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Stock Trek Final Report

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Submitted By darchiev
Words 1800
Pages 8
INVESTMENT STRATEGY AND SELECTION:
The strategy employed for Stock-Trak was to diversify our portfolio among the sectors and various stocks. The goal was to earn at minimum 3% on the principal, and this was to be obtained by doing technical analysis and looking for stocks that showed future potential for a price increase, or a price decrease in the case of a short sell. We also looked for news from the companies that would positively or negatively impact them. We were more inclined towards trading stocks, and did not invest in other securities such as bonds and mutual funds, since stocks had the potential to offer a higher yield. In order to pick a stock, we looked at financial websites such as Google Finance and Yahoo Finance. We looked at the stocks that were most active in dollar volume for the particular sector, and within these stocks, the plan was to pick stocks that were not too volatile, and having an upward trend. This turned out to be a mistake on our part since we picked some stocks that were too highly priced hoping it would further increase, but instead decreased shortly after we bought it. Also, some of the stocks that we picked turned out to be volatile and dropped considerably thereafter despite our approach to stay away fi-om highly volatile stocks. We also picked stocks from different sectors, and these included technology, energy, basic materials, financials, services, and transportation.
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INVESTMENT SUCCESSES:
Nokia is an example of a good investment, and has been on an upward trend since July 2ndwhen it purchased the digital map maker company NAVTEQ. The share price shot up from $23.67 on July 2ndand hovers around the $27 mark today. However, we were delayed in buying
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the stock, and as a result did not enjoy too much of a profit from the stock.

Some of the stocks we selected would have been profitable if we did not

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