Tasks and Duties
Task Objective
Your goal for Week 1 is to conduct an in-depth analysis of the current virtual stock market trends and develop a strategic plan for researching emerging stocks. You will create a comprehensive document illustrating your understanding of market drivers, the relationship between economic indicators, and investor sentiment. This task will help you build a foundational strategy that will support subsequent tasks.
Expected Deliverables
- A DOC file titled 'Week1_Market_Strategy.doc' containing the complete analysis and strategic plan.
- A detailed report covering market trends, economic factors, and a proposed research methodology.
- Visual aids (charts, graphs) where necessary to substantiate market trends.
Key Steps to Complete the Task
- Research current trends in the global and virtual stock market using publicly available data.
- Identify key economic indicators affecting stock prices, such as interest rates, inflation, and employment figures.
- Develop a clear and strategic research framework, outlining how you would investigate future trends over the next quarter.
- Outline the potential risks and opportunities in the market with a SWOT analysis.
- Structure your document with an introduction, methodology, analysis, and conclusion.
- Review and polish your DOC file ensuring a logical flow and clarity.
Evaluation Criteria
Your work will be evaluated on the depth of market research, clarity of strategic planning, proper documentation with relevant visual evidence, and overall presentation. The ability to connect economic theory with practical market trends will be highly valued. Your submission must be well-organized, detailed, and articulate, demonstrating a professional approach to stock market research.
Task Objective
This week you will focus on the fundamentals of stock analysis. Your task is to select two companies (or sectors) and conduct a thorough evaluation of their financial health by examining publicly available financial statements and market performance indicators. You are required to produce a DOC file that serves as a research report, helping to identify underlying factors that impact stock pricing and overall market value.
Expected Deliverables
- A DOC file titled 'Week2_Fundamental_Analysis.doc' containing your complete financial analysis report.
- An executive summary, detailed financial analysis, and conclusion with actionable insights.
- Data visualizations including charts and graphs that support your analysis.
Key Steps to Complete the Task
- Select two companies or sectors from the virtual stock market for analysis.
- Gather relevant financial data from publicly available resources.
- Analyze income statements, balance sheets, cash flow statements, and other critical financial metrics.
- Identify trends in revenue growth, profit margins, and debt levels.
- Discuss potential risks and growth opportunities based on your findings.
- Draft a clear report structured with an introduction, detailed analysis, comparisons, and final recommendations.
Evaluation Criteria
Your DOC file will be assessed based on the depth of your financial analysis, clarity of your insights, and the practical relevance of your recommendations. The report should reflect a strong understanding of fundamental analysis techniques and the ability to communicate complex financial data in an accessible manner. Emphasis will be placed on the logical structure, presentation, and the professional tone of the document.
Task Objective
The focus of Week 3 is on technical analysis and simulating trading strategies. Your task is to evaluate historical stock data using technical indicators to forecast price movements and to devise a simulated trading strategy. The objective is to demonstrate your capability to integrate analytical tools with practical trading strategies. This report will serve as a detailed guide on how market trends can be quantified and how trading decisions can be logically structured.
Expected Deliverables
- A DOC file titled 'Week3_Technical_Analysis.doc' containing your technical analysis and trading simulation report.
- A detailed analysis explaining the technical indicators used (e.g., moving averages, RSI, MACD).
- A simulated trading strategy complete with entry and exit signals.
- Visual representations such as annotated charts and graphs.
Key Steps to Complete the Task
- Gather historical stock price data from publicly available sources.
- Select and interpret relevant technical indicators to analyze price trends.
- Develop a step-by-step simulated trading strategy based on your findings.
- Create example charts with annotations to highlight patterns and forecasting logic.
- Write a detailed explanation of your analysis, strategy rationale, and potential limitations.
- Review and revise the document to ensure clarity and completeness.
Evaluation Criteria
Submissions will be judged on the accuracy of the technical analysis, the feasibility and innovation of the trading strategy, and the clarity of documentation. The report must effectively translate technical analysis into a practical simulation of trading decisions. Exceptional attention to detail, thorough explanation of methodologies, and a clear, logical structure in the DOC file will result in higher marks.
Task Objective
For Week 4, you will evaluate the performance of simulated trading strategies and optimize a hypothetical portfolio based on your assessments. Your challenge is to review past performance data, analyze risk management strategies, and propose improvements for better portfolio diversification. This task is meant to integrate your knowledge of market research, technical and fundamental analysis, and trading simulations to produce a consolidated evaluation report.
Expected Deliverables
- A DOC file named 'Week4_Performance_Evaluation.doc' that includes a complete evaluation and optimization report.
- A comprehensive performance review of your simulated trading strategy, including metrics such as ROI, risk-adjusted returns, and volatility.
- Recommendations for improving portfolio performance and risk management strategies.
- Supporting analyses with charts, tables, and visual data representations.
Key Steps to Complete the Task
- Review the simulated trading data and analyze performance using quantitative metrics.
- Examine risk and return ratios to identify areas for improvement.
- Research general portfolio management principles including diversification and risk mitigation.
- Propose a detailed plan for portfolio rebalancing and optimized allocation of assets.
- Write a structured report with clear sections: Introduction, Performance Analysis, Portfolio Optimization, Recommendations, and Conclusion.
- Ensure that the document is thoroughly reviewed for coherence, accuracy, and professional presentation.
Evaluation Criteria
Your submission will be evaluated based on the depth of performance analysis, innovation in portfolio optimization techniques, and the clarity and professionalism of your report structure. Emphasis will be placed on your ability to critically evaluate trading performance and to propose actionable and realistic improvements. The final DOC file should be well-researched, methodically organized, and should display a high level of understanding of both qualitative and quantitative aspects of portfolio management.