STOCK TRADING JOURNAL

Submitted to

Prof. Queenie Tenedero, CPA

College of Accounting Education
University of Mindanao

In Partial Fulfillment
of the Requirements in Financial Markets (ACC212)

Amamore L. Plaza
00683 | 8:00 – 9:00 AM

August 20, 2019

 TABLE OF CONTENTS

I. EXECUTIVE SUMMARY
Description of the project…………………………………………………………………… 1

II. INTRODUCTION
Questions from the Virtual stock trading guidelines, “Introduction” ……………….……... 2
Questions from the Virtual stock trading guidelines, “Research on investment
strategies and companies” ………………………………………………………....…….… 3

III. ANALYSIS
Questions from the Virtual stock trading guidelines, “Purchase/Sale of stock” .................... 3

IV. CONCLUSIONS AND FINDINGS

Questions from the Virtual stock trading guidelines, “Overall summary.”
For ROI or Total Holding Period return, show it in V. CHARTS/DIAGRAMS
OF PORTFOLIO PERFORMANCE...................................................................................... 4

V. CHARTS/ DIAGRAMS OF PORTFOLIO PERFORMANCE

Portfolio Holdings................................................................................................................... 6

VI. CURRICULUM VITAE ........................................................................................................... .8

VII. APPENDIX
Company Stock Chart..............................................................................................................9
Company Research Worksheet...............................................................................................12
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I. EXECUTIVE SUMMARY

The share prices in the stock market fluctuate on a daily basis due to continuous buying and
selling. Stock prices move in trends and cycles and are never stable. An investor in the stock market
is interested to get a good return on his investment and hence purchases securities at a low price and
sells them at a high price. However, to gain successfully return on investments in a volatile stock
market is not an easy job to do. An investor should have enough knowledge about the working of
the stock and securities being traded in the markets, its fluctuation in prices provides the investors
with basic understanding of the markets and helps them in their investments, for instance, investing
in the right type of securities at the right time. Hence, this is where technical analysis comes into
picture. Technical analysts consider a wide range of factors most importantly price movements and
volume to indicate the future trend of the market and the best buying and selling opportunities of
stocks.

This paper contains various trading journal guide questions on introduction, research on
investment strategies and companies, purchase/sale of stocks, and overall summary. Each section
has different type of questions. In introduction, it talks about the expectation of an investor on this
requirement, wherein he will state his expectation what will be the outcome or knowledge he may
acquire throughout this project. Also, the investment philosophy or strategy he uses to help or guide
him in stock trading. Lastly, how his risk tolerance affects his buying behavior and how is the stock
market doing and its current situation. Moreover, in research on investment strategies and
companies, it talks about his initial expectations for his stocks and he require to cite at least three
investment strategies and describe these briefly. Meanwhile, in part of purchase or sale of stocks, it
covers the questions why he chose such stocks and he requires to classify his stocks whether it is
aggressive or conservative. What role did the industry play in choosing his stocks? Is the media
news play also its part in his purchases? What’s his best performing stock and least performing
stock and his total return on investment? Lastly, if he sells any stock, what made him to sell the
stock? On the other hand, in the overall summary, he’s able to answer the questions that talks about
the overall impact of the activity to him and the lessons that he learned from it. He also to cite the
money that he makes or lose in total and the return on investment from trading. Lastly, what would
he do differently next time to be more successful with his investments and what did he enjoy about
the project.

The purpose of this journal is to help the new stock traders to give ideas how to trade wisely,
though it is more on question-and-answer type of activity, but the essence there is they formulate
best things to consider in buying and selling the stocks. As being individual stock trader not only
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carries more risk, it requires more effort as you need to actively watch your positions and
understand whether and how to react to market moves.

II. INTRODUCTION

A. What is your expectation on this requirement?

-His expectation on this requirement is that he would want to know what’s the benefits of
this to his program that he takes. He also wants to know about more the nature of the stock trading
wherein it raises questions in his mind, how the stock market (PSE) play its role in trading the
stocks by the investors? And how he would be able to know what are the important things to
consider in buying and selling the stocks?

B. What is your investment philosophy/strategy?

-The investment philosophy that he uses is growth investing, wherein investors buy shares
of companies whose products or services hold the potential to generate strong earnings growth and
higher stock prices in the future. Thus, using of it would guide him for better trading of stocks in the
market.

C. How does your risk tolerance affect your buying behavior?

-The risk tolerance really affects his buying behavior by carefully choosing the best
company to buy with stocks. As his goal is to earn from the stocks, which he buys low and sell
high. Therefore, he thinks before he invests.

D. How is the stock market doing today, what is its current situation?
-As of August 16, 2019, 10:31 AM, the market value is currently low. This indicates that it
is better not to sell or trade the stocks because the market value is below than the value of the
stocks, otherwise, a loss.

II. RESEARCH ON INVESTMENT STRATEGIES AND COMPANIES

A. What were your initial expectations for your stocks?

-The initial expectations of his stocks are how he would be able to buy and sell stocks
though he has using an investment philosophy, but the thing is, he’s just a beginner or new in
trading of stocks. He also wants to expect that how much will he earns throughout the given period
of trading of stocks.
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B. Cite at least three investment strategies and describe these briefly.

-The three examples of investment strategies are:
 Value investing – which involves seeking stocks that an investor believes ae
currently underpriced by the market and whose prices the investor expects will
eventually rise significantly.
 Fundamentals investing – which relies on identifying companies with strong
earnings prospects.
 Socially-responsible investing – which focuses on investing in companies
whose practices align with an investor’s values as they pertain to the company’s
impact on society and the environment.

C. Attach in the appendix brief corporation research about the stocks you have bought, plus
their market performance for the past three years. See appendix A and B.

III. PURCHASE/SALE OF STOCKS (sample topics below, please include all relevant
information that explains your purchase/sale decision)

A. Why did you choose the stocks you did? Explain how your research about the stocks you
bought, and significant amounts of your company, affected your buying decision.
-He chooses those stocks because as what he had research about the stocks, “buy low and
sell high.” So, he buys a stock as much as low (Lowest/low ASK PRICE with highest ASK
VOLUME), so that he can sell it high with markup (highest/high BID PRICE with highest BID
VOLUME). Thereby, it really affects his buying decision throughout the trading by being a smart
buyer of such stock.

B. Would you classify your stocks as aggressive or conservative?

-He classifies his stocks both aggressive and conservative, because he buys high and low
value of stocks. To distinguish between the two, stock aggressive is a higher-risk investment that
can potentially produce higher returns, while stock conservative seeks to protect an investment
portfolio’s value by investing in lower risk securities. Thus, the high value of stock is aggressive
since it is riskier but high returns, while low value of stock is conservative since it is low-risk than
the aggressive.

C. What role did the industry play in picking your stocks?

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-The role of the industry in picking his stocks is that it provides a secure and regulated
environment where he can transact in shares and other eligible financial instruments with
confidence with zero-to low operational risk. Also, it maintains all company news, announcements,
and financial reporting, in which he can wisely make a decision in buying a stock.

D. Did any media news play a role in your purchases?

-Yes, because media today is very essential specially in disseminating information
immediately. It really helps him to know the update news about the stock market which gives him
an idea when and what is the best time to buy a company stock.

E. What was your best performing stock and least performing stock and what is your total
return on investment did it provide?
-The best performing stock of his trading was BDO, since it’s capital loss was the lowest
among other stocks, while his least performance stock was the APC since it was the highest capital
loss compared to others. Moreover, his total return on investment was 10.84%.

F. Did you sell any stocks during the game? If so what made you sell the stock?
-Yes, it made him to sell the stocks to fulfill his curiosity and to experience, as well as to
earn profit.

IV. OVERALL SUMMARY

A. What is the overall impact of this activity to you and what are the lessons that you learned?
-The overall impact of this activity gives him an idea how to become a successful investor
and become knowledgeable about the economic flow of businesses and the country. Moreover, the
lessons that he learned from this activity is to take a risk in investment, because as they say “the
riskier is you do not take the risk.” This really implies that to become an investor he must a risk
averse type of person in any circumstances, so that he will achieve what he desires for his life.

B. How much money did you make or lose in total and what return on investment did it
provide? Provide a table of how much you bought your stocks for, how much you earned and your
ROI/Total Holding Period return (capital gains + dividend yield)
-He got loss of Php1, 612.51 and he got return on investment of 10.84 %. See figure 1.
Portfolio Holdings, page 6.
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C. What would you do differently next time to be more successful with your investments?
-The thing that he will do next time to be more successful with his investments, first, is he
learned from his imperfections. Second, he will apply those lessons that he acquired with and use it
for the betterment of his next investment. Lastly, he will be more watchful and dedicated with his
investments, as his doing in this activity, was he lacks of time to look for his investment because of
time conflict with his studies.

D. What did you enjoy about the project?

-He really enjoyed about the project by trading of stocks, checking his portfolio if he got
profit/loss, reading the news about the stock market, research about the status or stability of the
company, using trade calculator so he could know if he got profit/loss in selling the stocks.
Although it was just a virtual trading what matters for him, he was overwhelmed for an opportunity
to act or become somehow an investor of his lifetime.
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V. CHARTS/DIAGRAMS OF PORTFOLIO PERFORMANCE

Figure 1. Portfoliio Holdings

Original Cost of Stock = Orig. – Cash Balance

= 100, 000 – 84, 060.43
= 15, 939.57

ROI= (Unrealized PL / Cost of Stock) x 100

= (1,612.51 / 14, 869.13) x 100
= 10.84%
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Capital Gain = [(Market Value – Cost) / Cost] x 100

Capital Gain (AP) = [(3, 397.50 – 3, 684.76) / 3, 684.76] x 100

= (-287.26 / 3, 684.76) x 100
= -7.80 %

Capital Gain (APC) = [(900.30 – 1, 113.87) / 1, 113.87] x 100

= (-213.57 / 1,113.87) x 100
= -19.17 %

Capital Gain (BDO) = [(5,516.63 – 5, 888.10) / 5,888.10] x 100

= (-371.47 / 5, 888.10) x 100
= -6.31%

Capital Gain (IDC) = [(1, 218.66 – 1, 495.74) / 1, 495.74] x 100

= (-277.08 / 1, 495.74) x 100
= -18.52 %

Capital Gain (JFC) = [(2, 223.51 – 2,686.66) / 2, 686.66] x 100

= (-463.15 / 2, 686.66) x100
= -17.24 %
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VI. CURRICULUM VITAE

AMAMORE LORENZANA PLAZA

S. De Jesus Street, Brgy. 35-D, Davao City

___________________________________________________________________________

EDUCATIONAL BACKGROUND

Name of School Year Graduated

College University of Mindanao 2018 – present

Bachelor of Science in Accountancy

Senior High School University of Mindanao 2016 – 2018

Bolton Campus, Davao City

Accountancy, Business and Management Strand

Junior High School Felisberto Verano National High School 2012 – 2016

Elementary School Cortes Central Elementary School 2006 – 2012

PERSONAL INFORMATION

Date of Birth: April 10, 1999

Place of Birth: Tandag City, Surigao del Sur

Civil Status: Single

Parents: Necodima L. Plaza

Ferdinand C. Plaza
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VII. APPENDICES
APPENDIX A. COMPANY STOCK CHART
Figure 2. Aboitiz Power Corporation Stock Chart

Figure 3. APC Group Inc. Stock Chart

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Figure 4. BDO Unibank Inc. Stock Chart

Figure 5. Italpinas Development Corp. Stock Chart

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Figure 6. Jollibee Foods Corporation Stock Chart

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APPENDIX B. COMPANY RESEARCH WORKSHEET

Figure 7. Aboitiz Power Corporation Research Worksheet
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Figure 8. APC Group Inc. Research Worksheet

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Figure 9. BDO Unibank Inc. Research Worksheet

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Figure 10. Italpinas Development Corp. Research Worksheet.

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Figure 11. Jollibee Foods Corporation Research Worksheet

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