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Trading Report FIN552

Finance investment (Universiti Teknologi MARA)

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FACULTY OF BUSINESS AND MANAGEMENT

UNIVERSITY TECHNOLOGY MARA CAMPUS SUNGAI PETANI
BACHELOR OF BUSINESS ADMINISTRATION (HONS.) FINANCE

FIN552

INVESTMENT & PORTFOLIO MANAGEMENT

INDIVIDUAL ASSIGNMENT:

FINAL TRADING REPORT

(EQUITIES MARKET TRADING GAME)

PREPARED BY:

NUR SYAZWINA BINTI SALIM (2018653638)

KBA242 4A

PREPARED FOR:

NUR SYAZANA BINTI MOHD NASIR

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ACKNOWLEDGEMENT

First and foremost, I am grateful to Allah S.W.T for giving me the wisdom, strength and
patience needed as well as the opportunity for me to gain knowledge in this course through
completing this assignment. I managed to complete this assignment with great enthusiasm
and with all the time given. I managed to spend it wisely by doing proper research and
searching the idea needed to complete this assignment. This assignment is the result of the
efforts pulled as well as the assistance of others, be it indirect and direct help from the others.

Next, I owe my sincere and earnest thankfulness to my lecturer, Madam Syazana bt Mohd
Nasir, for being patient with our class. I would like to thank her for giving me the guidelines,
as well as other relevant information needed to complete this assignment.

Last but not least, I would like to give thanks to my parents, who act as my leading supporter
by giving me the courage and the financial support when I needed it the most, thus enabling
me to complete this assignment proudly. Thank you.

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TABLE OF CONTENT

PAGES

TITLE PAGE i

ACKNOWLEDGEMENT ii

TABLE OF CONTENT iii

1.0 Introduction 1

2.0 Trading Plan and Strategy 2

3.0 List of Stock Traded 3-7

4.0 Strengths and Weaknesses of Trading Strategies 8-9

Conclusion 10

References 11

Appendices

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1.0 Introduction

Investment is an asset or item acquired to generate income or appreciation. In an

economic context, saving is the buying of products that are not used currently but used
in the future to generate capital. Throughout finance, an investment is a capital
commodity that has been acquired with the expectation that the commodity will
generate profits in the future or can be sold at a better benefit price afterwards.

Recent market adjustments related to current knowledge come from the assumption
that either the product is worth purchasing or not. The investor should divide their
investments by diversifying their portfolio and, as an investor, they can not "throw all
the eggs in one basket." They can invest in a stock, bond, preferred stock, future,
warrant, and much more.

By doing this task, it allows me to figure out what kind of investor interest that matches
me and the danger involved for each of the shares that I exchanged at Bursa Market
Place. There are three degrees of risk involved, namely extreme risk, moderate risk
and even low risk. Low and moderate investor choice is more fitting to me because,
based on the stock I sold, I prefer low and moderate investment returns with low and
moderate risk. That's because I want to avoid losses due to a false signal of stock
performance.

When i trade in Bursa Market Place, I will use a range of approaches that involve
company analysis, technical analysis and fundamental analysis, and I am more likely
to be effective in trading. In total, I will select three stocks as a profit, a loss, and a
common way of gain and loss.

The financial student is given around RM 100,000 as of the starting capital in our
simulation game account. We are assigned the mission of gaining the maximum
income and engaging with the other participants. Until buying, I do a study that I will
purchase from a firm and prepare some approach to aid with trading activities. I select
certain forms of trading strategies, such as fundamental analysis, technical analysis,
swing trading strategy and day trading.

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2.0 Trading Plan and Strategy

First of all, I use business research as my technique before purchasing some stock.
Company review is a method of creditors analyzing shares, gathering details on the
company's history, goods and services, as well as profitability. In the business
research process, the buyer also discusses the organization's past, concentrating on
incidents that have taken place—contributed to shaping the Business. As a shortlist of
businesses, I, as an investor, should evaluate the strengths and skills of each
organization to determine individual businesses that are capable of developing and
retaining a competitive edge.

Second, technical analysis is a market methodology used to interpret data and to

recognize market gaps in price movements and anomalies seen on charts. Technical
experts conclude that historical trade practices and shifts in protection rates may be
useful measures of the potential of defence. Movement of costs. They may use
scientific evidence independently of other study activities or in conjunction with other
principles of intrinsic interest criteria. Still, more frequently, their judgements are
focused solely on statistical security charts. The technical analysis may be contrasted
with the fundamental analysis, which focuses on the Financials of the Business rather
than historical pricing averages or developments in the stock market. We use the
support and resistance indicator, the change rate (ROC) indicator and the volume
indicator to accompany the buying decisions.

Finally, fundamental analysis is a form of analyzing stocks by attempting to calculate

the worth of the portfolio. Fundamental analysts study everything from the conditions
of the overall economy and industry to the financial situation and management of the
Business. Also, fundamental analysis is the examination of the underlying events that
impact the well-being of companies: economics, business associations and
businesses. As for most of the research, the goal is to extract predictions and benefit
from potential market movements. At the level of the organization, fundamental
analysis can include the review of financial results, management, market theory and
competition.

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3.0 List of Stock Traded

I have invested in a variety of groups in the market with 30 stocks. Still, for this
assignment, I have selected the best top 3 stocks that can generate significant profits
relative to all the stocks, and the stocks that I have selected are NETX, NEXGRAM
and TRIVE. From my point of view, there is a definite trend in which the market price
was continually fluctuating up and down. Based on my analysis, these stocks are in
the bullish market, which is the key reason why I want to invest in that portfolio. This
is the list of stock that I gain profit or loss, excluded stock that has no change in the
price.

Stock Quantity Trade price (RM) Comment

(Commission every
trade 0.42)

MINETEC 100 Buy: 0.26

Sell: 0.28 Profit: 0.02

KPOWER 100 Buy: 1.74

Sell: 1.70 Loss: 0.04

MASTER 100 Buy: 1.53

Sell: 1.54 Profit: 0.01

JAKS 100 Buy: 0.99

Sell: 1.07 Profit: 0.08

DSONIC 100 Buy: 0.98

Sell: 1.05 Profit: 0.07

JERASIA 100 Buy: 0.20

Sell: 0.19 Loss: 0.01

APPASIA 100 Buy: 0.17

Sell: 0.18 Profit: 0.01

HOMERIZ 100 Buy: 0.50

Sell: 0.48 Loss: 0.20

SEALIN 100 Buy: 0.31

Sell: 0.30 Loss: 0.01

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EKA 100 Buy: 0.04

Sell: 0.05 Profit: 0.01

SINOTOP 100 Buy: 0.14

Sell: 0.23 Profit: 0.09

MESB 100 Buy: 0.29

Sell: 0.28 Loss: 0.01

ULICORP 100 Buy: 0.38

Sell: 0.39 Profit: 0.01

SCNWOLF 100 Buy: 0.14

Sell: 0.16 Profit: 0.02

NETX Buy: 0.01

2,147,483,600.00 Sell: 0.15 Profit: 0.05

NEXGRAM Buy: 0.01

250,000 Sell: 0.15 Profit: 0.05

TRIVE PROP Buy: 0.005

2,147,483,600.00 Sell: 0.010 Profit: 0.005

NETX

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The price of Netx Holdings was down and up in the range of 0.005 only every day. The
research was carried out on the P / E ratio of each company because it is the measure
of benefit to the market valuation of the asset. This ratio is used to classify stocks that
are too high or low. I've been more involved in this stock than any other stock I've ever
sold since it gives a massive gain of 50 per cent to my trading operations. The price
change on this stock for the low was 0.01 while the top bid was 0.015 and indicates
that if I trade this stock at the lowest price of 0.01, the possible loss is shallow and the
stock will increase again at 0.015. Based on the article, NetX Securities Berhad has
seen a spike in revenue of 24 per cent a year in the last half-decade. That's way above
the bulk of other pre-profit firms. So, in the face of it, we are amazed to see that the
share price has fallen by an average of 32 per cent each year in the same period. It
may be that the stock has already been over-hyped.

NEXGRAM

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I choose this stock when I realize it is the same trend as Netx Holdings. This is because
the stock also had a low price of 0.01, and its 52-week high price was 0.015. Around
the time I exchanged Nexgram, the price only played and shifted within the same range
as mentioned above. These commodities always shift like the same trend all the time
in the range 0.01-0.015.

The stock also has a reasonably good Equity Return (ROE) and is a bit like the shares
of Netx Holdings. The ROE value of this portfolio is-16.231 as referred to in the most
recent financial statement of the Bursa MKTPLC. Since this stock is similar to NETX,
I am not frequently trading this stock. Based on the article, NEXGRAM is the only stock
that shows positive momentum compare to other 11 stocks.

TRIVE PROP

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Trive Property Company Berhad, previously ETI Tech Corporation Berhad, is engaged
in investment keeping and management services. The divisions of the Business
comprise Banking, Production, Building and Investment portfolios. The Trade division
is involved in the distribution of solar panels and related goods. The Manufacturing
division is engaged in the manufacture, assemble and marketing of battery
management systems.

TRIVE PROP was the last stock I traded. Before I start trading TRIVE, I carry on
analyzing the market to see the value at a price every day. In terms of volatility, this
stock is less volatile compared to NETX and NEXGRAM, but I still choose this stock
because the day's price at 52 weeks high is 0.010. The day's low is 0.005, and the bid
price is lower than NEXT, which gives me great opportunities to maximize my profits
as I can buy more units. Their profit is excellent, the value which is 100 per cent. This
is my plan and way to make a profit every day of the trading game.

Based on the news that I get from thestar.com. That was published on March 17, 2020.
The stock increased by 0.5 cents, or 100 per cent, to one cent. It is the fourth most
successful counter in Bursa Malaysia with 12.31 million shares exchanged. The group
has announced that Tan Li Sin has subscribed 100 million shares of the firm by private
placement. Currently, it has a direct interest of 3.93 per cent or 100.25 million shares.
At the end of the first quarter of October 31, 2019, Trive Property had a net loss of
RM968,000 on revenues of RM1.13mil. And I see trive appears to experience sales
growth since the decline in the last year.

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4.0 Strengths and Weaknesses of Trading Strategies

Our challenge as an investor is to recognize our strengths and weaknesses and to

pinpoint where and when they could affect trading decisions. It is crucial to recognize
one's trading psychology and align it with other key trading components, such as one's
trading method, trading strategies, business management, risk management, money
management, and the overall trading plan. And at the end of the day, the winning
percentage will not determine the trader 's success in trading. Okay, it's just about
competitiveness. In order to make money, it is necessary to have a willingness to take
risks and to have a cohesive, transparent, quick and enforceable trading strategy that
generates and retains an advantage. If the trading plan is the actual technique that
generates the edge, then, to make a profit, our success rate should be measured
through the successful enforcement of the trading plan.

The first approach I have used, and function effectively is a technical analysis, which
implies that I analyze investment and recognize trading opportunities by evaluating
statistical patterns extracted from market practices such as price fluctuations and
duration. This study utilized every protection with historical records, like stocks,
options, commodities and other assets. It also ensures that I, as traders, rely more on
short-term market fluctuations than I did in my previous trading. I've also been looking
at Bursa MKTPLC Mirror, Learn and Trade to discover traders there who are
experienced in this area.

My weaknesses are at my first transaction since I have no experience. My plan in the

first account isn't practical, so I already have several losses at the start of my time
in this trading game. At the early part, I also bought a lot of stocks that made my risk
of losing quite high that I was holding too much and not selling it when I'm making a
profit. The worse, I sold it because the purchase price was a loss.

Most of my mistakes have problems with greed, insecurity, urge, remorse and false
hope. Such feelings, when dealing, destroy the income ability of any investor. The
emotions jeopardize the proper implementation of one's business plan. The strengths
and weaknesses of the investor in trading relate to these emotions. Impatience can
contribute to greed. Besides, lack of discipline could lead to (false) expectation.
Therefore, it would make our choice a mistake. Based on sentiment analysis, I was
overconfident in trading, believing that stock would turn a profit.

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I learned my lesson that trading is an effective method of financial market participants

that seek to used buy-and - hold investment formerly. Instead of trying to profit from
long-term market up-trends, traders are looking for short-term price shifts to profit in
both rising and declining markets. As a trader, one of the most important things that
we can do to improve our probability of victory is to approach trading as a business.
Successful trading needs a financial strategy that involves in a real company and our
current sector. A successful trading strategy is one that we have analyzed, evaluated
on historical evidence, checked on a live market and intend to review at frequent
intervals.

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Conclusion

In general, knowing the value of each of these trading principles and how they operate
together will enable traders to start up a profitable trading company. Trade is tough
work, and traders who have the discipline and patience to obey these rules can lead
to success in a very competitive environment.

In the future, if I have the chance to trade, I will apply strategies such as technical
analysis, fundamental analysis and professional opinion in the right way. I always need
to make sure that I purchase products at a lower price and sell them while the price is
higher to earn a profit. I will always be regularly checking and reviewing my stocks to
ensure that rates do not collapse until I have a deficit. Though if it may not always be
right, it always encourages me to make a smarter choice. I'm not going to make the
same mistake I've made before, such as trading with feelings, and not doing proper
analysis that could impact my income. In this situation, before making a decision, I
shall make a careful analysis of the strength of technical and fundamental factors.

Lastly, short-term investing is my next approach before long-term trading. It is because

short-term trading is the fast ways to make a profit compared to long-term trading, it
could contribute to a brief time of false signals, so I will gamble if equity values collapse
and make a mistake by immediately selling the stock at a cheaper price instead of
waiting for the stock market to increase again. For total trading results, I have been
able to make a profit of RM 51,823,202.50 with 100/100 trading volumes. I was
pleased with my success at the end of these trading games.

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References

Simply Wall St. (2020, March 13). Introducing NetX Holdings Berhad (KLSE:NETX), The
Stock That Tanked 86%. Retrieved July 05, 2020, from
https://simplywall.st/stocks/my/software/klse-netx/netx-holdings-berhad-
shares/news/introducing-netx-holdings-berhad-klsenetx-the-stock-that-tanked-86/

TheEdge. (2020, June 02). Nexgram, Opensys, VSolar, AT, Sanichi, Cypark, Icon, PCCS,
Kenanga, Acoustech, Rubberex, RGT. Retrieved May 24, 2020, from
https://www.klsescreener.com/v2/news/view/684051/nexgram-opensys-vsolar-at-
sanichi-cypark-icon-pccs-kenanga-acoustech-rubberex-rgt

The Star Online. (2020, March 17). Quick take: Trive Property active, rises 100% in early
trade. Retrieved March 23, 2020, from https://www.thestar.com.my/business/business-
news/2020/03/17/quick-take-trive-property-active-rises-100-in-early-trade

Bowman, R., & Says:, J. (2019, December 10). Fundamental vs. technical analysis -
Beginner's guide with pros & cons. Retrieved July 10, 2020, from
https://catanacapital.com/blog/fundamental-vs-technical-analysis-beginners-guide/

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Appendices

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