This semester, I was given the opportunity to participate in a project where I am
acting as if I am a prospective portfolio manager. My potential clients have entrusted me
with $1,000,000 to invest at my discretion for a period of 10 weeks. They expect me
invest their money wisely and profitably. My clients anticipate a high rate of return but
the problem lies in their risk tolerance because it is not very high. Also, I am in a
competition with other asset managers who happen to also be my classmates. My
prospective clients are considering these other asset managers so I have to make sure that
I am successful in managing their portfolio. In the final days of this opportunity, the
portfolio which I managed will be analyzed to see how well I performed and where I rank
in comparison to the other asset managers. If my clients are satisfied with my
performance in managing their portfolio, there is a high chance that my 10-week
relationship will be extended with them.
This project has taught me how to invest in stocks carefully and to research my
stocks before I just buy and sell randomly. I was new to the trading in stocks and did not
have any prior experience with the stock market. I didn’t know what I was doing at first
but the more I researched the more I learned. Over time I realized that the trading game
and making money is all about strategy. Not only is it strategy but also timing is very
important when it comes to trading at the right moments. This can only happen if you do
your homework before hand, which includes extensive research on the company and its
financials in the past. I used articles to assist me in making the right choices and
decisions for my portfolio.
I ranked 4th in my class and had overall gains of $76,379.08 which is a lot better
than I thought