StockTrak and Investment Education – An Overview

Abstract

—Stock-Trak Global Portfolio Simulations introduce a hands-on learning experience for students to understand investments and allow the instructor to integrate the variety of course contents into the simulation.

  • —Engages the integrated learning efforts from students
  • —Stimulate the interests of investment
  • —Build up a sound knowledge base for financial markets

—This article discusses my teaching model with using the simulation, feedbacks from the students about the simulations, and my thoughts for future reference.

A Brief Overview of the Simulations in My Class

  • — Every student manages a $5,000,000 portfolio, and 300 trades during a 3 month time period;
  • —Students can buy, sell, buy on margin, and sell short almost all common stocks, bonds, foreign currencies, mutual funds, futures and options in the United States and selected foreign countries;
  • —Students are required to trade stocks, bonds, mutual funds, futures and options that are covered in the course;
  • —Class presentation and final report to check the learning outcome.

Getting started buying and selling securities

The Teaching Model

  • —Initiate the portfolio
    • —Portfolio structure and allocation
    • —Strategies and risk tolerance
    • —Do research to pick up the securities
  • —Weekly class review about the project progress
    • —Ranking in trading frequency, value of the portfolio, and Sharp Ratio   review
  • —Every student makes one presentation to the class
    • —Report the progress of the project, trading strategies, etc.
    • —Share good idea and lesson learned from the trading with classmates
    • —A short written report about the presentation
  • —Hands on experiences
  • —Sale short
  • —Trading futures
    • —Most favorite trading and most lessons learned
    • —Margin requirement and mark to market
  • —Trading options
    • —Comprehend to make an investment decision
    • —Trading call/put vs. exercising the option to complete the trading
  • —Final report is due at the end of the 3 month
    • —A summary of the trading activates and strategies
    • —A report of trading outcomes overall, profits and/or losses
    • —The lessons learned from “making money” and “losing money”
    • —What have learned from the project
    • —Appendix including all the weekly statements of the Stock-Trak account
    • —Charts and tables, and the contents do not beyond 6 pages (excluding the statements in the appendix).
  • Grade of the project
    • —20% of the course and based upon the learning efforts of managing the portfolio
    • —How many trades and trading frequency
    • —The efforts to try new methods learned through the course, investment strategies developed management of the portfolio
    • —The class presentation and the report with the presentation (peer evaluation)  survey    review
    • —The final report of the project
  • Manage the portfolio and integrate the simulations with the course materials—
    • There are  tasks in each chapter to  link to the project
    • —Hands-on experience enhance the learning that make challenging textbook material easier to comprehend
    • —Short sales
    • —Trading futures
    • —Trading options

Use of short selling options and futures

Peer Review Form

Student Grades Report

Student Feedback

—The most favorite project in my college career!

—Overall I really enjoyed this simulation. It gave me a decent grasp on how the market works … there is no such thing as timing the market and making about average profits on a consistent basis

—Overall, although I lost big and finished in nearly the bottom of the class, I learned a lot. I was far from achieving the portfolio with the greatest value, but I learned a lot of useful information. I feel comfortable now reading quotes, as well as creating orders for stock, bonds, futures, options and spots. Being given the opportunity to make mistakes without taking any financial losses was invaluable.

—All in all, I can honestly say that this simulation has proven to be one of the greatest learning experiences I could imaging. I learned a lot from making money, and even more from losing it. While finishing near the top of the class would have been nice, I think I may have actually learned a great deal more by finish at the back of it.

—What I truly gained from this project was a much better knowledge on the workings of the stock market…not only learned what a call and put were in class, but I was also able to experiment with buying these different types of options outside of the class…

—This was probably one of the most fun, interactive projects that I have ever done in my class. I spent more time in this simulation than I have on any other project and I fell as though I still needed to spend more. At least now I feel a lot more comfortable when it comes to investing. I am looking forward to using what I have learned through the class and the stock-trak simulation in my real life and building my own personal portfolio.

— The project has been very easily the most valuable project I have ever been involved in during the course of my school career.

—The project taught me about the stock market

—I learned through the project to be an investor that involves dedication, drive, research, and how investment works

—I had a misconception before that stock market is an easy way to get rich quick…this project taught me even with taking the right steps, doing the right research, and having all the necessary information making money… it is difficult at best

—Overall, this project will play an invaluable role in the rest of my life as I plan on being involved with investing in some way…it taught me more than I could have ever expected…

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