Stock Market Simulation 2105

Zhao, Yinuo

Student Work

Stock Market Simulation 2105

Public Deposited

The goal of this project was to gain a better understanding of the effects that real-world events and different trading strategies have on stock market investing by conducting a four-week stock-market simulation. Two stock trading methods were used in the simulation, namely the Swing Trading strategy and the Buy and Hold strategy. These two strategies were used in simulations performed across 6 total selected companies with 2 portfolios consisting of 3 companies each. Each of these portfolios was allotted $50,000 as an initial investment. The two portfolios ended with a gain of 0.2% for the Swing Trading method and 1% for the Buy and Hold Trading method. The corresponding S&P 500 index change in value during the course of the simulation went down by 7%. These results signify that the Buy and Hold Trading method profited more than the Swing Trading method, though it is worth mentioning both methods beat the market. The experience and knowledge attained throughout this project will allow for a better understanding of stock market investing and perform investing with more competence in the near future.

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