In this assignment, students are required to:
(A) Speculate with virtual money on a real internet trading website.
(B) Write a report (maximum of 2,000 words) on their trading experience.
(B) Report (25 points)
The report must start with a cover sheet (using the template posted on CloudDeakin). On the cover sheet of your report, please provide the information as requested (your last name, first name, and student ID; username and password for your trading account; the final account balance and the number of transactions undertaken for each instrument; the currencies traded; and the word count). Your assignment will only be graded when all information required in the cover sheet are provided.
Immediately after the cover sheet, please provide a 1-page executive summary. The executive summary should show a brief account of your overall strategy, the financial instruments you have used, the number of transactions and currencies you have traded, and justify the total losses/profits on your account and whether or not you have undertaken any risk management activities.
In the body of the report, please provide a detailed description of the trading strategy you have employed. You do not need to explain every transaction; this would be virtually impossible given the word limit.
Rather, your report should attempt to show the sophistication and management of the trading strategies, highlight how you have used the theoretical tools developed in this unit, any research you have conducted on the foreign exchange market, and the manner in which you have approached your trading activity, using specific transactions as examples.
You should also discuss the use of risk management tools available on the easyMarkets platform during the trading period. Please note that any news item or report that helped you make your decisions should be carefully referenced and, if possible, included in the Appendix.
Please note that even if you lose money while speculating, it is quite possible for you to do well in this component of the assignment if you are able to provide a clear and logical account of your strategy, and possibly some insight into why it led to losses.
Similarly, students that make money must also substantiate their strategy in the report in order to do well in the assignment.