ASX Share market Game Template PDF

Title ASX Share market Game Template
Author Japheth Moguche
Course Marketing Managment
Institution University of Nairobi
Pages 2
File Size 67.5 KB
File Type PDF
Total Downloads 111
Total Views 161

Summary

I provide an ASX Share market game template...


Description

ASX MGT Part 2: Trading plan. 1. The main motivation of getting into trade is to generate wealth. This can be either through dividends paid by the company or increase in prices of shares or both of them (Alfaro, Bloom, & Lin, 2016, May). Additionally, making profit is among the motives of entering into trade. Shares can increase or loss value; therefore, monitoring of portfolio performance must be given priority to ensure that no loss is made. This can be aided by the use of ASX watchlists tool which are easy to make that allows for quick and convenient for accessing of prices and announcements, and tracking of securities within one location. ("ASX Watchlists enable you to monitor the performance of securities in your stock portfolio. Start to monitor stocks with ASX watch lists today.", 2019). 2. The goals achieved from trading is to have access to a large market share. This is through registering on ASX; hence, there is access to a variety of people who are in need of the product. Gaining access to registered brokers and financial planners is advantageous as they can also assist in distributing the product to where clients can access them easily. As a result of this, access to a large market share which in return have a positive impact on the income generation (("Australian and International Issuers of Trading and Investment Products Can Take Advantage of ASX Market Service. Find Out More About Product Issuers Here.", 2019). Secondly, partnering with the highly recognized brand in the market and also, improve on the service delivery to the clients. Thirdly, attract more visitors through the use of brokers on the website. This can also have a positive impact on the income generation. Finally, be among the groups who are offering unique financial services in the market ("ASX operates two trading, clearing and settlement platforms. Learn more about our trading platforms and become an ASX participant today.", 2019). 3. Before making any decision to invest, it is advisable to take into consideration the risks and returns that are associated with that investment. Therefore, according to ASIC (2013), it is worthy to invest in hybrid securities as compared to other investment opportunities. Despite of being perceived to be having a greater risk, they also have a higher rate of return for compensating against loss suffered or risk (Davis & Saba, 2016, 2019). Therefore, the higher the risk an investment has, the higher the rate of investment. Additionally, investing in hybrid securities, an investor has a potential to receive an income stream for a pre-determined period, improve the return on capital, vary the risk of a portfolio, and finally, high chances of earning profits from the interest rates. Credit, liquidity, and interest rate are the risks to take into consideration before investing in hybrid securities (Meneghello, 2018). Credit risk is the financial strength of the investor, liquidity risk is being unable to sell the investments easily and faster, whereas interest rate is the changing in the coupon rate and it is affecting the yield on the security. 4. Building stock screening. this is the use of software packages, brokerage firms, and financial websites to provide more information concerning the stocks that I want to invest in. In the process of creating stock screening, an investor(I) should put into consideration the investment goals before choosing any criteria parameter. Some of these investment goals include; risk tolerance, tax implications, among other risks that maybe associated with investments.

Stock research. After narrowing down the stocks interested in investing, a comprehensive research should follow to ensure that all the required information is unveiled out that will assist in making the right decision. In this case income statements, cash flow statements, discussion and analysis made by management should be considered crucial at this stage. Company announcements. These are announcements released to the market through the ASX Market Announcement Platform. The service providers assist in making the announcements readily available on the ASX website. Therefore, accessing the market websites such as ASX, crucial information can be sourced which is significant for any decision to be made before investing ("ASX operates two trading, clearing and settlement platforms. Learn more about our trading platforms and become an ASX participant today.", 2019, “View information on the top 20 Australian shares traded by volume and by value on the Australian share market. See total value traded, last share price and % Change.", 2019).

Part 4. Critical reflecting on trading activity. In our trade execution, we used two processes for executing a trade that is the use of brokers and use of software packages. Use of brokers succeeded because they are the only intermediaries required by law to give investors execution services, report to the market about the quality of execution on stocks, and to notify customers about routing of their orders for best execution. Additionally, the cost of executing a trade is cheap as compared to other processes due to growing of online brokers who usually give commission rebate to their customers. Finally, brokers are suitable to use by short-term traders who want keep their execution costs as low as possible within a short period of time. Whereas, use of software packages for executing a trade did not succeed as we were not able to get into access to significant information that was to assist us for executing our trade; besides, it is not a recommended process for offering services to investors. Making money makes one feel good, excited, and hopeful especially from doing a good job or ethically receiving from others. This is because you will feel independent, taking care of your crucial bills, and having control on the spending. On the other hand, one feels unhappy, frustrated, boredom, uneasy and unsettled when losing money because it busts one's budget. Also it causes stress and can even cause some illness. Excitement and hope keep one to opt for the best to come; hence, make one to put more efforts towards success in their endeavour. Whereas boredom, fear, unsettled, and frustration they reinforce on the negativity to the investor therefore adding more miseries to the general performance of the trading activity....


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