Description
Write a 5-page summary of your investment experience using StockTrak, including your successes, failures and strategies. Be familiar with the following experiences.
- Buying at least one bond (corporate or government)
- Buying at least one stock
- Short sell at least one stock
- Buying at least one option (call or put)
- Writing at least one option (call or put)
- Buying or selling at least one futures contract
- Buying at least one mutual fund
Explanation & Answer
Please view explanation and answer below.
ASSIGNMENT
1
TITLE
Author’s name
Course name
Instructor name
Date
ASSIGNMENT
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Introduction
Stock-Trak is a leading provider of educational simulation applications to handle
stock market portfolios since 1990. After looking for numerous software for real-world
trading experience, Mark Brookshire, the founder, and CEO decided to write the application
about virtual trading for college students taking subjects in investment classes (Stock-Trak,
n.d.). He took this initiative after graduating with a master's of Science in management from
Georgia tech. The application provides university students an opportunity to manage their
portfolio comprising of stocks, bonds, and mutual funds without any need to invest the
money (Stock-Trak, n.d.).
The objective of the application is to ensure the practice of college-going students in
the stock market investment. At this stage, they do not have sufficient money to invest
because they have to manage all other expenses along with their studies. Practicing
investment in virtual applications not only increases the confidence but also helps them to
track or identify the things where they went wrong. Straightaway investing money in the
stock market without any prior experience is not a good choice because the investor will end
up losing hard-earned money. The application also provides a curriculum library offering
more than 300 lessons with quizzes to check the accuracy.
Summary
When I created when account on the Stock-Trak, I ended up purchasing numerous
stocks based on my conviction that they will increase within 6 months to 1 year. However, I
ended up losing around 23% of my capital. Although it was a virtual account and I didn't
invest a single penny of my earnings, I got to know that investing based on conviction doesn't
work because the stock market is a big pool where an investor can dive in deep only if he or
she is aware of the ways to invest in powerful stocks and bonds.
ASSIGNMENT
3
My initial journey of investment in the stock market was not good because I directly
started trading in options. Buying an option requires less capital but there are high chances of
premium decay soon after th...
