Investments: Virtual Stock Exchange

Introduction

Visual stock exchange has been instrumental in aiding the understanding of key trading strategies that facilitate effective portfolio management. Evidently, Spring-2013 is a visual trading game that is executed with the philosophy of achieving best results or returns. This explains why students should adopt quality and viable trading strategies. The strategies should be ideal to enable identification of lucrative stock portfolios and security holdings. This is essential in averting possible loses that may occur due to poor identification of stock portfolios. As noted by Sanwal (2007, p, 39), potential investors in stock markets must adopt philosophical approaches of trading. The investors should monitor the market trends in terms of performance and understand stock movements. They should also know when to buy and sell shares. This is vital since the process defines the overall outcome in terms of profit or loses.

Philosophy and Process

As noted, visual stock trading is a process that requires absolute determination and effective selection of stock portfolios. The process that is well defined must be understood appropriately by investors and students to aid positive returns. For instance, a capital of $100,000 should be invested in viable stock portfolios. The amount may yield immense returns if invested properly. Indeed, my investment portfolio has been trading under set guidelines since the start of the Spring-2013 game. The first trading session provided a major investment test to me since it required immense understanding (Heard & Jean, 2013, p, 1). However,.the philosophical guidelines that were provided facilitated the trading process that became successful at the close of business.

The guidelines facilitated my investment decision that saw me join normal trading session under growth fund portfolio instead of advanced trading session. The investment made in the game that yielded a buying power of $200,000 in the stock market was $100,000. The amount was invested in various stocks through disposal and purchasing of shares of various holdings in the market (Noonan, p, 2013, 1). Imperatively, the game’s trading board provides an effective trading card that facilitates the process of buying and selling of shares by investors. The platform also provides investors with the requisite shares balancing board that enables them to know how much an investment initiative may yield.

Portfolio Statement

Indeed, the initial amount of $100,000 that was invested was traded effectively in selling and buying to cover stock. The amount was traded in various units or stock portfolios that include Dow, Nasdaq and S&P500 where GCI, GPS, GY, GMT and KDN were used as key trading symbols. These were the stock units that were lucrative and had the potential to record good returns. They were selected under trade philosophical guidelines that ensure that either buying or selling of stocks is within the minimum limits (Noonan, p, 2013, 1). That is the range of value at which the stocks are purchased is at 5% at minimum level and 20% at the maximum level. Trading in the entire period has yielded a net worth of 997,346.45, overall return of 1.73% and buying power of $379.38. This depicts how effective the trading process has been from the initial stages of the game. A complete portfolio statement on the stocks were purchased and sold including returns is shown below

Growth fund Amount ($)
Investment (capital available for trading) 100,000
Buying power 200,000
Net worth after trading 997,346.45
Overall returns 1.73%

Traded stocks and amounts

Stock portfolios traded presented by their symbols Shares purchased Shares sold Amount
GCI 4459 @ 6 22,295
GPS 3568 @ 5 17,840
GY 5400 @ 7 37,800
GMT 5420 @5 27,100
KDM 11200 @ 5 56,000

References

Heard, A & Jean, L 2013, Analyst and Investment Reports. Web.

Noonan, P 2013, The Market Watch, Wall Street Journal, vol. 2, no. 3, pp. 1-78. Web.

Sanwal, A. K. (2007). Optimizing Corporate Portfolio Management Aligning Investment Proposals with Organizational Strategy, John Wiley & Sons, Hoboken, N.J.

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