1 / 19

Common Cents Investment Group

Common Cents Investment Group. Monday January 13 th First meeting of the semester. Agenda. CCIG updates Macro update – Weiyi Xie Stock market today Risk management Investopedia results. Spring Semester Update. ALWAYS accepting new members $20 dues for new members

eliza
Download Presentation

Common Cents Investment Group

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Common Cents Investment Group Monday January 13th First meeting of the semester

  2. Agenda • CCIG updates • Macro update – WeiyiXie • Stock market today • Risk management • Investopedia results

  3. Spring Semester Update • ALWAYS accepting new members • $20 dues for new members • Pizza each meeting, t-shirt, simulator prize • Please fill out survey (copies in front) • What do you want to see more of? • Long term or short term investing?

  4. RISE Student Investment Conference • Redefining Investment Strategy Education • University of Dayton • March 27th - 29th, 2014 (Thursday – Saturday) • Largest student investment conference in world • Costs • $165 per registration (register before Jan. 31st) • $94 per night per hotel room • $20 travel **See me after if your are interested**

  5. Guest Speakers • Professor Matt Sheridan • Accounting firms • Christian Gabis • Luv Sharma • Others • Will try for guest speaker every 2-3 weeks

  6. Macro Update WeiyiXie

  7. Financial News for the past month • QE tapering: • From $85 billion to $75 billion in January 2014 • Expected to decrease $10 billion every month, until it goes to 0 • What does it mean to the US economy? US debt? US stock? US housing market? • What does it mean to world economy, especially to emerging markets (like Brazil, India, etc)? • Dr Janet Yellen was appointed as the new Chairperson of the Federal Reserve

  8. Financial News for the past month • Non-Farmal Payroll (NFP) report for December 2013 • Expected: 197,000 new added jobs • Result: 74,000 new added jobs • Unemployment rate: 6.7% • Fed agreed to raise interest rate once unemployment rate reaches 6.5% • Weather? • Others?

  9. Major indexes down today • Many companies lowered earnings estimates

  10. Market Cycle • Market near all time high Dow S&P 500

  11. Risk Management • Planning for a deviation from expected outcome • Will you beat the market? • Average market return is 10% • What’s your opportunity cost if you don’t? • How to plan for risk on a single trade? • Protect from significant losses using stop orders • Example to follow

  12. Risk Management Example • Account size of $10,000 • 2% risk - tolerable value of loss • $200 - based on total account value • Long QQQ (Nasdaq ETF) • Purchase price $87 / share • Stop order set up at $84.00

  13. Risk Management Example • Risk/Reward ratio • Set a price target of $96 Stop exit Entry Target

  14. Risk Management Example • 3.5% loss on trade at stop • 2% loss on account at stop stop

  15. Trading Journal • Keep track of trades over the years • Remember market trends • Lessons learned • Ways to do it • Excel spreadsheet • One page descriptions • Make up your own • Many brokerages have good portfolio analysis tools

  16. Investopedia Simulator Update

  17. Investopedia Simulator • Create reference players • “Market” • SPY, DIA, QQQ, SLY • “Experiment” • Throwing a dart approach • Pick 25 completely random stocks • Compare “Market” to “Experiment” at end of semester

  18. Questions???

More Related