Trading Report

In: Business and Management

Submitted By Quanle91
Words 1006
Pages 5
Trading report

If I do not have any specific information about the financial markets, only have historical information on the returns/risks of the different types of assets (ETFs), I would slowly enter to the market. I would draw a personal financial market roadmap to figure out my goals and risk tolerance and evaluate my comfort zone in taking risk. However, as I have 1 millions dollars (money paper) to invest, so I have intention to buy high beta stocks with high risk. In this case, I will choose the stock with beta above 1 (riskier than the market). Before you buy stock in a company, you need to do a little light – reading and doing research. Investing in stock without checking out the company beforehand is a recipe for disaster. In this case, I will do a research online like Yahoo Finance, MSN Money, Investor Guide and The Street to find the most volatile stocks with high risk and high return. Investing in volatile stocks is like riding a roller coaster. When the market is on a roll, taking on more risk in your portfolio can have big rewards, but you will have stomach to deal with potential losses. I chose to buy 2,000 shares of Netflix with a market price $91.84 and the beta is 1.32. Netflix is an amazing success story both in entertainment industry and stock investment. Within 3 years, the company stock price has been increasing from $20 a share to over $100 a shares. Investing in Netflix either I can get a lot of money return or lost a lot of money. I also research for most traded stock on Wall Street Survivor to see which popular investing company is. Amazon, Microsoft, Apple and Ford Motor are most traded stock on market. Then I can narrow down the type of stocks and figure out which company has more potential gain. Stock chart is also really important to take a look before investing in a company. We can see the market price change in a period…...

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