finance lab simulation and trading

   

 

FACULTY:

BUSINESS AND SOCIETY

 

Final mark awarded: _____

Assessment Cover Sheet and Feedback Form 2018/19

 

Module Code:

AF3S129

Module Title:

Theory and Practice of Securities Trading

Module Lecturer:

Dr Jia Cao

Assessment Title and Tasks:

Written Assignment Two

Assessment No.

2 of 2

No. of pages submitted in total including this page:

Completed by student

Word Count of submission

(if applicable): Completed by student

 

Part A: Record of Submission (to be completed by Student)
 

Extenuating Circumstances

If there are any exceptional circumstances that may have affected your ability to undertake or submit this assignment, make sure you contact the Advice Centre on your campus prior to your submission deadline.

 

 

Fit to sit policy:

The University operates a fit to sit policy whereby you, in submitting or presenting yourself for an assessment, are declaring that you are fit to sit the assessment.  You cannot subsequently claim that your performance in this assessment was affected by extenuating factors.

 

 

Plagiarism and Unfair Practice Declaration:

By submitting this assessment, you declare that it is your own work and that the sources of information and material you have used (including the internet) have been fully identified and properly acknowledged as required[1].  Additionally, the work presented has not been submitted for any other assessment.  You also understand that the Faculty reserves the right to investigate allegations of plagiarism or unfair practice which, if proven, could result in a fail in this assessment and may affect your progress.

 

 

Intellectual Property and Retention of Student Work:

 

You understand that the University will retain a copy of any assessments submitted electronically for evidence and quality assurance purposes; requests for the removal of assessments will only be considered if the work contains information that is either politically and/or commercially sensitive (as determined by the University) and where requests are made by the relevant module leader or dissertation supervisor.

 

 

Details of Submission:

Note that all work handed in after the submission date and within 5 working days will be capped at 40%[2].  No marks will be awarded if the assessment is submitted after the late submission date unless extenuating circumstances are applied for and accepted (Advice Centre to be consulted).

 

 

You are required to acknowledge that you have read the above statements by writing your student number (s) in the box:

 

Student Number(s):

IT IS YOUR RESPONSIBILITY TO KEEP A RECORD OF ALL WORK SUBMITTED

Part B: Marking and Assessment

(to be completed by Module Lecturer)

Assessment Task: carry out fundamental analysis and technical analysis and reflect on finance lab simulation and trading.

 

Section A: Fundamental Analysis (indicative word count: 1500)

 

Investment analysts often do not agree on the intrinsic value of a company’s stock. Please select a stock, do research online and answer the following questions based on fundamental analysis of the company, its sector, and the economy.

 

a.    What are the arguments in favour of higher share price for your chosen company’s shares?

b.    What are the arguments for a bearish outlook?

c.     Do you think your chosen company’s is currently overvalued, fairly valued, or undervalued? Please explain.

·        Please open a free seekingalpha user account (https://seekingalpha.com/). No need for subscription.

·        Read recent articles about your chosen company and summarize arguments for both bullish (point a) and bearish (point b) predictions for the future performance of your chosen stock.

·        For point c, carry out SWOT analysis that include the analysis of the company, its sector and the economy and make your own judgement on whether its stock is currently overpriced, underpriced or fairly priced. Please make good use of trailing P/E ratio and forward P/E ratio.  (Teaching slides for session fourteen, fifteen, sixteen, and seventeen)

 

Section B: Technical Analysis (indicative word count: 500)

 

Please choose a stock and make your prediction of its future price movement using technical analysis tools/techniques that are available to you, including price actions, candlestick analysis, chart patterns, moving averages and indicators.

 

·        Please carry out technical analysis on a chart (e.g. draw support/resistance lines, indicate breakout/signals/divergences etc on the chart) to make your price forecast.

·        Please provide descriptions/explanations of trading signals identified and make price prediction based on your technical analysis result.

·        You can choose your own stock for this task. Alternative, you can analyse the chart below.

 

Section C: Reflection on Finance Lab simulation and Trading (indicative word count: 1000)

 

In this section, you will reflect upon your experience of trading with globalinvestor simulation.

 

Please use data available from simulation runs using Finance Lab to discuss

·        your trading performances (profits/losses, rankings, etc)

·        the potential impact of ‘human’ behavioural factors on decision making (website https://www.ig.com/uk/research/psychology-in-trading )

·        your strengths and weaknesses as a trader (Session thirteen Trading basics—Table:Differences between Successful and Unsuccessful Traders)

 

Word count

 

Your report should be 3,000 words (+/- 10%) and the word count, excluding the list of references, should be shown at the end.

 

Format and Presentation

ð       Font, Font Size and Spacing

The recommended font is Times New Roman and the recommended font-size is 12. Choose 1.5 line spacing.

ð       Tables, Figures and Equations

Tables and figures shall be numbered consecutively throughout the assignment. For example, Table 1, Table 2, Figure 1, Figure 2 etc.

Equations should be numbered and numbers should be in round brackets at the right hand side of the page and be ordered consecutively throughout the assignment.

ð       Citations and References

Harvard referencing system is required.

Learning Outcomes to be assessed (as specified in the validated module descriptor https://icis.southwales.ac.uk/ ):

 

Critically appraise approaches to risk management using derivatives and discuss the fundamentals of trading utilising a simulation,

 

Critically appraise approaches to analysis of empirical data and evaluation of financial investments including portfolios.

 

 

Grading Criteria:

 

§  Fundamental Analysis (40%)

§  Technical Analysis (20%)

§  Trading performance (8%)

§  Reflection on trading experience (22%)

§  Format and Presentation (10%)

 

 

 

Feedback/feed-forward (linked to assessment criteria):

·        Areas where you have done well:

 

·      Feedback from this assessment to help you to improve future assessments:

 

 

 

·      Other comments

 

 

 

 

Mark:

 

Marker’s Signature:

 

 

Date:
 

     Work on this module has been marked, double marked/moderated in 

     line with USW procedures.

 

 

Provisional mark only: subject to change and/or confirmation by the Assessment Board

 

Part C: Reflections on Assessment

(to be completed by student – optional)

Use of previous feedback:

 

In this assessment, I have taken/took note of the following points in feedback on previous work:

 

 

 

 

Please indicate which of the following you feel/felt applies/applied to your submitted work

·        A reasonable attempt.  I could have developed some of the

sections further.

·        A good attempt, displaying my understanding and learning, with

analysis in some parts.

·        A very good attempt.  The work demonstrates my clear

understanding of the learning supported by relevant literature and scholarly work with good analysis and evaluation.

·        An excellent attempt, with clear application of literature and

scholarly work, demonstrating  significant analysis and evaluation.

 

What I found most difficult about this assessment:  
The areas where I would value/would have valued feedback:  

 

 

 

 

 

[1] University Academic Misconduct Regulations

[2] Information on exclusions to this rule is available from the Advice Centre at each Campus