This project is an eight-week stock market simulation. The goal of this project is to compare two different trading strategies against each other, as well as give the participant a foundational understanding of the stock market through simulations. The first trading strategy is a Buy and Hold strategy where stocks can be bought but cannot be sold until the end of the eight weeks. The second strategy is a Frequent Trading strategy where stocks can be bought and sold or shorted and covered throughout the eight weeks. Both strategies were applied within a specific pool of twenty companies, and each strategy started with an initial cash sum of $100,000. The results showed that the Buy and Hold strategy outperformed the Frequent Trading strategy, ending the simulation with a return of 2% compared to the Frequent Trading strategy’s return of 0.6%. This project also provided the participant with foundational knowledge about the stock market.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Lafond, Jack

Subject

• Learning
• Project-Based Learning

Publisher

• Worcester Polytechnic Institute

Identifier

• 73161
• E-project-082222-141412

Advisor

• Tang, Dalin

Year

• 2022

UN Sustainable Development Goals

• Not Specified

Date created

• 2022-08-22

Resource type

• Interactive Qualifying Project

Source

• E-project-082222-141412

Rights statement

• In Copyright

Last modified

• 2022-12-21