Trading Journal

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School

Jomo Kenyatta University of Agriculture and Technology, Nairobi *

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Course

2317

Subject

Economics

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by bensonayub

1. Outline of Trading Strategy and Goals: My strategy of trading on Stocktrak.Com became mainly centered on accomplishing constant growth and also focusing on risk management. My overarching intention was to outperform the market and reap an extensive return on investment. To achieve this, I employed a different approach that covered a mixture of stocks, ETFs, and options. 2. Risk Limitation Criteria : I enforced strict criteria of risk limitation on specific positions and my whole portfolio. For every position, I set a stop-loss order at a predetermined percentage below the purchase price to restrict capability of making losses. Additionally, I ensured that no sole function represented above 10% of my portfolio's total cost, accordingly keeping off overexposure to any single asset. 3. Position Selection and Exit Strategies: Position Selection:  I carried out thorough studies and analysis before choosing any function. This covered analyzing the monetary health of businesses, analyzing market tendencies, and thinking about macroeconomic factors.  I also paid attention to diversification, ensuring that my portfolio included a mixture of growing stocks, cost shares, and shielding assets like bonds or gold ETFs.  I every now and then used technical evaluation to pick out entry points for short-term trades. Exit Strategies:

 My exit approach became based totally on both profit-taking and management of risk.  For profitable positions, I employed a trailing stop method, permitting me to capture additional gains because the stock fee rose whilst guarding against surprising reversals.  For underperforming positions, I stuck to my predetermined stop-loss levels to limit potential losses.  I monitored information and events that could affect my positions and altered my techniques as required. 4. Challenges Faced: One primary challenge I faced for the duration of the simulation trading was emotional management. It is simple to emerge as emotionally connected to a function, which may lead to making poor decisions. To triumph over this, I centered on keeping discipline, sticking to my pre-defined techniques, and not letting fear or greed pressure my moves. 5. Most Challenging Securities to Trade: The challenging securities I experienced during trading were the options. Options can be so complex and unstable, which makes it difficult to perform accurate prediction. Options’ management required a deep information of their intricacies, together with strike prices, expiration dates, and implied volatility. I needed to invest an adequate amount of time in gaining knowledge and practicing the trading of options. 6. Maximum Gain/Loss on a Single Position: My maximum benefit at a given point was $30, representing a 0.16% of return on investment. This got here from a perfectly-timed investment in a tech stock throughout a bullish market

period. I experienced this loss after holding onto a position longer than I was to, failing to adhere to my strategy of stop-loss. 7. Final Results - Thoughts and Summary: Finally, my trading simulation on Stocktrak.com turned to be valuable getting to experience the trading practice. I gained a net return of 0.16% over the period of simulation, outperforming the marketplace index. Even though I did face challenges and made mistakes through the process, my discipline in risk limitation enforcement and carrying out thorough studies paid off. Key Takeaways:  Diversification and risk management are critical for long-term achievement in trading.  Being disciplined emotionally is essential for making rational decisions.  Trading of options requires a deep know-how and practice.  Continuous learning and adapting to the shifting market situations are vital. In summary, the experience of trading on Stocktrak.Com became educational and rewarding. It reinforced the significance of getting a properly-defined method, sticking to it, and constantly gaining knowledge and adapting. I am eager to apply the knowledge in real-world trading to gain my financial goals whilst efficiently managing risks.

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