Assignments should be from 1,000 to 1,250 words. Data and other exhibits (charts etc.) should be included in an Appendix.
Note: You must find, present and interpret appropriate numerical data to support your work.
1. Open an online demonstration trading account for either equities (for example, at [url removed, login to view]) or FX (e.g. at [url removed, login to view], [url removed, login to view] etc). Try to make money in the simulated trading environment. Each time you buy or sell, make notes in your trading log about the reasons for your decision, the economic and market events at the time etc. The goal is to try to discover a set of trading “rules” that work for you, and what sort of mistakes you must avoid. Record those ideas in your trading log as well. The assignment you submit must include:
a. A copy of your Trading Log (these are notes you make, as you are going along, about the reasons you decided to make each buy/sell trade)
b. A printout of your Transaction Log (all the buy/sell transactions you made) from your trading web site account
c. A summary table showing the profit/loss for each position taken
a. You create this for me so that I can easily see what you bought, when, how much and at what price; when you sold it, and for what price; how much profit/loss you made on that “round trip”
d. Your conclusions, set of trading rules and synopsis of what you learned during the exercise.