Business Finance Share Trading Project Assignment -
Setting up a of a Demo Trading Account
1. Go to the IG website For login to IG demo account.
2. Click on "Free Demo Account"
3. Create a Username and Password.
4. Fill in your personal details with "Australia" as your country of residence.
5. An email will be sent to the email address you have provided. Click on "Login to your demo" in the email.
Only one Demo Account is to be used for each group.
A. Selection of Shares
Select 5 ASX-Listed shares from different industries.
Any of the listed shares may be selected wit the exception of "Kidman Resources (KDR)"
Your selection of shares should be based on your research into news media and Internet information about the potential for the shares to rise in value in the short and medium term.
Before finalizing your selection, traders should ensure that the share can be traded via CFD's (see below). The best way to ensure that CFD's on your shares can be traded is to attempt to do a trade while the market is open without confirming the trade.
Provide only the links to the information you have gathered.
B. Trading
The Demo Account allows for the trading of shares or Contracts for Difference (CFD's). As the Demo Account only provides traders with AUD 20,000 with which to trade, trading will be done using CFDS's.
CFD's as well as limit requirements will be explained in lectures and tutorials and do not form part of the assignment. As such, students are not required to do research on CFD's.
You may start trading at any time but no later than 3 April.
There is no limit on the number trades done but all of the 5 shares must be traded at some stage. Only "long positions" are allowed. This means that you may not sell shares that you do not already own.
Traders may use any of the "tools" available to trade, including Limit Orders, Stop Loss Levels etc. as long as their account balance remains positive.
Note: The trading platform will automatically close positions when there is insufficient funds in the Demo Account.
All trading is to stop at 4 pm on May 11.
Following the termination of trading on 11 May, traders are to download a history of all transactions from the trading portal. Once this has been done, the column "PL Amount" is to be totaled and the list should be saved as an Excel file and submitted as a separate file when the assignment is uploaded to Brightspace.
Information on how to do this is provided in the "Help" section of the portal.
Marks for this section will be awarded based on the highest balance left in the Demo Trading account at the end of trading on 11 May the total of "PL Amount" in the sheet.
Groups will be allocated marks based on their position on the list of all groups in the class as well as the achievement of a positive growth in their trading account (a balance of greater than $ 20,000 on 11 May 2018.)
C. Share Research
1. Provide a brief summary of the information you have gathered on all five companies and an explanation of the reasons you have selected the shares for your trading portfolio.
In this summary you should also provide each company's most recent:
- P/E Ratio
- EPS
- Beta
- Debt/Equity Ratio
As well as these ratios, provide the following information
- Details of the industry in which each company operates, including recent developments in that industry.
- Share price history for the period 16 March 2017 to 16 March 2018 in graphic form.
- Significant recent local and global developments impacting the share and the industry in which it operates.
2. The following statistical analysis on each share is to be represented:
2.1 Mean and Standard Deviation of the daily movement in the share price for the period 16 March 2017 to 16 March 2018 (use the formulae provided in the study material).
2.2 The Correlation Coefficient over the same period using the Excel function between each share using the following table:
Make sure you do the research for part c and d from following companies -
1. BHP BILLITON
2. ANZ
3. WESFARMERS
4. Combank
Attachment:- Assignment Files.rar