Stock Market Game Report 1

Stock Market Game Report

Fina 4200

Jacobo Kilgore

Doctor Saxena

December 2, 2015

Certificate of Authorship: I certify that I am the author of this paper and that any

assistance in its preparation fully acknowledged and disclosed in the paper. I have

also cited any sources from which I used data, ideas, words, either quoted directly

or paraphrased. I also certify that this paper was prepared by me especially for this

course.

Stock Market Game Report 2

Stock Market Game Report

The rules were to start with $100,000 and either invest it in the stock market by buying and selling stocks or I could leave the money alone in the account and let it build interest. I choose the path of obtaining greater capital through the stock market. At the beginning I had few strategies, since I was a novice, but I would obtain new strategies along the way. The way I picked my stocks evolved throughout the months changed though out the months. At the end, I had finished with a total cash value of $93,847.39, I had a loss of -$6152.61, and I managed to capitalize on my mistakes, by learning from them. Overall, it was an incredible experience being able to applying different strategies, picking and watching stocks, and learning from the aftermath.

As I begin the stock market game, I wasn’t sure on what stocks to pick. But after watching the stock market move through Yahoo! Finance, I decided on three strategies. My first one was to not hold stocks any longer than 2 days, somewhat of a day trader. The reason was simple, as a novice, I was eager to obtain experience and gain capital, so that I can learn from my mistakes now and become a better trader in the future. I decided on day trading would be efficient to learn, be involved in trading frequently, and make more money. Second strategy was to buy company shares that would have the stock price of $45 or less. That was because I had a limited amount of money and I can be more profitable by buying lower valued stock at a higher quantity. For example, the stock Arch Coal (ACI), on 08/27/15 I purchased 3000 shares at 5.55(total of $16,650), which were then sold at 6.41 (total of $19,230) on the same day, I was able to make a profit of $2,580. When compared to MSFT on the same day, I brought fewer shares at a higher cost; I obtained 500 shares at 43.32 (total of $21,660) and sold them at 43.81 (total of $21,905) leading to a profit of $245. I saw potential in making more fake money in lower valued stocks.

My third strategy was to follow my gut; I would only invest in stocks that felt right and I was confident in. If I felt that the company wasn’t great or I wasn’t confident in it, then I would not pursue it. This strategy worked when I actually researched into the company using charts and the news. For example Ferrari, when it finally became a public company, I was not confident in the company; yes it has created stunning sport cars, but something inside me said, this company is not up to par when it comes to value, based on a comparison to other car companies, I decided to not invest in it and I was correct. On its first day, it began at $55 per share, made a quick jump to $60, then started to decline, and now it is at $46 per share.

As a technical analysis, I begin selecting my choice of stocks based on charts. I begin selecting stocks based on the “most active” that Yahoo listed. I used the Yahoo! Finance charts to examine the stocks, which I would look at them by the day, week, month, and year. By doing so, I would attempt to see if I can find a trend and then decide whether to invest, continue watching it, or not invest in it. Looking at charts by themselves was not efficient, which I then started reading the news articles relative to the company on Yahoo, this helped give me insight on the company performance and previous events. When I finally received my Wall Street Journal subscription, I decided to read the articles and see if I can get a company from it. One company that I came across from reading was Sprint (S). Late October, there was a news article on the new Sprint CEO, Marcelo Claure, and how he managed to turn around a previous company called Brightstar from turmoil to a huge company that has become successful. I read the article on the 10/27/15 before the market opened. I did wait a bit to examine the chart, and then brought it at 9:47am. On that trade, I didn’t make a profit (loss of $8) due to holding the stock to long, but I did learn that Sprint had

08/27/2015 09:33 AM Market - Buy 3000 ACI 5.55 -16,650.00 Profit

08/27/2015 10:30 AM Limit - Sell 3000 ACI 6.41 19,230.00 $2,580

08/27/2015 09:39 AM Market - Buy 500 MSFT 43.32 -21,660.00 Profit

08/27/2015 11:55 AM Limit - Sell 500 MSFT 43.81 21,905.00 $245

Stock Market Game Report 3

potential to be a better company based on the news that I read. Along with that, I learned the value of reading the news, especially the Wall Street Journal, in relations to the stock market. I do plan to continue watching Sprint’s performance. Later on, I realized that some of the news that I would read was actually not useful, because some stocks would have their hype from the news announcement before the market opening and when it came to 9:30am, the hype would be over and there wouldn’t be an opportunity to invest since it would be stabilizing from the news. I then came across a financial website that provided news that was relative to the stock market, known as MarketWatch.com. They had a section where you can see the most recent news. At this point, I began ignoring my strategies such as investing in companies with stock price less than $45. With the recent news section of Market Watch, I read about how Oscar Munoz, CEO of United Continental Holdings (UAL), had a heart day on the 15 of October. The stock did drop from $60 to $52 based on the news. I decided to further watch it out of curiosity. I ended up investing in it on the next day, on the belief that a strong company like UAL couldn’t possibly continue going a negative direction. It worked, I was able to make a profit of $352, I still continue watching this company, because the company is being run by a temporary leader, the current CEO will return to work during the beginning of 2016, which could lead to more good news.

10/16/2015 02:51 PM Market - Buy 600 UAL 55.92 -33,552.00 Profit10/19/2015 10:11 AM Limit - Sell 600 UAL 56.51 33,906.00 $352

It was difficult for me to buy stocks, not being able to know when was the best time to buy, for example UAL, I could have invested when it was around 52, 53, or 54 dollars, but I was late to react and invested at 55.92; I missed out on profit. Form this situation I learned that even if a company may have bad news, I would need to figure out, if it is a major or minor event. As an investor, the heart attack news is minor, because the company will continue running without a CEO. The board of directors will also have to step in and find a solution to help the company move on. Major news would be like of Volkswagen’s dishonesty; in this scenario, I would not consider buying stocks in Volkswagen any time soon. Volkswagen will be scarred for a while, I would not feel confident to invest in it, until the emission problem is solved. I learned that I did not follow my original strategies, I failed in buying stocks only $45 dollars and below. I did not always follow my gut and the reason was that I became desperate to make huge profits in order to recover from my losses. From this, I learned that, I should write down my strategies or game plan and stick to them, so that I don’t lose my direction on obtaining knowledge. Another strategy that I learned is called, “no double dipping” (I personally named it); I will not buy the same stock twice on the same day. My example is Marriot International Inc. (MAR), on the first buy-sell trade, I made a profit of $287. This gave me the false confidence that I was doing well, even though I had recently suffered some minor losses. An hour later, I decided to buy into the same stock and ever since the stock did not recovered for me. I ended up with a loss of $1,221

11/17/2015 10:24 AM Limit - Buy 700 MAR 73.26 -51,282.00 Profit11/17/2015 12:10 PM Market - Sell 700 MAR 73.67 51,569.00 $28711/17/2015 01:16 PM Limit - Buy 700 MAR 73.57 -51,499.00 Profit11/25/2015 08:00 AM Market - Sell 700 MAR 71.84 50,278.00 $(1,221)

Stock Market Game Report 4

Stock Market Data (277 trades)

Date/Time Buy/Sell Quantity Symbol Price Total Cost11/25/2015 08:00AM Market - Sell 700 MAR 71.84 50,278.0011/24/2015 02:36 PM Market - Sell 1000 S 3.81 3,810.0011/24/2015 02:31 PM Market - Sell 1000 F 14.55 14,550.0011/17/2015 01:16 PM Limit - Buy 700 MAR 73.57 -51,499.0011/17/2015 12:10 PM Market - Sell 700 MAR 73.67 51,569.0011/17/2015 10:54 AM Market - Sell 2000 LEI 2.45 4,900.0011/17/2015 10:24 AM Limit - Buy 700 MAR 73.26 -51,282.0011/11/2015 01:58 PM Stop - Sell 400 V 79.9 31,960.0011/10/2015 12:15 PM Limit - Sell 500 SNE 28 14,000.0011/06/2015 09:55 AM Market - Buy 500 SNE 27.97 -13,985.0011/06/2015 09:36 AM Market - Buy 400 V 79.45 -31,780.0011/03/2015 11:48 AM Market - Sell 700 V 78.05 54,635.0011/03/2015 11:16 AM Market - Buy 1000 S 4.57 -4,570.0011/03/2015 11:13 AM Stop - Sell 1000 S 4.56 4,560.0011/03/2015 09:37 AM Market - Buy 1000 S 4.41 -4,410.0011/02/2015 03:30 PM Market - Sell 200 S 4.87 974.0011/02/2015 10:33 AM Stop - Sell 200 CTCT 31.91 6,382.0011/02/2015 09:52 AM Market - Buy 200 CTCT 31.77 -6,354.0011/02/2015 09:46 AM Market - Buy 200 S 4.81 -962.0010/30/2015 03:11 PM Market - Buy 200 V 77.79 -15,558.0010/30/2015 02:14 PM Market - Sell 300 SNE 28.54 8,562.0010/30/2015 01:33 PM Market - Sell 500 NNI 35.94 17,970.0010/29/2015 10:50 AM Stop - Sell 502 LOCK 14.22 7,138.4410/29/2015 09:52 AM Market - Buy 502 LOCK 13.46 -6,756.9210/29/2015 09:36 AM Market - Buy 300 SNE 28.24 -8,472.0010/27/2015 11:51 AM Market - Sell 2000 S 4.84 9,680.0010/27/2015 11:00 AM Market - Buy 2000 S 4.77 -9,540.0010/27/2015 10:40 AM Market - Sell 1500 S 4.82 7,230.0010/27/2015 09:48 AM Market - Buy 500 V 78.04 -39,020.0010/27/2015 09:47 AM Market - Buy 1000 F 15.03 -15,030.0010/27/2015 09:47 AM Market - Buy 1500 S 4.73 -7,095.0010/27/2015 09:41 AM Market - Buy 500 NNI 35.94 -17,970.0010/23/2015 03:33 PM Market - Sell 516 V 77.07 39,768.1210/23/2015 11:06 AM Market - Sell 1180 FITB 19.05 22,479.0010/22/2015 01:23 PM Market - Buy 1000 FITB 18.84 -18,840.0010/22/2015 11:10 AM Market - Sell 1500 CHLN 5.05 7,575.0010/22/2015 11:07 AM Market - Sell 301 SNE 28.71 8,641.7110/22/2015 10:36 AM Market - Buy 1500 CHLN 5.6 -8,400.0010/22/2015 10:29 AM Market - Sell 2000 WWE 19.18 38,360.0010/22/2015 10:25 AM Market - Buy 301 SNE 28.69 -8,635.69

Stock Market Game Report 5

10/22/2015 10:21 AM Market - Buy 516 V 76.52 -39,484.3210/22/2015 10:19 AM Stop - Sell 3000 JAGX 2.03 6,090.0010/22/2015 09:58 AM Market - Sell 599 UAL 54.96 32,921.0410/22/2015 09:53 AM Market - Sell 708 RMBS 10.46 7,405.6810/20/2015 11:29 AM Market - Buy 708 RMBS 10.34 -7,320.7210/20/2015 11:22 AM Market - Sell 501 WTW 18.09 9,063.0910/20/2015 10:33 AM Market - Buy 501 WTW 17.8 -8,917.8010/20/2015 09:50 AM Market - Sell 5000 ARCW 1.91 9,550.0010/20/2015 09:44 AM Market - Buy 180 FITB 18.97 -3,414.6010/19/2015 11:41 AM Limit - Sell 160 ANF 21.35 3,416.0010/19/2015 11:25 AM Market - Buy 599 UAL 56.76 -33,999.2410/19/2015 11:00 AM Market - Sell 599 UAL 56.71 33,969.2910/19/2015 10:25 AM Limit - Buy 599 UAL 56.49 -33,837.5110/19/2015 10:11 AM Limit - Sell 600 UAL 56.51 33,906.0010/19/2015 09:54 AM Market - Buy 160 ANF 21.33 -3,412.8010/16/2015 02:51 PM Market - Buy 600 UAL 55.92 -33,552.0010/15/2015 11:18 AM Market - Sell 2000 KEY 13.3 26,600.0010/15/2015 10:52 AM Market - Sell 358 SCHW 28.36 10,152.8810/15/2015 09:47 AM Market - Buy 2000 KEY 12.97 -25,940.0010/15/2015 09:34 AM Market - Buy 358 SCHW 28.06 -10,045.4810/13/2015 12:44 PM Market - Buy 2000 WWE 20.51 -41,020.0010/13/2015 10:14 AM Limit - Sell 2500 TWTR 30.19 75,475.0010/13/2015 09:54 AM Market - Buy 2500 TWTR 29.28 -73,200.0010/12/2015 11:47 AM Limit - Sell 2000 MAT 22.87 45,740.0010/12/2015 10:39 AM Market - Buy 2000 MAT 22.72 -45,440.0010/12/2015 09:50 AM Market - Sell 466 EROS 30.86 14,380.7610/08/2015 01:10 PM Market - Sell 3760 USO 15.92 59,859.2010/08/2015 12:01 PM Market - Sell 20 EMC 27.23 544.610/08/2015 09:53 AM Market - Buy 20 EMC 26.57 -531.410/06/2015 09:40 AM Market - Buy 466 EROS 29.93 -13,947.3810/05/2015 03:02 PM Limit - Sell 754 WWE 18.01 13,579.5410/05/2015 12:19 PM Market - Buy 754 WWE 17.67 -13,323.1810/05/2015 10:42 AM Market - Sell 449 PLUG 2.17 974.3310/05/2015 09:42 AM Market - Sell 1218 JCP 10.02 12,204.3609/28/2015 10:37 AM Market - Buy 1218 JCP 9.56 -11,644.0809/28/2015 10:32 AM Limit - Sell 482 VXX 26.51 12,777.8209/22/2015 09:44 AM Market - Buy 449 PLUG 2.16 -969.8409/17/2015 11:24 AM Market - Buy 5000 ARCW 2.74 -13,700.0009/15/2015 09:47 AM Market - Buy 482 VXX 25.65 -12,363.3009/15/2015 09:46 AM Market - Sell 2116 AST 5.49 11,616.8409/14/2015 11:03 AM Limit - Sell 1150 JCP 9.86 11,339.0009/10/2015 09:35 AM Market - Buy 1150 JCP 9.61 -11,051.5008/31/2015 02:30 PM Market - Buy 3760 USO 16.11 -60,573.60

Stock Market Game Report 6

08/31/2015 01:35 PM Limit - Sell 2706 VXX 26.83 72,601.9808/31/2015 12:12 PM Limit - Buy 2116 AST 5.3 -11,214.8008/31/2015 11:53 AM Market - Buy 2000 LEI 2.88 -5,760.0008/31/2015 11:40 AM Limit - Sell 1746 JCP 9.27 16,185.4208/31/2015 10:25 AM Market - Buy 1746 JCP 9.2 -16,063.2008/31/2015 10:23 AM Market - Buy 2606 VXX 26.56 -69,215.3608/31/2015 09:43 AM Market - Sell 3000 JCP 9.13 27,390.0008/31/2015 09:40 AM Market - Sell 3000 USO 14.64 43,920.0008/31/2015 09:33 AM Market - Sell 3000 BTU 2.41 7,230.0008/31/2015 09:33 AM Market - Buy 100 VXX 26.03 -2,603.0008/31/2015 09:33 AM Market - Sell 1386 ACI 7.79 10,796.9408/28/2015 11:05 AM Market - Buy 1386 ACI 7.97 -11,046.4208/28/2015 11:02 AM Market - Buy 3000 USO 14.58 -43,740.0008/28/2015 10:58 AM Market - Buy 3000 BTU 2.51 -7,530.0008/28/2015 09:39 AM Market - Buy 3000 JCP 8.53 -25,590.0008/27/2015 01:52 PM Market - Sell 3000 LOOK 1.49 4,470.0008/27/2015 01:32 PM Market - Sell 3000 ACI 6.79 20,370.0008/27/2015 01:25 PM Market - Buy 3000 LOOK 1.63 -4,890.0008/27/2015 01:01 PM Limit - Sell 2000 BAC 16.4 32,800.0008/27/2015 11:55 AM Limit - Sell 500 MSFT 43.81 21,905.0008/27/2015 11:29 AM Market - Sell 1000 VALE 4.76 4,760.0008/27/2015 11:10 AM Market - Buy 3000 ACI 7.15 -21,450.0008/27/2015 10:42 AM Market - Buy 3000 JAGX 4.33 -12,990.0008/27/2015 10:30 AM Limit - Sell 3000 ACI 6.41 19,230.0008/27/2015 09:39 AM Market - Buy 500 MSFT 43.32 -21,660.0008/27/2015 09:33 AM Market - Buy 3000 ACI 5.55 -16,650.0008/27/2015 09:32 AM Limit - Sell 5000 VALE 4.71 23,550.0008/25/2015 03:57 PM Market - Buy 1000 VALE 4.29 -4,290.0008/25/2015 10:30 AM Market - Buy 2000 BAC 16 -32,000.0008/25/2015 10:26 AM Market - Buy 5000 VALE 4.5 -22,500.00