Stock Market Simulation 2409

Yi, Yang

Student Work

Stock Market Simulation 2409

Pubblico Deposited

This project is a six-week simulation of the stock market, designed to impart practical knowledge of market trends and trading strategies, thereby enabling participants to make informed investment decisions. Using current and accurate market data, the simulation aims to mirror real-world conditions closely. Two distinct trading strategies were evaluated: the Buy-and-Hold approach and Swing Trading. These strategies were applied to identical portfolios consisting of selected stocks from nine companies. Each portfolio started with an investment of $100,000. Over the six-week simulation, the S&P 500 index increased by 3.07%. The Buy-and-Hold strategy yielded a return of 2.04%, underperforming the S&P 500 by 1.03%. In contrast, the Swing Trading strategy generated a 5.49% return, outperforming the S&P 500 by 2.42%. These results suggested that Swing Trading was more effective during this simulation. The foundational knowledge of stock market dynamics and trading experiences learned from this project will be helpful for the participant in making informed investment decisions.

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