Final Report

Final ReportIn this report I will be addressing the following:
• My client’s Investment Policy Statement
•My strategy of buying or selling securi9es
•The analyst I followed/main source of informa9on
•The posi9ons/assets that exceeded my expecta9ons and what caused this
•The posi9ons/assets that underperformed and the factors that created the performance gap.
•The key things I learned from the Virtual Stock Exchange experience.
• How my Virtual Stock Exchange experience has influenced my personal inves9ng in the
Future.
During the 9me from January 4th, 2023, to May 2nd, 2023, my clients entrusted me with
their money to profitably invest it and earn a return that is greater than or equal to their face
value given. Client X gave me $100,000.00, in their words they wanted their money invested:
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Wisely and Profitably
Risk Tolerance is: LOW.
Client X is Concerned for:
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Absolute Return: The increase of the total dollar in the porYolio over the trading period.
Risk Adjusted Return: The return on the porYolio considering the level of risk assumed
by you, as measured by the Sharpe Ra9o.
First, I need to be transparent with myself, my manager, and most importantly, my client.
Currently I am down roughly 30% or $29,910.29. This happened due to a mul9tude of reasons,
but it mostly happened due to greed and le]ng my emo9ons get the best of me. Below is a
graph of my trading summary as well as my current holdings:
Portfolio Histroy From 1/24-5/2
10.00%
0.00%
1/24/2023
-10.00%
2/7/2023
2/21/2023
3/7/2023
3/21/2023
4/4/2023
5.29%
4/18/2023
5/2/2023
-26.64%
-20.00%
-30.00%
-40.00%
-50.00%
-60.00%
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% Return
-51.02%
As you can see up un9l April 18th,2023, my trading and porYolio management was well
and sought the best interest of my client’s.
During my all-9me high of 5.29% I was extremely close to coming within the top 3
places. Which would have allowed me to skip out on some ques9ons in my exam.
With my colleagues not far ahead of me, my inves9ng turned from safe and moderately
risky to all or nothing.
Previously my inves9ng consisted of primarily holding VOO which was a fund that
tracked the S&P 500. This is highly popular due to the high diversifica9on and low
expense ra9o. But ader much 9me in the game, I realized this fund is only good for long
term (years of holding). Ader realizing this, I sold off my VOO and then decided to take a
more “ac9ve” approach.
This ac9ve approach was working extremely well up un9l it did not. I was tracking stocks
that was soon to release earnings, since stock prices reflect interest rates and earnings.
My first stock taking this ac9ve approach was Nike, I sold them for only a mere $0.72.
With 500 shares bought and sold, ne]ng me $350($10 commission). I had a couple
stocks where I only profited around a dollar but for the equity I put in, it wasn’t enough.
I got my first hit when I Bought and sold Accenture PLC CI A (ACN 9cker symbol) The
stock basically beat earnings the days following my purchase. I nened $1463.00. I
profited $12.73 per share and I had 100 shares. During the same 9me, I did the same
technique with General Mills Inc (GIS) I cashed in $597.41.
Ader seeing this unimaginable return so quickly, I quickly liquidated my VOO in order to
have more capital for my investments.
My emo9ons ran high and soon I was close to the top performer. That’s when things
quickly took a downturn…… Even though I was making unreal gains of $262 from JPM
and other stocks, it made me feel like I couldn’t miss.
At this point I was in 6th place, and I knew I was so close to coming to the top 3. So, the
stock I bet all my money on was a leveraged stock on TESLA. I bought a 1.5X mul9plier
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stock of TESLA. With TESLA earnings coming up 1 week prior I knew this would make or
break me.
I bought 18,718 shares at $10.89 for an equity amount of $203,839.02 and the next day
earnings release and the stock fell and I sold at $10.28 with a loss of $11,417.98. This
wrecked my confidence and my trading abili9es.
Symbol Shares % Holdings Type Price Price Change Price Change % Value
Value Gain/Loss Value Gain/Loss %
PFE
50
1% BUY $38.52
-0.15
-0.39% $1,926.00
($263.85)
-12.05%
TSLL
17,167
99% BUY $9.17
-0.31
-3.27% $157,421.39
($23,432.96)
-12.96%
-These are my current holdings, I repurchased TSLL due to the hopes of it shoo9ng back up.
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