?went?up,?hoping?for?a?huge?profit.??This?did?not?work? as?well?as?I?anticipated,?as?many?stocks?would?rise?briefly,?and?then?fall?lower?than? the?price?I?paid?for?them,?resulting?in?a?loss.??I?abandoned?this?idea?and?began?selling? stocks?as?soon?as?I?could?make?a?sizeable?profit,?usually?anything?over?$200,?or?when? the?price?began?to?show?the?smallest?hint?of?falling?again.??If?the?stock?I?was?investing?
?
53?
in?fell?to?the?point?where?I?would?loose?more?than?$100,?I?sold?it?with?the?intention?of? minimizing? potential? losses.? ? This? more? conservative? method? was? much? more? reliable? and? sustainable,? though? I? did? not? make? the? maximum? possible? profit? from? my?investments.??I?find?that?this?strategy?is?most?applicable?to?personal?investments,? and?causes?minimal?stress?on?the?investor.??? ? Having?a?clear?set?of?rules?and?goals?about?what?and?how?to?invest?was?the?
key?to?my?success?in?day?trading.??Day?trading?involves?many?quick,?often?emotional? decisions.? ? Having? a? clear? set? of? investing? rules? unburdens? the? investor? of? this? emotional? attachment? to? trading? and? helps? maintain? consistent? profitability.?? Despite? its? volatility,? day? trading? can? be? a? very? exciting? and? rewarding? investment? opportunity.? ? ? ? ? ? ? ? ?
?
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5.??Conclusion?
? My?investment?simulation?was?successful?both?financially?and?in?exposing?the?
most? important? aspects? of? both? swing? trading? and? day? trading.? ? I? began? this? experiment?with?little?knowledge?of?how?to?successfully?invest?in?the?stock?market,? nor? what? factors? influence? the? market’s? constant? change.? ? I? exceeded? my? financial? goal? of? $4,000,? making? $9,001.70? in? net? profit.? ? Through? a? few? mistakes? and? some? experimentation,?I?was?able?to?define?the?fundamentals?of?successful?investing.??? ? I?found?that?day?trading?was?the?easiest?strategy?for?someone?new?to?trading?
stocks.?? My? day? trading?rules? were?simple,? yet? following?them?yielded? a?consistent? profit.? ? I? discovered? that? successful? day? trading? involves? making? relatively? conservative?decisions,?and?not?being?overly?greedy.??My?worst?investments?in?day? trading?were?the?result?of?my?attempts?at?selling?for?a?maximum?profit.??I?set?a?few? rules?to?help?me?decide?when?to?buy?and?sell?stocks,?and?not?following?them?led?me? to? avoidable? losses.? ? I? sold? stocks? that? either? made? me? more? than? $200? or? lost? me? more?than?$100,?and?looked?only?at?the?price?change,?and?the?potential?for?growth? that?day.??When?I?followed?these?simple?rules,?I?was?consistently?profitable.? ? Swing?trading?was?less?profitable?during?my?4?week?simulation,?however?it?is?
a? viable? opportunity? for? personal? investors.? ? Researching? the? companies? I? was? investing? in? helped? tremendously? in? anticipating? the? future? value? of? stocks.?? Knowing? what? causes? other? investors? to? buy? or? sell? a? stock,? and? anticipating? their? actions? is? also? pivotal? to? success? in? swing? trading.? ? When? I? was? able? to? anticipate?
?
55?
events? that? caused? the? value? of? the? stock? to? fluctuate? significantly,? I? was? able? to? make?a?profitable?investment.??? ? I?have?found?that?the?stock?market?can?be?very?lucrative.??By?following?a?clear?
set?of?rules,?an?investor?can?produce?a?consistent?gain?through?day?trading.??A?basic? understanding? of? the? psyche? of? investors,? along? with? diligent? research? can? make? swing? trading? an? effective? investing? strategy.? ? Through? my? research? and? experimentation,?I?have?gained?a?more?profound?understanding?of?the?stock?market,? investor? psyche,? and? the? foundation? of? the? US? financial? system.? ? I? hope? to? employ? what? I’ve? learned? through? this? simulation? in? my? own? stock? investments? in? the? future.??? ? ? ? ? ? ? ? ? ?
?
56?
References?
1. "Stock Market." The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. 07 Jun. 2009. <Dictionary.com http://dictionary.classic.reference.com/browse/Stock Market>. 2. NYSE Group Shares Outstanding and Market Capitalization of Companies Listed, 2009. June 7, 2009. <http://www.nyxdata.com/nysedata/default.aspx?tabid=115> 3. Full Description: Apple Inc. (Nasdaq). June 7, 2009 <http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=A APL.O> 4. iPod Sales, Quarterly and Total. June 7, 2009 <http://www.systemshootouts.org/ipod_sales.html> 5. Nintendo’s Wii takes console lead, June 7, 2009 <http://www.ft.com/cms/s/0/51df0c84-6154-11dc-bf250000779fd2ac.html?nclick_check=1>
6. Operating System Market Share. June 7, 2009 <http://marketshare.hitslink.com/operating-system-marketshare.aspx?qprid=8> 7. Missile maker hopes to diversify, create technology for Peacetime. June 7, 2009. <http://www.sazhightechconnect.com/headlines/index.cfm?action=view& articleID=265>
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8. 100 Best Companies to Work For 2007. June 7, 2009 <http://money.cnn.com/magazines/fortune/bestcompanies/2007/full_list/ > 9. Google.com Corporate Information. June 7, 2009 <http://www.google.com/corporate/>
10. Alexa.com Site Info: Yahoo.com. June 7, 2009
<http://www.alexa.com/siteinfo/yahoo.com>?
? ? ? ? ? ? ? ? ? ? ? ?
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Appendix:?Complete?Transaction?Record?
(Day?trading?transactions?are?highlighted?in?yellow)?
Net Date Symbol buy/sell Price Shares Cost/Proceeds Profit/Loss Total Cash Total Profit
06/17/09 06/17/09 06/17/09 06/17/09 06/17/09 06/17/09
AAPL MSFT INTC NVDA ERTS RTN
buy buy buy buy buy buy
$135.58 $23.68 $16.14 $11.28 $20.83 $45.31
100 200 400 200 200 350
$13,568.00 $4,746.00 $6,466.00 $2,266.00 $4,176.00 $15,868.50
86,432.00 81,686.00 75,220.00 72,954.00 68,778.00 52,909.50
06/17/09 06/17/09 06/17/09
GOOG YHOO AMD
buy buy buy
$415.16 $15.60 $4.08
75 400 1,000
$31,147.00 $6,250.00 $4,090.00
21,726.50 15,512.50 11,422.50
06/19/09
AAPL
sell
$138.66
100
$13,856.00
288.00
25,278.50
288.00
06/19/09 06/19/09
GOOG RTN
sell sell
$418.28 $46.09
75 350
$31,361.00 $16,121.50
214.00 253.00
56,639.50 72,761.00
502.00 755.00
06/22/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09 06/23/09
GOOG AMD CTV CSX CTV CSX MSFT F F F F
buy sell buy buy sell sell sell buy buy sell buy
$405.30 $3.52 $23.81 $32.00 $24.00 $32.25 $23.63 $5.49 $5.49 $5.53 $5.52
75 1000 300 100 300 100 100 1000 4000 5000 8000
$30,407.50 $3,510.00 $7,153.00 $3,210.00 $7,190.00 $3,215.00 $2,353.00 $5,500.00 $21,970.00 $27,640.00 $44,170.00 170.00 37.00 5.00 (20.00) (580.00)
42,353.50 45,863.50 38,710.50 35,500.50 42,690.50 45,905.50 48,258.50 42,758.50 20,788.50 48,428.50 4,258.50 330.00 212.00 180.00 160.00 175.00
?
59?
06/23/09 06/23/09
F ERTS
sell sell
$5.59 $20.44
8000 200
$44,710.00 $4,078.00
540.00 (98.00)
48,968.50 53,046.50
870.00 772.00
06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09 06/24/09
GOOG INTC AM MGM MGM AM YHOO NVDA HLIT HLIT
sell sell buy buy sell sell sell sell buy sell
$410.30 $16.19 $8.94 $6.71 $6.69 $9.14 $15.28 $10.93 $5.59 $5.60
75 400 1000 1000 1000 1000 400 200 10000 10000
$30,762.50 $6,466.00 $8,950.00 $6,720.00 $6,680.00 $9,130.00 $6,102.00 $2,176.00 $55,910.00 $55,990.00
355.00 0.00
83,809.00 90,275.00 81,325.00 74,605.00
1,127.00 1,127.00
(40.00) 180.00 (148.00) (90.00)
81,285.00 90,415.00 96,517.00 98,693.00 42,783.00
1,087.00 1,267.00 1,119.00 1,029.00
80.00
98,773.00
1,109.00
06/24/09
GOOG
buy
$409.00
200
$81,810.00
16,963.00
06/24/09
GOOG
buy
$407.67
40
$16,316.80
646.20
06/24/09
GOOG
sell
$408.05
40
$16,312.00
(4.80)
16,958.20
1,104.20
06/24/09 06/25/09 06/25/09 06/25/09 06/25/09
GOOG RHT TCK RHT TCK
sell buy buy sell sell
$408.57 $18.47 $15.46 $18.81 $15.58
200 2000 1000 2000 1000
$81,704.00 $36,950.00 $15,470.00 $37,610.00 $15,570.00
(106.00)
98,662.20 61,712.20 46,242.20
998.20
660.00 100.00
83,852.20 99,422.20
1,658.20 1,758.20
06/25/09
MSFT
sell
$23.67
100
$2,357.00
(16.00)
101,779.20
1,742.20
06/26/09 06/26/09 06/26/09 06/26/09
GOOG YHOO MSFT MSFT
buy buy buy sell
$415.67 $15.62 $23.55 $23.42
100 1000 1000 1000
$41,577.00 $15,630.00 $23,560.00 $23,410.00 (150.00)
60,202.20 44,572.20 21,012.20 44,422.20 1,592.20
06/26/09
GOOG
sell
$422.02
100
$42,192.00
615.00
86,614.20
2,207.20
?
60?
06/26/09 06/26/09 06/29/09 06/29/09
YHOO RTN RMTI RTN
sell buy buy sell
$15.68 $44.61 $7.40 $44.56
1000 1000 7500 1000
$15,670.00 $44,620.00 $55,510.00 $44,550.00
40.00
102,284.20 57,664.20 2,154.20
2,247.20
(70.00)
46,704.20
2,177.20
06/29/09
RMTI
sell
$7.42
7500
$55,640.00
130.00
102,344.20
2,307.20
07/01/09
GOOG
buy
$421.50
100
$42,160.00
60,184.20
07/01/09
GOOG
sell
$425.02
100
$42,492.00
332.00
102,676.20
2,639.20
07/02/09
GOOG
buy
$409.66
50
$20,493.00
82,183.20
07/02/09 07/02/09
AAPL RTN
buy buy
$140.35 $43.28
300 500
$42,115.00 $21,650.00
40,068.20 18,418.20
07/03/09 07/03/09
GOOG RTN
sell sell
$408.49 $43.01
50 500
$20,414.50 $21,495.00
(78.50) (155.00)
38,832.70 60,327.70
2,560.70 2,405.70
07/03/09
AAPL
sell
$140.02
300
$41,996.00
(119.00)
102,323.70
2,286.70
07/06/09
GOOG
buy
$403.81
100
$40,391.00
61,932.70
07/06/09
AAPL
buy
$136.40
300
$40,930.00
21,002.70
07/06/09
AAPL
sell
$138.61
300
$41,573.00
643.00
62,575.70
2,929.70
07/06/09
GOOG
sell
$409.61
100
$40,951.00
560.00
103,526.70
3,489.70
07/07/09
AAPL
buy
$136.99
300
$41,107.00
62,419.70
07/07/09 07/07/09
GOOG MSFT
buy buy
$401.65 $22.82
100 950
$40,175.00 $21,689.00
22,244.70 555.70
?
61?
07/09/09
MSFT
sell
$22.54
950
$21,403.00
(286.00)
21,958.70
3,203.70
07/09/09
AAPL
sell
$137.14
300
$41,132.00
25.00
63,090.70
3,228.70
07/09/09 07/10/09
GOOG NOVL
sell buy
$413.92 $4.21
100 20000
$41,382.00 $84,210.00
1,207.00
104,472.70 20,262.70
4,435.70
07/10/09 07/14/09
NOVL ORCL
sell buy
$4.26 $20.51
20000 3000
$85,190.00 $61,540.00
980.00
105,452.70 43,912.70
5,415.70
07/14/09 07/14/09
AAPL ORCL
buy sell
$141.60 $20.58
300 3000
$42,490.00 $61,730.00 190.00
1,422.70 63,152.70 5,605.70
07/14/09
AAPL
sell
$142.19
300
$42,647.00
157.00
105,799.70
5,762.70
07/15/09 07/15/09 07/16/09 07/16/09
AAPL NOVL NOVL INTC
buy buy sell buy
$145.13 $4.37 $4.55 $18.14
300 13000 13000 2000
$43,549.00 $56,820.00 $59,140.00 $36,290.00 2,320.00
62,250.70 5,430.70 64,570.70 28,280.70 8,082.70
07/16/09
AAPL
sell
$146.54
300
$43,952.00
403.00
72,232.70
8,485.70
07/16/09 07/16/09
GOOG INTC
buy sell
$438.63 $18.03
100 2000
$43,873.00 $36,050.00 (240.00)
28,359.70 64,409.70 8,245.70
07/16/09
GOOG
sell
$437.07
100
$43,697.00
(176.00)
108,106.70
8,069.70
07/17/09 07/17/09 07/17/09
GOOG F F
buy buy sell
$429.61 $6.06 $6.13
100 10000 10000
$42,971.00 $60,610.00 $61,290.00 680.00
65,135.70 4,525.70 65,815.70 8,749.70
07/20/09
GOOG
sell
$431.96
100
$43,186.00
215.00
109,001.70
8,964.70
?
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62?
doc_651902705.pdf