Stock Trading Journal: Guide to Tracking Trades

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Executive Summary

The use of technological manifesto for trading is one of the expansions in modern advancement. Through the arising of the internet, trading has developed a lot from direct transfers at which point trading became effortless and convenient. Virtual Stock Trading became an indicator with regards to assiduity and creativity by means of planning and constructing strategies.

This journal will encourage the student to learn more about virtual stock trading. This journal will exemplify their knowledge in trading ability in the absence of any form of real money.

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In addition, virtual stock trading permits students to explore new trading plan and strategies without having any possibility of loss.

This journal will tell the reader the experience of the student who engaged in virtual trading that gains new knowledge and skills that may require on daily living and may help the reader to be inspired to invest early and be knowledgeable on how to trade stocks with the use of basic skills and strategies in this journal.

Introduction

History has demonstrated that investing in stocks over the long-term dispenses greater returns and protection against inflation (The Philippine Stock Exchange, Inc., 2003). The stock market today, specifically in the Philippines experiences a price fluctuation due to the fact that the economy of the Philippines is growing. Now, the challenge for the students is to come up with a more precise trading plan and strategies in the absence of any possibility of loss.

The student's strategy is to purchase stocks of firms that are thriving these days.

And as soon as the price increases, the student will sell the purchased stocks immediately so that the student will gain profit. The students believe that 'Patience is a virtue' which incorporates the idea that dealing with stocks needs patience since the price is always changing.

Knowing the risks of buying or selling stocks will help the students to minimize the risk or the loss of stocks. Moreover, it affects the students by not buying overvalued stocks. The initial expectation of the stocks that the student purchase will increase and definitely attain a great profit.

The three investment strategies that are going to be useful in studying virtual stocks trading are 1.) Buy and Hold strategy wherein the students believe that investing in stocks and saving them for a long duration of time can give them reasonable returns in spite of the erratic characteristics of short-term periods. 2.) Technical Analysis is an investment strategy that focuses on the use of charts to acknowledge current price patterns and market trends for the purpose of forecasting future patterns and trends. 3.) Growth Investing is about reflecting what firms, consumers, and investors are all doing at the same time in thriving companies and gaining higher expectations of future growth of the stocks (Thune, 2019).

Analysis

The student chooses the stocks because it is from a well-known company and their stocks drastically increase from time to time and the price does not drop simultaneously. According to Xi (2013), the stock is conservative since the plan tends to benefit lower risk and income generation.

The stocks purchased were (PIP) Pepsi - Cola Products Philippines, Inc., Cebu Air Inc. (CEB), BDO Unibank Inc. (BDO), Petron Corporation (PCOR), SM Prime Holdings Inc. (SMPH). The table below shows the current stock classification of the purchased stocks to different companies.

-1841575438000The student best-performing stocks is Pepsi-Cola Products Philippines, Inc. with an ROI of 3.82%

The student's least performing stock is SM Prime Holdings, Inc. with an ROI of -2.30%.

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In the case of the best performing stock, the student did sell the stocks because it has a large profit in it and the student predict that the price of the stock will drastically fall. However, in the least performing stock, the student sell it because the price of the stock continuously fall after the student purchases the stock and the next few days it will still fall.

Conclusions and Findings

Virtual Trading is like a game which we risk in order to gain profit, however, you may lose some of it too but still, loss is a gain in experience which you may profound and strengthen the basic skill of virtual trading and make use of it in the next trade you will make. The student trade was at a partial loss of 1,169.20 but still gain knowledge on what to do next. Decision making, being observant and have more patience is quite useful in virtual trading and if you strengthen this basic skill it may help you to be more efficient on virtual trading.

CHARTS/DIAGRAMS OF PORTFOLIO PERFORMANCE

RETURN ON INVESTMENT OF INDIVIDUAL STOCK

Summary of Stocks

STOCK BUY TF PRICE (1) SELL PRICE(2) ROI DIVIDEND YIELD

PIP 6960 90.86 1.74 7320 1.83 3.82% 2.53%

CEB 9440 114.26 94.40 9655 96.55 1.05% 5.30%

BDO 14750 177.14 147.50 14930 149.30 0.02% .20%

PCOR 3060 64 5.10 3048 5.08 2.43% 1.96%SMPH 11745 138.56 39.15 11610 38.70 2.30% .89%

The table above shows the basis for determining the best to the least performing stock. The data show that the best performing stocks is Pepsi-Cola Products Philippines, Inc. with an ROI of 3.82% and the least performing stocks is SM Prime Holdings, Inc. with an ROI of -2.30%.