Business & Finance homework help. INSTRUCTIONS FOR THE REPORT
– Save the final report as LastName_FirstName.doc
– Upload/attach the files in the Assignments folder under the Trading Project
– The final report should be professional containing pages in this order
o a title page
o a table of contents page with titles and page number
o an introduction – give a background, your motivation or how you planned to start trading
o Each section should have a title, sub-titles (if any) and must written in paragraphs
o discuss five important trades (should be one from each of these five categories)
i. buy/sell call option
ii. buy/sell put option
iii. an option spread – bull/bear/calendar, straddle or any combination
iv. buy/sell futures – currency/interest rate/index/commodity/future option
v. buy/sell spots
o conclusion – see below
o a page for references
o include charts, figures or any visual tools to convey the rationale as to why you made the trade
o page numbers on each page at the bottom
– Your final course paper should be at least 3-5 pages (double-spaced) paper where you will discuss the rationale of at least the five most important trades one from each of the five categories listed above. Critically analyze the gains or losses. This 3-5 pages does not include title page, table of contents, appendices, etc.
– Conclusion: Should include a statement about what you learned from the experience and what you would have done differently had you taken this course before taking part in the exercise
– You can use as many graphs or charts to explain the trades you made or the technical indicators used in making the trades. The charts and graphs do not count towards to 3-5 page written report.
– Give a list of the references at the end of the report. The references can be news articles, data sources used, even video links or programs that you watched. Any information that is relevant in you trading decision can be listed in the references.
© Leonard Arvi Page 2 of 6
Ability to write clearly, correctly and concisely is must have skill. I strongly encourage you to utilize the resources at this Writing Center, details below. Do not wait until the final week of submission to seek appointments. As and when the report develops, get it critiqued and re-written.
SOME USEFUL TIPS
(Thanks to Prof. Conway, F.)
The trades made in the active account should reflect the material demonstrated and referred to in lectures, as well as those adopted by you having read outside the material, whether it is self-interest or adopted form from previous modules.
Here are some suggestions:
• _The traders’ strategy and level of risk (this could be a percentage of current funds, e.g. 5%. It is recommended that students do not trade a large percentage of their cash on individual trades).
• _Reasons as to why the underlying has been traded (i.e. in the case of stocks, why it was purchased and/or short position taken). This may be speculative (given expected company reports, etc.) or a hedged position taken given other positions taken (in the case of options).
• _The planned exit point for the trader. The trader should state before a trade is activated the point at which they will close out positions, e.g. in the case of futures, traders may state that they will close out a losing position once they lose X% or X amount of their trade on that derivative or asset. Also, they must highlight that they will close out on or before the expiration date.
• _If using fundamental or technical analysis to make speculative decisions on the future direction of the underlying, the trader must show the figures and/or graph in the report before the trade is activated highlighting their reasons. Once the trade has been reversed, the graph at the date of closing out the position should also be shown to highlight the movement in price. The trader must report the movement in price over the period on that trade and reflect on the traders’ own anticipation of the price movement.
• _Traders must note that the prices shown for each underlying in each exchange reflects those in real markets and prices may be delayed by at least 15 minutes.
• _It is recommended that traders be selective in their approach at the early stages of the report, i.e. get comfortable with the purchase of stocks in a few industries/exchanges. Also, traders should buy and short a few underlying in the futures markets while using low volumes.
• _It is very important to record the month you traded the derivative so that you can reverse the contract before maturity.
• _Marks will be given for the variety of trades made that incorporates the material delivered in lectures, as well as those undertaken by the traders own initiative. Due to time restrictions, not all strategies can be addressed. Any student that is adventurous is more than welcome to use other strategies, which will be acknowledged by the examiner. The report is essential as it shows the traders’ activities and strategies. It is imperative that the report is started immediately. If the trader fails to write the report from the outset, it will cause problems later, therefore reflecting lack of quality and management of trades. This could possibly lead to losses, both in trades made and marks given for the assignment.
• _Large profits may not be the deciding factor for marks awarded for this report (although they can be highly correlated with the traders astute awareness of price movements and proficient use of derivatives and strategies used). As long as the trader carries out trades and implements relevant strategies, and reports their entry and exit points, and reflects back on each outcome (whether it’s a losing or winning position), the report should merit a satisfactory grade.
There is no limit to the report, since trades activated by each trader can vary in number and/or discussion length. Enjoy the experience!
Lighten up the report by reporting on:
• _How you were feeling at that particular time (tired, anxious, hungover, etc.)
• _What you consumed prior to the trade (coffee) or the last time you had eaten.
You’d be surprised that some of the above could have resulted in losing trades. If so, change your pattern and approach to making trades regarding the above and identify if trading outcomes change for the better or worse.