INTRODUCTION

According to Business Dictionary (2019), virtual stock trading is a

computerized method of executing asset transactions, typically via the internet, that

a financial market trader can use to practice their investing or trading techniques

without using any form of real money and thus eliminating all financial risks that may

result their trading decisions. As what I have read, virtual trading has been made

much easier in recent years thanks to the growing availability of online trading

brokers and software that can be readily downloaded from the internet. One of the

main uses of virtual trading is in allowing novice and professional traders to test out

new trading ideas and strategies, without having any risk of loss and while still

providing them with the information needed to refine their trading plans, styles and

techniques.

EXPECTATIONS

My expectations on this requirement are that it will give me a better

understanding of trading strategies and portfolio management. Also, I believe that I

will learn a variety of financial instruments and their risks and rewards as they apply

to asset management.

INVESTMENT PHILOSOPHY/STRATEGY

As market is efficient and prices reflect all relevant information, I decided to

follow the fundamental analysis strategy. I am buying those stocks that seem to offer

the better investment opportunities. I started with security analysis as my portfolio is

constructed from the securities that seem attractive price. I also made preference list

of companies whose stocks I want to buy. The strategy that I used refers to

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analyzing companies by their financial statements found in SEC filings, business

trends, general economic conditions, etc. It stresses on minimizing the investing fees

and avoiding the unpleasant results of failing to correctly predict the future.

RISK TOLERANCE

Talking about risk tolerance, I am really not fond of taking risks because I

have an unpleasant experience where I take the risk and make an investment. If

someone makes some investment they will receive income or profit but in my case, it

was like I just gave my money and receive nothing except expectations and regrets.

That is why I hate taking risks when money is involved. In this project, fortunately, it

was just a virtual stock trading wherein the money was also a virtual. I can trade

whenever I want without feeling any fear and regrets. However, if this trading is for

real, I think I will be careful in trading and will have a deep analysis about which

companies are best to buy stocks. Nevertheless, I still put into my mind that I am

doing a real trading and that is why I did my best in trading stocks and I studied

closely and carefully on what companies are best to trade with.

HOW STOCK MARKET DOING TODAY

Nowadays, stock market became rampant. It spreads quickly just like a virus.

Many people engage in trading stock because it helps them to gain profit

notwithstanding the risk which is the twin of trading stocks; as what I have learned to

my professor, the higher the risk, the higher the returns. It’s up to the investors if they

will invest to higher or lower risk and receive what return they want to have.

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 The yield curve inverting these days is worrisome. Regardless of this,

investors stay the course and focus on maintaining a diversified portfolio aligned to

their long-term goals.

INVESTMENT STRATEGIES AND COMPANIES

INITIAL EXPECTATIONS FOR MY STOCKS

The first time that I tried to trade, I traded in different companies that I think I

can receive a high return. Unfortunately for my poor knowledge and market

exposures, I failed to reach my expectations. While visiting on my portfolio, all I can

see was just numbers in color red that signifies the losses. I am so disappointed that

time until one of my friend laughed and said, “dili paman gud na makita dayun noh,

hulat lng gud hahaha”. That’s why, after three (3) days I checked again and still no

changes at all in the color that I was seeing. In one (1) week, I have a loss of 549.83

pesos. I hope the next time that I will check my account the loss will be lessened or

will become a gain.

THREE INVESTMENT STRATEGIES

Investment strategy is a set of rules, behaviors or procedures, designed to

guide an investor’s selection of an investment portfolio. Individuals have different

profit objectives, and their individual skills make different tactics and strategies

appropriate. Some choices involve a tradeoff between risk and return. Most investors

fall somewhere in between, accepting some risk for the expectation of higher returns.

Some investment strategies are:

ALGORITHMIC TRADING

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 Algorithmic trading is a method of executing a large order using automated

pre-programmed trading instructions accounting for variables such as time, price,

and volume to send small slices of the order out to the market over time (Chan &

Wiley, 2003).

ASSET ALLOCATION

Asset allocation is the rigorous implementation of an investment strategy that

attempts to balance risk versus reward by adjusting the percentage of each asset in

an investment portfolio according to the investor’s risk tolerance, goals and

investment time frame (Thune, 2019).

BUY AND HOLD

Buy and hold, also called position trading, is an investment strategy where an

investor buy stocks and holds them for a long time, with the goal that stocks will

gradually increase in value over a long period of time (Thune, 2019).

PURCHASE/SALE OF STOCKS

STOCKS THAT I CHOSEN

I chose to buy stocks in those different corporations because I believed that I

can gain due to the high status of their corporation. As what I have researched,

those corporations that I traded with are on top list of popular corporations where you

can receive a high return just like Ayala Corporations. Of course I also based my

decisions on my cash if I can be able to purchase that particular stock and minimum

purchase.

AGGRESSIVE OR CONSERVATIVE

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 I classify my stocks as conservative because I didn’t bought lot of stocks but

instead I bought enough stock that was minimum to buy and test if that corporation is

good or not. I am a type of person that is good in conserving and not an aggressive

one that will just buy and buy and then will regret in the end because did not have a

deep analyzing and making decisions before doing an act or buying . After I analyze

the result after one (1) week, I bought more stocks which ever resulted well and tried

to other corporations also to discover corporations that are high in risk but also high

on returns.

ROLE THAT THE INDUSTRY PLAYED IN PICKING MY STOCKS

The industry had an essential role played in picking my stocks especially

because it helped me in choosing the right corporations to buy stocks and it gives

me necessary information like which corporations are best to invest with. With the

available data that I have, I make sure that I carefully analyze and make relevant

decisions based on the results.

MEDIA NEWS

Media news is essential to know the status of a corporation and whose stocks

are best to purchase. Unfortunately, VTrade have no news regarding corporations

unlike First Metrosec. So instead of buying stocks without knowing news, I just

researched it on the Google for me to have such data.

BEST PERFORMING STOCK AND LEAST PERFORMING STOCK

My best performing stock was in Cebu Air, Inc. with a return of -38.58 pesos

and a return of investment of -4.16%. Obviously, it was negative but it was just for

now. In the long-run, hopefully I can receive a high return. On the other hand, the

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least performing stock was in Philippine National Bank with a return of -314.32 pesos

and a return of investment of -6.36%. For now, the return on investment was so low

but since it was a long-term investment we cannot say what will happen in the future.

SELLING STOCKS

I did not sell any stocks during the game because the purchase price was

bigger than the price if I sell it. I decided not to sell and wait until the market price

rises.

OVERALL SUMMARY

OVERALL IMPACT AND LESSONS LEARNED

Virtual stock trading, it is the best way in which you can invest money in

fantasy stock market. In this, you can actually get to know about trading fully. For

beginners who are just stepping into trading for them there is nothing better which

provide them platform to rise and learn properly all about trading.

Virtual stock trading is a really valuable place that all upcoming stock traders

should consider visiting. It gives a realistic version of things to be expected in the

financial market. Some of the lessons I extracted from this financial endeavor are:

PATIENCE

I have come to learn that this is the most important aspect when it comes to

stock trading. Expecting quick results is not the way to go and always leaves one in

a hot mess. I can confidently say this because I have personally experienced such a

scenario that ultimately led me to making a poor trading decision. It is therefore very

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important that one takes their time to pick the right investment opportunities

regardless of how long it might take to see any returns.

PERCEPTION

I have developed a keen eye for trends in the financial market. My anticipation

of what might or might not happen had tremendously improved hence aiding my

decision-making abilities. It is paramount that every financial trend in the market be

carefully evaluated and monitored constantly before a final trading decision is arrived

at.

KNOWLEDGE

Stock exchange is more of a dynamic rather than static trade. Due to this fact,

it is advisable that you constantly keep searching facts or reading books on new

financial strategies to ensure you do not end up being obsolete. This will also refine

your skills and tactics therefore boosting you to the frontlines of this competitive field.

MONEY GENERATED OR LOSE IN TOTAL

The total money I lose on August 15, 2019 at 6:00 PM was 951.73 pesos and

the total return on investment that it provides was -3.38%. The table below shows

how many stocks I bought, how much I earned/lose, and the return on investment in

each stocks that I bought:

STOCK QTY HOW MUCH I BOUGHT HOW MUCH I LOSE ROI

Ayala Corp. 10 P 9,342.50 P 86.07 -0.92%
San Miguel 10 P 1,802.70 P 75.89 -4.21%
Corp.
PNB 100 P 4,943.00 P 314.32 -6.36%
Petron 5 P 5,073.15 P 31.89 -0.63%
Corp.
BDO 10 P 1,520.60 P 101.94 -6.70%

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 Cebu Air 10 P 927.50 P 25.66 -2.77%
Del Monte 100 P 1,053.00 P 51.29 -4.87%
Pacific
LT Group 100 P 1,463.00 P 93.63 -6.40%
Pryce Corp. 200 P 1,040.00 P 75.07 -7.21%
BPI 10 P 968.00 P 95.98 -9.91%

THE NEXT TIME I WILL TRADE

It is a good question for me because at first, I don’t understand stock market. I

know stock market by reading my PDF copy of our book and by listening to our

professor. But in real life if I don’t know stock market investment in practically it must

be great obstacle for me. The virtual stock exchange is a great impact by knowing

stock market in real life. In the future when I will invest in stock market it must be

easier to capture the market and easily make profit. In stocks, I need to be a lot more

cautious of what I buy and I need to do more research in the industries before I

invest. I lost money in the virtual stock exchange and I learned that the money that

you earn can quickly disappear but if you buy the right stocks it can also increase

greatly. It taught me to manage my money the right way.

If a new person enter into this virtual stock trading, he/she must be more

practical by investing in the right ones and research more on how to trade and find a

good strategy.

WHAT MAKES ME ENJOY

The thing that makes me enjoy is the fact that I am trading money without fear

of losing real money. I enjoyed buying stocks that seems good when in fact it will just

lead me to loss. I also enjoyed picking corporations where I want to buy stocks and

checking their performance if it is good to buy to them. It’s happy to see that I gain

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but unluckily I wasn’t. Even though this project will end, I will still continue my virtual

stock trading because in the future I want to trade in reality. I enjoyed this opportunity

given to us to discover stock trading, all thanks to you Prof. Marian!

APPENDIX

PORTFOLIO HOLDINGS AND ORDER HISTORY

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3-YEAR STOCK CHART OF EACH COMPANY THAT I AM ABLE TO BUY

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3-YEAR STOCK CHART OF EACH COMPANY THAT I AM ABLE TO BUY

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3-YEAR STOCK CHART OF EACH COMPANY THAT I AM ABLE TO BUY

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3-YEAR STOCK CHART OF EACH COMPANY THAT I AM ABLE TO BUY

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COMPANY RESEARCH WORKSHEET

COMPANY NAME Ayala Corporation

HEADQUARTERS Makati, Philippines

TELEPHONE NO. 908-3000

WEBSITE http://www.ayala.com.ph

SECTOR Holding Firms

INDUSTRY Conglomerate

CEO Jaime Augusto Zobel de Ayala

ANNUAL NET P 43.4 billion

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY Ayala Corporation is one of the largest and most diversified

DESCRIPTION business groups in the Philippines, with business interests in

real estate, banking, telecommunications, water, power,

industrial technologies, infrastructure, healthcare, and

education. Its social commitment arm, Ayala Foundation, has

programs that focus on education, youth leadership,

sustainable livelihood, and the promotion of arts and culture.

With headquarters in Makati City and operations mainly in the

Philippines, it continues to grow its regional and global footprint,

serving millions of customers across all market segments.

Sources: edge.pse.com.ph and ayala.com.ph

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COMPANY NAME San Miguel Corporation

HEADQUARTERS 40 San Miguel Avenue, Mandaluyong City, Metro Manila,

Philippines

TELEPHONE NO. 632-3000

WEBSITE http://www.sanmiguel.com.ph

SECTOR Holding Firms

INDUSTRY Conglomerate

CEO Eduardo M. Cojuangco Jr.

ANNUAL NET P 52.2 billion

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY San Miguel Corporation (SMC) was originally founded in 1890

DESCRIPTION as a single brewery in the Philippines. Today, Southeast Asia’s

largest food, beverage and packaging company with a rich

portfolio of businesses, brands and products- many of which

are no. 1 or no. 2 in their respective categories.

Sources: edge.pse.com.ph and sanmiguel.com.ph

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COMPANY NAME Philippine National Bank

HEADQUARTERS Pres. Diosdado Macapagal Boulevard, Pasay City, Philippines

TELEPHONE NO. 891-6040

WEBSITE http://www.pnb.com.ph

NO. OF 5,606

EMPLOYEES

SECTOR Financials

INDUSTRY Finance and Insurance

CEO Jose Arnulfo “Wick” A. Veloso

ANNUAL NET P 5.7 billion

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY Philippine National Bank is one of the largest banks in the

DESCRIPTION Philippines. It was incorporated on July 22, 1916 to engage in

the general commercial banking business. It was established by

the Philippine government on July 22, 1916, during the

American Occupation. As of December 31, 2017, PNB has

more than 690 branches and 1,240 automated teller machines

nationwide. PNB also maintains more than 70 overseas

branches, representative offices, remittance centers and

subsidiaries across Asia, Europe, the Middle East, and North

America.

Sources: edge.pse.com.ph and pnb.com.ph

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COMPANY NAME Petron Corporation

HEADQUARTERS Petron Megaplaza, Gil Puyat Avenue, Makati, Philippines.

TELEPHONE NO. 886-3888

WEBSITE http://www.petron.com

NO. OF 9,236 Nationwide

EMPLOYEES

SECTOR Industrial

INDUSTRY Oil and Gas

CEO Ramon S. Ang

ANNUAL NET P 99 million USD

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY Petron Corporation (PCOR) was incorporated on December 22,

DESCRIPTION 1966 as Esso Philippines, Inc. (Esso) and later renamed to

Petrophil Corporation (Petrophil) when the Philippine National

Oil Company (PNOC) acquired Esso. Petron Corporation is the

largest oil refining and marketing company in the Philippines

and is a leading player in the Malaysian market. They have a

combined refining capacity of nearly 270,000 barrels-per-day,

producing a full-range of premium fuels and petrochemicals to

fuel the lives of millions of Filipinos and Malaysians.

Sources: edge.pse.com.ph and petron.com

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COMPANY NAME BDO Unibank, Inc.

HEADQUARTERS Makati, Philippines

TELEPHONE NO. 702-6000

WEBSITE http://www.bdo.com.ph

NO. OF 31,443

EMPLOYEES

SECTOR Financials

INDUSTRY Finance and Insurance

CEO Nestor V. Tan

ANNUAL NET 2.59 billion USD

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY BDO Unibank, Inc. (BDO), originally known as Acme Savings

DESCRIPTION Bank, was acquired by the SM Group in 1976. BDO listed its

shares on the Philippine Stock Exchange on May 21, 2002. The

company merged with Equitable PCI Bank in May 2007.

Sources: edge.pse.com.ph and bdo.com.ph

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COMPANY NAME Cebu Air, Inc.

HEADQUARTERS Domestic Road, Pasay

TELEPHONE NO. 802-7000

WEBSITE http://www.cebupacificair.com

SECTOR Services

INDUSTRY Aviation

CEO Lance Y. Gokongwei

ANNUAL NET 3.48 billion

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY The Philippines’ leading airline, Cebu Pacific (CEB), entered

DESCRIPTION the aviation industry in March 1996 and pioneered the “low fare,

great value” strategy. Since its establishment, Cebu Pacific has

flown over 150 million passengers. At present, the Group

operates an extensive route network serving 59 domestic

routes and 43 international routes with a total of 2,820

scheduled weekly flights.

Sources: edge.pse.com.ph and cebupacificair.com

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COMPANY NAME Del Monte Pacific Limited

HEADQUARTERS 3003 Oak Road Contra Costa Centre, California, United States

TELEPHONE NO. 09565940980

WEBSITE http://www.delmontepacific.com

NO. OF 7,800

EMPLOYEES

SECTOR Industrial

INDUSTRY Processed Food

CEO Gregory Longstreet

ANNUAL NET 2.6 million USD

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY Del Monte Pacific Limited (DELM) was incorporated on May 27,

DESCRIPTION 1999 as an international business company under the laws of

the British Virgin Islands. On August 2, 1999, the Company was

admitted to the official list of the Singapore Exchange Securities

Trading Limited, and subsequently debuted in the Philippine

market on June 10, 2013.

Sources: edge.pse.com.ph and delmontepacific.com

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COMPANY NAME LT Group, Inc.

HEADQUARTERS Taguig, Philippines

TELEPHONE NO. 808-1266

WEBSITE http://www.ltg.com.ph

SECTOR Holding Firms

INDUSTRY

CEO Lucio Tan

ANNUAL NET P 4.410 billion

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY LT Group, Inc. (LTG), formerly Tanduay Holdings, Inc. (THI),

DESCRIPTION was incorporated on May 25, 1937 under the name The Manila

Wine Merchants, Inc. to engage in the trading business. The

Securities and Exchange Commission (SEC) approved the

change in corporate name to Asian Pacific Equity Corporation

on September 22, 1995 and the change of its primary purpose

to that of a holding company. On November 10, 1999, the

corporate name was again changed to THI.

Sources: edge.pse.com.ph and ltg.com.ph

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COMPANY NAME Pryce Corporation

HEADQUARTERS 17/F Pryce Center 179 Chino Roces Ave. Cor. Bagtikan St.,

Makati City

TELEPHONE NO. 899-4401

WEBSITE http://www.pryce.com.ph

SECTOR Industrial

CEO Salvador Escaño

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY Pryce Corporation and its subsidiaries are committed to

DESCRIPTION growing its businesses by expanding market share, increasing

revenues and net income, as well as enhancing shareholder

value as a publicly-listed company. The Company aims to

accomplish these by taking strategic moves that make the most

of opportunities or create them, improving ways of doing

business continuously, and adhering to meaningful values that

are consistent with the company’s objectives.

Sources: edge.pse.com.ph and pryce.com.ph

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COMPANY NAME Bank of the Philippine Islands

HEADQUARTERS Makati, Philippines

TELEPHONE NO. 246-5902

WEBSITE http://www.bpi.com.ph

NO. OF 12,355

EMPLOYEES

SECTOR Financials

INDUSTRY Finance

CEO Cezar P. Consing

ANNUAL NET P 18,017 million

INCOME

PUBLICLY Publicly Traded

TRADED OR NOT

COMPANY Bank of thE Philippine Islands (BPI) was incorporated on

DESCRIPTION January 4, 1943 as a domestic commercial bank and went

public on October 12, 1971. The company offers an array of

financial services that include corporate banking, consumer

banking, investment banking, asset management, corporate

finance, securities distribution, and insurance services.

Sources: edge.pse.com.ph and bpi.com.ph

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 REFERENCES

Business Dictionary (2019). Virtual stock trading. Retrieved on August 15, 2019 from

http://www.businessdictionary.com/definition/virtual.stock.trading.html

Chan, E. & Wiley. (2003). Algorithmic Trading: Winning Strategies and Their

Rationale. Retrieved on August 11, 2019. Retrieved from https://www.

Investopia.com/investmentstrategies.

Thune, K. (2019). Top investing strategies. Retrieved on August 13, 2019. Retrieved

from http://www.thebalance.com/top-investig-strategies-2466844.

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