Share Market Report Assignment

8/8/2019 Share Market Report Assignment

1/18

Marist College Ashgrove

09

THE SHAREMARKET GAME The Purple Dragons

By Matthew Broadley


2/18

1. 0 Introduction

1.1 Aim of ReportThe aim of t he r ep ort is to p r e se nt t he knowl e dg e and und e rstandings gain e d from

r e c e nt S h ar e mark e t Gam e .

1.2 Sources of Information

The sourc e s of information for t h is r ep ort includ e bot h p rimary and s e condary sourc e s

The p rimary sourc e s of information includ e the first h and expe rie nc e s of m e mb e rs

p artici p ating in t he Sh ar e mark e t gam e .

The se condary sourc e s of information includ e a wid e rang e of w e bsit e s, tex tbooks and

e le ctronic p ublications

1.3 Scope of report

This r ep ort is limit e d to t he inv e stigation of t he Sh ar e mark e t gam e he ld from 5t h of

Marc h to 13 May 2009

2 .0 Ov e rvie w of t he Sh ar e mark e t gam e

The aim of t he sh ar e mark e t gam e is to d e ve lop stud e nts knowl e dg e of h ow t he

sh ar e mark e t works . The stud e nts ar e abl e to buy and s e ll sh ar e s to giv e the m an id e a of

the way t h at t he r e al s h ar e mark e t works .


3/18

The way it works is t h at e ac h grou p is giv e n $50,000 wort h of p lay mon e y and can inv e st

th is onlin e using an onlin e trading syst e m, w he r e you ty pe in t he amount of s h ar e s th at

you want and t he n it giv e s the m to you . Eac h grou p h as a p ortfolio w h ic h k eep s r e cord

of all t he grou p s buying and s e lling of t he ir sh ar e s. It also t e lls the grou p: h ow muc h

mon e y t he y h av e in h and, h ow muc h mon e y the y h av e inve ste d in s h ar e s and, h ow

muc h mon e y t he y h av e ov e rall (Sh ar e s & In Hand)

3. 0 Trading Plan

3.1 Investment Strategy

An inv e stm e nt strat e gy is d e fine d as an inv e stors p lan of distributing ass e ts among

various inv e stm e nts, taking into consid e ration suc h factors as individual goals, risk

tol e ranc e and h orizon (Inv e stor Words 2009)

Whe n inv e sting in t he sh ar e mark e t t he r e is e ithe r a long t e rm or s h ort t e rm a pp roac h

th at can b e a pp lie d . A long t e rm inv e stm e nt a pp roac h is to buy and h old w h ic h is a

p assiv e inve stm e nt strat e gy t h at bas e d on t he p r e mis e th at t he sh ar e p rice will rise ov e r

a pe riod of tim e . (Financial W e b 2009) A s h ort t e rm strat e gy is s h ot Te rm Trading w h ic h

is whe r e the inve stor buys a s h ar e at t he low e st p ossibl e p rice and s e lls it whe n it g e ts to

the h ighe st p ossibl e p rice .

Our grou p , the Pur p le Dragons, us e d a mi xtur e of bot h of t he se strat e gie s. We us e d

buying and h olding for t he c he a pe r sh ar e s. The grou p boug h t som e sh ar e s around t he

two dollar mark and he ld onto t he m . This p rov e d a good strat e gy consid e ring ov e r

$1 000 was mad e in th is p roc e ss.

The ot he r strat e gy t h at w e us e d was s h ort t e rm trading . Wh ic h we use d wit h the mor e

expe nsive sh ar e s. The grou p boug h t sh ar e s and t he n he ld on to t he m for a s h ort

amount of tim e , in ord e r to mak e a small p rofit, in a small amount of tim e


4/18

3.2 Portfolio Diversification

As d e fine d by ASX (2008, p . 31 ), p ortfolio div e rsification is t he p rinci p le of r e ducing risk

by s p r e ading funds across a numb e r of diff e r e nt s e curiti e s or ass e t class e s, as loss e s in

on e inve stm e nt may b e offs e t by gain in anot he r .

As stat e d by ASX (2008, p . 31 ), t he div e rsification of inv e stm e nts across a numb e r of

ar e as e nabl e s you to r e duc e the risk of losing your h ard e arn e d mon e y .

3.3 Trading Decisions

Trading d e cision ar e d e fine d by Inv e sto pe dia (2009) as A m e th od of e valuating a

se curity by att e m p ting to m e asur e its intrinsic valu e by ex amining r e lat e d e conomic,

financial and ot he r qualitiv e and quantativ e factors . Our grou p d e cid e d to inv e st inc he a p sh ar e s so w e we r e abl e to buy a lot of t he m . For ex am p le: we boug h t 2000

sh ar e s in Custom e rs Limite d at $ 1. 90 a s h ar e , w he n t he sh ar e valu e jum pe d to $2 w e

gain e d $ 1 000 . We also always r e se arc he d t he sh ir e in qu e stion b e for e buying so w e

kn e w w h at t he sh ar e valu e was lik e ly to do . So w he n w e boug h t BHP sh ar e s, w e saw

th at t he y go u p and down in almost e ve n int e rvals, so w e sold it w he n it was h igh and

boug h t it back w he n it was low .

As d e fine d by ASX (2009 p 11 0) .Te c h nical analysis is t he study if t he p ast p rice smov e m e nts of an individual s h ar e or t he mark e t as a w h ole to gain an insig h t into

whe r e the p rice mig h t go . We us e d t e c h nical analysis by looking at t he c h arts of t he

com p ani e s th at s ee m e d to b e going w e ll. If we saw t h at it h ad just start e d to go down

we would s e ll it. And if w e saw t h at it was just starting to go back u p , w e would buy it .


5/18

4 .0 Sh ar e mark e t Gam e Re sult

5 .0 Re vie w of Trading Plan

6 .0 Conclusion

7 .0 Re fe r e nc e s


6/18

8 .0 A ppe ndic e s

8 .1 Portfolio and Trading Statement at Close of Game

Cash on hand $19.88

Share holding value $51,576.74

Total portfolio worth $51,596.62

Code Holding Current value Close of day price

BHP 300 $10,329.00 $34.43

OSH 600 $3,120.00 $5.20

QBE 44 $909.04 $20.66

CUS 4594 $9,877.10 $2.15

STO 330 $4,775.10 $14.47

CBA 100 $3,674.00 $36.74

LNN 100 $1,165.00 $11.65

BEN 500 $3,450.00 $6.90

LGL 300 $930.00 $3.10

ASX 350 $11,427.50 $32.65

IRE 300 $1,920.00 $6.40


7/18

Trading statement

Type Code Tradevalue

TradeQty

Tradeprice

Brokerage Transaction time

BUY QBE -$945.64 44 $20.81 $30.00 Wed, 13 May 200912:03:26 PM AEST

BUY CUS -$2,130.00 1,000 $2.10 $30.00 Tue, 05 May 200911:31:01 AM AEST

SELL BWP $143.50 -100 $1.74 $30.00 Tue, 05 May 200911:26:37 AM AEST

SELL AOE $150.50 -50 $3.61 $30.00 Tue, 05 May 200911:20:02 AM AEST

BUY CUS -$30.00 15 $2.00 $0.00 Thu, 30 Apr 200912:08:50 PM AEST


BUY BHP -$10,005.00

300 $33.25 $30.00 Thu, 30 Apr 200912:06:41 PM AEST





BUY CUS -$434.00 217 $2.00 $0.00 Thu, 30 Apr 2009


8/18

12:05:17 PM AEST

BUY CUS -$4,190.00 2,095 $2.00 $0.00 Thu, 30 Apr 200912:05:17 PM AEST

SELL CUS $8,273.07 -3,978 $2.08 $1.17 Mon, 27 Apr 200915:17:45 PM AEST

SELL CUS $2,024.46 -978 $2.07 $0.00 Mon, 27 Apr 200915:15:09 PM AEST

SELL CUS $45.76 -22 $2.08 $0.00 Mon, 27 Apr 200915:15:09 PM AEST




SELL CUS -$5.16 -12 $2.07 $30.00 Mon, 27 Apr 200914:55:42 PM AEST

BUY CUS -$3,518.00 1,600 $2.18 $30.00 Mon, 27 Apr 200910:02:25 AM AEST

BUY CUS -$4,142.00 1,900 $2.18 $0.00 Mon, 27 Apr 200910:02:25 AM AEST

SELL BHP $6,607.39 -205 $32.25 $3.86 Fri, 24 Apr 2009 12:26:15PM AEST

SELL BHP $32.25 -1 $32.25 $0.00 Fri, 24 Apr 2009 12:26:15PM AEST



9/18


SELL BHP $32.26 -1 $32.26 $0.00 Fri, 24 Apr 2009 12:26:03

PM AEST



BUY ASX -$1,020.36 33 $30.92 $0.00 Wed, 22 Apr 200912:07:18 PM AEST

BUY ASX -$9,154.79 296 $30.92 $2.47 Wed, 22 Apr 200912:07:18 PM AEST

BUY ASX -$339.20 10 $30.92 $30.00 Wed, 22 Apr 200912:07:17 PM AEST



BUY BHP -$10,980.84

350 $31.28 $32.84 Wed, 22 Apr 200912:05:41 PM AEST

SELL ASX $3,032.07 -99 $30.93 $30.00 Tue, 21 Apr 200916:10:14 PM AEST

SELL ASX $8,531.88 -276 $30.93 $4.80 Tue, 21 Apr 200916:10:14 PM AEST

SELL BHP $11,131.51 -350 $31.90 $33.50 Tue, 21 Apr 200910:00:57 AM AEST

BUY BHP - 350 $33.20 $34.86 Tue, 14 Apr 2009


10/18

$11,654.86 10:00:26 AM AEST

DV OSH $24.00 600 $0.04 $0.00 Thu, 09 Apr 200905:48:01 AM AEST

SELL BHP $11,469.99 -350 $32.87 $34.51 Tue, 07 Apr 200915:02:23 PM AEST

SELL TOL $898.50 -150 $6.19 $30.00 Mon, 06 Apr 200910:10:23 AM AEST

SELL TTS $31.20 -12 $2.60 $0.00 Mon, 06 Apr 200910:09:40 AM AEST

SELL TTS $1,238.80 -488 $2.60 $30.00 Mon, 06 Apr 200910:09:39 AM AEST

BUY OSH -$925.75 175 $5.29 $0.00 Mon, 06 Apr 200910:07:20 AM AEST

BUY OSH -$691.25 125 $5.29 $30.00 Mon, 06 Apr 200910:07:17 AM AEST

BUY BHP -$2,057.45 64 $32.09 $3.69 Wed, 01 Apr 200912:50:50 PM AEST

BUY BHP -$96.24 3 $32.08 $0.00 Wed, 01 Apr 200912:50:45 PM AEST






11/18


BUY BHP -$128.32 4 $32.08 $0.00 Wed, 01 Apr 2009

12:50:40 PM AEST

BUY CUS -$730.48 397 $1.84 $0.00 Tue, 31 Mar 200913:18:17 PM AEST











BUY CUS -$70.48 22 $1.84 $30.00 Tue, 31 Mar 2009


12/18

12:42:45 PM AEST

BUY BEN -$4,070.00 500 $8.08 $30.00 Tue, 31 Mar 200912:30:01 PM AEST

SELL BHP $11,511.86 -350 $32.99 $34.64 Mon, 30 Mar 200912:39:19 PM AEST

BUY TTS -$1,410.00 500 $2.76 $30.00 Fri, 27 Mar 2009 14:31:27PM AEST

SELL CPU $3,478.00 -400 $8.77 $30.00 Fri, 27 Mar 2009 14:29:42PM AEST

BUY BHP -$5,100.00 150 $33.80 $30.00 Thu, 26 Mar 200915:22:54 PM AEST

SELL TRS $5,937.50 -550 $10.85 $30.00 Thu, 26 Mar 200915:21:38 PM AEST

DV TRS $176.00 550 $0.32 $0.00 Thu, 26 Mar 200905:44:11 AM AEST

BUY TRS -$1,130.00 100 $11.00 $30.00 Fri, 20 Mar 2009 13:38:41PM AEST

BUY LGL -$1,041.00 300 $3.37 $30.00 Fri, 20 Mar 2009 12:18:38PM AEST

BUY TOL -$907.24 148 $6.13 $0.00 Fri, 20 Mar 2009 10:13:59AM AEST

BUY TOL -$42.26 2 $6.13 $30.00 Fri, 20 Mar 2009 10:13:55AM AEST

BUY CBA -$496.80 15 $33.12 $0.00 Thu, 19 Mar 200913:25:50 PM AEST

BUY CBA -$1,188.85 35 $33.11 $30.00 Thu, 19 Mar 200913:25:49 PM AEST


13/18

BUY ASX -$501.68 16 $29.48 $30.00 Thu, 19 Mar 200913:21:38 PM AEST

BUY ASX -$1,002.32 34 $29.48 $0.00 Thu, 19 Mar 2009

13:21:38 PM AEST

SELL RIO $4,573.00 -100 $46.03 $30.00 Thu, 19 Mar 200913:15:29 PM AEST

BUY RIO -$515.50 10 $51.55 $0.00 Fri, 13 Mar 2009 13:01:09PM AEST

BUY RIO -$2,092.80 40 $51.57 $30.00 Fri, 13 Mar 2009 13:01:05PM AEST

BUY ASX -$657.80 22 $29.90 $0.00 Fri, 13 Mar 2009 12:32:38PM AEST

BUY ASX -$1,554.80 52 $29.90 $0.00 Fri, 13 Mar 2009 12:32:38PM AEST

BUY ASX -$2,990.00 100 $29.90 $0.00 Fri, 13 Mar 2009 12:32:37PM AEST

BUY ASX -$59.90 1 $29.90 $30.00 Fri, 13 Mar 2009 12:32:37PM AEST

BUY BHP -$1,602.00 50 $31.44 $30.00 Fri, 13 Mar 2009 12:20:33PM AEST

SELL FGL $234.50 -50 $5.29 $30.00 Thu, 12 Mar 200912:48:01 PM AEST

BUY RIO -$1,399.72 28 $49.99 $0.00 Thu, 12 Mar 200912:46:25 PM AEST

BUY RIO -$50.00 1 $50.00 $0.00 Thu, 12 Mar 200912:46:24 PM AEST

BUY RIO -$1,079.79 21 $49.99 $30.00 Thu, 12 Mar 2009


14/18

12:46:23 PM AEST

BUY ASX -$1,573.00 55 $28.60 $0.00 Thu, 12 Mar 200912:41:22 PM AEST

BUY ASX -$87.20 2 $28.60 $30.00 Thu, 12 Mar 200912:41:15 PM AEST

BUY ASX -$1,229.80 43 $28.60 $0.00 Thu, 12 Mar 200912:41:15 PM AEST

BUY BWP -$191.00 100 $1.61 $30.00 Thu, 12 Mar 200912:37:54 PM AEST

SELL CPU $1,763.58 -238 $7.41 $0.00 Thu, 12 Mar 200912:26:16 PM AEST

SELL CPU $58.80 -12 $7.40 $30.00 Thu, 12 Mar 200912:25:13 PM AEST

BUY CBA -$1,453.50 50 $28.47 $30.00 Thu, 12 Mar 200912:25:08 PM AEST

SELL CSR $177.00 -200 $1.04 $30.00 Thu, 12 Mar 200912:24:57 PM AEST

SELL TTS $1,129.60 -446 $2.60 $30.00 Thu, 12 Mar 200912:17:43 PM AEST

SELL TTS $2,740.40 -1,054 $2.60 $0.00 Thu, 12 Mar 200912:17:43 PM AEST

BUY BHP -$3,103.00 100 $30.73 $30.00 Thu, 12 Mar 200912:14:26 PM AEST

SELL AAC $233.10 -185 $1.26 $0.00 Thu, 12 Mar 200912:14:04 PM AEST

SELL AAC -$11.10 -15 $1.26 $30.00 Thu, 12 Mar 200912:13:57 PM AEST


15/18


16/18

13:09:16 PM AEST

SELL TTS $116.16 -44 $2.64 $0.00 Wed, 11 Mar 200913:08:51 PM AEST



BUY CUS -$208.98 129 $1.62 $0.00 Mon, 09 Mar 200910:09:43 AM AEST





BUY LNN -$750.27 89 $8.43 $0.00 Fri, 06 Mar 2009 11:31:12AM AEST

BUY LNN -$122.62 11 $8.42 $30.00 Fri, 06 Mar 2009 11:30:26AM AEST

BUY FGL -$188.10 30 $5.27 $30.00 Fri, 06 Mar 2009 11:24:27AM AEST

BUY FGL -$105.40 20 $5.27 $0.00 Fri, 06 Mar 2009 11:24:27AM AEST

BUY TRS -$3,040.95 291 $10.45 $0.00 Thu, 05 Mar 200913:22:50 PM AEST


17/18

BUY TRS -$243.34 23 $10.58 $0.00 Thu, 05 Mar 200913:10:50 PM AEST

BUY TRS -$137.54 13 $10.58 $0.00 Thu, 05 Mar 2009

13:10:48 PM AEST

BUY TRS -$1,331.34 123 $10.58 $30.00 Thu, 05 Mar 200913:10:44 PM AEST

BUY STO -$4,034.94 273 $14.78 $0.00 Thu, 05 Mar 200913:02:57 PM AEST

BUY STO -$871.89 57 $14.77 $30.00 Thu, 05 Mar 200913:02:38 PM AEST

BUY CPU -$2,385.50 325 $7.34 $0.00 Thu, 05 Mar 200912:42:27 PM AEST

BUY CPU -$2,363.48 322 $7.34 $0.00 Thu, 05 Mar 200912:42:27 PM AEST

BUY CPU -$52.02 3 $7.34 $30.00 Thu, 05 Mar 200912:40:01 PM AEST

BUY TTS -$3,301.70 1,205 $2.74 $0.00 Thu, 05 Mar 200912:38:27 PM AEST

BUY TTS -$10.96 4 $2.74 $0.00 Thu, 05 Mar 200912:38:23 PM AEST

BUY TTS -$1,270.25 451 $2.75 $30.00 Thu, 05 Mar 200912:38:12 PM AEST

BUY TTS -$2,873.75 1,045 $2.75 $0.00 Thu, 05 Mar 200912:38:12 PM AEST


BUY TTS -$1,886.50 686 $2.75 $0.00 Thu, 05 Mar 2009


18/18

12:38:12 PM AEST


8 .3 Other Information

Graph of Portfolio Value over Sharemarket Game

$46,000.00

$47,000.00

$48,000.00

$49,000.00

$50,000.00

$51,000.00

$52,000.00

$53,000.00

$54,000.00

1 2 3 4 5 6 7 8 9 10 11

No. Week

P o r t f o l i o V a l u e

Documents

Share Market Report Assignment