Experience For Invest In Stock

Published Date: 02 Nov 2017

Student Name:Ying Ruyao :

Student ID: 1005006721 :

Matriculation No. :20048157

Date : 15-04-2013

Word Count: 1412 :

1.Introduction

This report illustrate portfolio construction and performance, and the first part analyse our group funds performance; The second part analyse performance of individual funds; The third part comparison of the group stock and individual stock; and the next part is most importance, because that will sum up mistake and success during this invest. The requirement of this theme is as a team we have $100,000,000 to invest across a minimum of 10 equities holdings and a maximum of 10.

We started on March 12, and I bought 10 stocks from the stock market, they include ASJ holdings and Frencken Group;Baker Technology Ltd;k1 Ventures Limited ;Singapore Exchange Limited.;Capitamall Trust ;Ying Li International Real Estate Ltd.;Ezra hlodings Limited and STX OSV holdings Ltd and Armarda Group. According to the request, every student needs to use $100,000,000 for investing 10 companies’ holdings and do the Virtual stock trading based on the stock-market.

2.Analysis the performance of our group funds

We basic cost is $100,000,000 and invest 10 companies in 04 March, we collect whole data during this 4 weeks and we notice that we had earned profit about $6,836,425.42 on 8 April 2013. We had successfully choose some stocks and also make some mistake to lose the money. The most profit that we earned is Stratech System. Although it is only increase 0.01, it bring a lot of profit because we had buy it by using 15% of 100,000,000.t is able to improve our outlook for the investment and more understanding the way of invest.The market value is 0.1% and Annualized profit is 2.88% to according the data.

Dividend received , Stratech: 648.0;

Dividend received, Genting : 0.5;

Dividend received,Straco: 7.9

Dividend received, CapitalMall trust: 1.6;

Dividend received, City Development Limited: 0.1;

Dividend received,Sembcorp:0.6

Dividend received, Breadtalk: 1.1

Dividend received, Sheng shiong: 6.2

Dividend received Thai Beverage Ltd: 0.60

Dividend received Kellogg Company:0.0

Even though we have bought and sold in the right moment, the risk that we taken were high. What if the stock price of Stratech System is in the state of decrease, our profit will going to loss.

In short, the total market value is $110,745,720.32 and the total profit that we earn is $6,836,425.42.

Analysis the performance of my individual funds

Table of my individual funds

Stocks

Bid Price/$

Entry

Date

Cost

$

Present Date

Stock

Price/$

Market

Value/$

Profit/Loss

$

Armarda Group

0.028

04/03/2013

10,000,000

04/03/2013

0.02

7,139287.5

-0.71392875

ASJ holdings

0.065

04/03/2013

10,000,000

04/03/2013

0.07

10,763,848.84

763,848.84

Frencken Group

0.2

04/03/2013

10,000,000

04/03/2013

0.1920

9,595,202.399

-404,797.601

Baker Technology Ltd

0.41

04/03/2013

10,000,000

04/03/2013

0.45

10,970,124.69

970,124.69

k1 Ventures Limited

0.175

04/03/2013

10,000,000

04/03/2013

0.16

9,138,287.999

-861,712.001

Singapore Exchange Limited

7.46

04/03/2013

10,000,000

04/03/2013

7.66

10,262,965.03

262,965.03

CapitaMall

2.1

12/03/2013

10,000,000

09/04/2013

2.20

10,470,955

470,955

YingLi International Real Estate Ltd

0.46

04/03/2013

10,000,000

04/03/2013

0.50

10,864,133.15

864,133.15

Ezra hlodings Limited

0.89

04/03/2013

10,000,000

04/03/2013

0.87

9,779,395.701

-220,604.299

STX OSV holdings Ltd.

1.25

04/03/2013

10,000,000

04/03/2013

1.22

9,755,122.439

-224,877.561

total

100,000,000

98,759,322.75

-1,240,677.252

During this form, it can show there are 5 companies are lose which are Frencken Group,k1 Ventures Limited ,Ezra hlodings Limited,STX OSV holdings Ltd and Armarda Group. Another 5 groups keep profit now, which are ASJ holdings,Baker Technology Ltd,Singapore Exchange Limited.; Capitamall Trust and Ying Li International Real Estate Ltd. Through calculation, total market value is $98,759,322.75, but my cost only have 100,000,000, so I lose $1240,677.252,After calculating I can easy to get the data for one month return rate, that is -1.24%, and Annualized Fund Return is -13.9%.The most loss that is k1 Ventures Limited, this company let me loss $861,712.001; but baker Technology Ltd let me earned $970,124.69, but still cannot filling loss, so I think sell it as soon as possible, because this stock have been unstable. Armarda Group and ASJ holdings not sell temporary, because the prices of these three shares regress to the initial bid price at the end of week 4. And I think observes them first will be better. Among them, Armarda group loss is lease, because just differ $0.008 between bid price and stock price, in the future might will be rise.

Comparison of the group stocks and individual stocks

Group had earned profit about $6,836,425.42 on 8 April 2013, but I loss about $1,240,677.252, absolutely group’s decisions is correct. The profit that earned by Stratech System is $7,488,750, even though the stock is only increased from 0.2 to 0.3. Group stocks are:Stratech System, Straco, CapitaMall trust, City Development Limited, Sheng Siong and Kellogg Company, Thai Beverage Public Company Limited, Breadtalk, Semb Corparation and Genting, of which Thai Beverage Public Company Limited, Breadtalk, Semb Corparation and Genting had make loss, and group market value is 0.1%, I just have -1.24% only, and my stocks total loss about $-1,240,677.252, and the total market value about $98,759,322.75, as a result, how to make a correct decision on investment is significant.

4.Analysis and discuss the effects of my shares to the group (include mistakes and successes of your stock in groups, should more of your share been included, and some suggestions)

We recorded the data and analyzed and calculated. Following the monitoring, we analysis the performance of our group funds in last four weeks. From these data, we can understand the profit and loss of the stock.

I think I have to sell rencken Group,k1 Ventures Limited ,Ezra hlodings Limited,STX OSV holdings Ltd and Armarda Group as soon as possible, because I will loss more cost if I still holding them, and In my opinion I can buy Capitamall Trust and Singapore Exchange Limited stock some more, because according to my observe,Capitamall Trust and stock keep increase steady, although grow up slightly and I think it can be long term stock. I think my mistake are:1.Too Short of a Time Horizon,almost investors are too focused on the short term, and I too;2.Not Enough Indexing:There is not enough time to read or research many of the studies that prove that most managers and mutual funds underperform their benchmarks. Therefore, absorb knowledge or some newspapers are quite important;

5.Experience for invest in stock:

1) Take the time to learn how to invest correctly. Buy some investment books. This could take awhile, but regardless!

2) Make a clear decision on when you're going to invest.

3) Decide, or develop what type of investing strategies you're going to be using.

4) Decide which stock you're going to use.

5) Think about what tools you're going to need (chart programs, portfolio software, etc.) to best invest your chosen strategy.

6) Once you've decided on which tools you need, take some time to choose which provider will best fill those needs.

7) Fund the investment account you have chosen. (Tip: Only use money you can afford to lose)

8) Have a method or program in place to track the trades you're going to be making and a way of keeping trading notes. (Tip: If you don't keep track of what you've done, you will forget. When you forget, you don't learn from your mistakes and successes. A trading journal is very important)

conclusion:

"No pain, no gain." You must weigh the potential reward against the risk of an investment to decide if the "pain is worth the potential gain." Understanding the relationship between risk and reward is a key piece in building your personal investment philosophy.(Ken Little 2013)

Investment stocks is a risky business. There are some risks you could not control and others that you can only guard against.Thoughtful investment selections that meet your goals and risk profile keep bond risks and individual stocks keep at an acceptable level.Through this time of the stock investment, we can know everybody buying and selling stocks is always expect to earnings. No one can choice a earning stock forever, so invest stock has been risk. However, other risks are inherent to investing you have no control over. Most of these risks effect the market or the economy and require investors to adjust portfolios or ride out the risk.