Setting objective is an important aspect when investing in the financial market. For this stock track simulation project, the primary objective is to maximize the return of our capital. The second objective is to reduce the risk. It is common to hear that high return comes with high risk. This statement is present in almost all the finance and pricing-asset theories. It means that there is a correlation between risk and return. “Risk lies at the core of all investments” (Larry Light, 2013). So, the higher return you want to achieve, the more risk you will take to get it. “It’s the classic financial puzzle: how to balance risks and returns” (Larry Light, 2013). For our simulation, we agree to go with high return/risk policy. We run an efficient
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In effect, countries such as China, Japan, Germany, France and Brazil have seen the prices of their stocks fall significantly this year. It is due to the economic slowdown of the second global economic power, the Chinese economic. It is also caused by the falling price of the oil crude. Peter Kenny, an independent market strategist, said for this purpose that "the meltdown of crude and slowing growth in China have been real headwinds for emerging markets." Investors are also nervous about a new crisis in Europe, in a global recession and to the ability of banks to withstand to those …show more content…
The buy-and-holding strategy is the most use strategy. So, we buy of stocks that have depreciates and hold on them for a certain period and sell them to make a substantial return. We use active trading on assets that are very volatile on a day. We mostly use this strategy on commodities futures and oil stocks. We try to take advantage of the change on the oil market. We use mostly bought stock that are growing during the day at market order and sell them after we make a substantial return. We use limit order to buy stocks that are very volatile during the day at low cost or stocks that we expect to be cheap at the opening. Likewise, we use it also to sell asset that we expect to reach a certain amount during the
In effect, countries such as China, Japan, Germany, France and Brazil have seen the prices of their stocks fall significantly this year. It is due to the economic slowdown of the second global economic power, the Chinese economic. It is also caused by the falling price of the oil crude. Peter Kenny, an independent market strategist, said for this purpose that "the meltdown of crude and slowing growth in China have been real headwinds for emerging markets." Investors are also nervous about a new crisis in Europe, in a global recession and to the ability of banks to withstand to those …show more content…
The buy-and-holding strategy is the most use strategy. So, we buy of stocks that have depreciates and hold on them for a certain period and sell them to make a substantial return. We use active trading on assets that are very volatile on a day. We mostly use this strategy on commodities futures and oil stocks. We try to take advantage of the change on the oil market. We use mostly bought stock that are growing during the day at market order and sell them after we make a substantial return. We use limit order to buy stocks that are very volatile during the day at low cost or stocks that we expect to be cheap at the opening. Likewise, we use it also to sell asset that we expect to reach a certain amount during the