Trading Journal

Trading Journal

BUS: 136

Wang Haoyu and Sun Xiaotian

a.

Strategy:

We diversified our investment choice to avoid market risk.

We invested companies with good performance like NVDA and bore higher risks to get excess return.

We also invested some small companies with low risk.

Goals:

We wanted to avoid market risk and to get an excess return for about 5%.

b.

Yes, we used some risk limitation criteria, such as limit orders and stop orders on our portfolio.

For example, on 10/20/2016, we set a limit-buy order on GE at the price of 29.00, but fortunately, the market price didn’t reach it. So the order was expired.We set a stop-sell order at on our AAPL equity at the price of 117.00 and the order filled at the price of 116.97.

c.

We picked our positions which are well-known and have good performance or introduce the newest products, such as NVDA. Well-known means that we can get more information about them to get correct judgments. Good performance means that we can get higher excess returns and bear lower risks compare with other equities.The introduction of new products means that their performance will improve.

Exit strategies: We will not exit because of the rise and fall of the stock.We will be based on the company's recent performance to decide whether to exit.

d.

Yes.It was difficult to find the information about positions.So we can’t made the best decision.

e.

Max loss: $-15702.00(-1.73%) on B-ACE-9.700-01042030. We bought 600 B-ACE-9.700-01042030 at the price of 1515.00 and now its price is 1488.83.

Max gain in $: $117839.74 on NVDA. We bought 7002 NVDA equities at the price of $70.81 and now its price is $87.64.

Max gain in %: 59.72% in ESEA.We bought 5000 ESEA equities at the price of $1.44 and now its price is $2.30.

f. Final Results: The total value of our portfolio is $1107459.22 and the return percentage is 10.75%.

 We did a good job in our portfolio and reach our goals. The performance on the equities is good and we earn a large sum of money on NDVA. Fortunately,on the 11.11,the stock in the technology sector as a whole for the second consecutive day of decline in the occasion of the contrarian soared nearly 15% in the aftermath of Friday is soaring nearly 30% to close at $ 87.97 the highest in history.We should pay attention to the risk control and the company's recent situation in future stock trading.

g.