| Project #4: Stock Market Investment Fantasy League |
The Value of Your Knowledge
“At a time when real understanding is at a premium, we’re increasingly in a world of information haves and have-nots. Last week’s consolidation of the financial-services industry will mean more hollowing out of Wall Street analysis, further reducing the flow of information. A corollary is that proprietary information will be more valuable than ever, giving well-informed traders an even bigger edge.”
— Gordon Crovitz, “Information Have and Have Nots,” The Wall Street Journal, September 22, 2008.
Described in the book, Section 1.5.4.
Relevant problems: Problem 2.8 and Problem 2.11; plus
solutions on the back of the book.
Developed in the Fall 2007 semester of Software
Engineering I
by Osha Fuangkasae, Zong-Zhi
Lin, John Paul Varkey, Srinivas Mudireddy, and Ravi Gudur
Project Report #3 (final) [PDF
document; size: approx 3 MBytes]
Source code consists of two parts:
(a) Retrieving
stock quotes from Yahoo! Finance and storing to a local database
[ZIP file; size: approx 9 KBytes]
(b) Backend for executing trading
orders, risk assessment, etc. [ZIP file; size:
approx 6 MBytes]
① Intro
to Stock Trading, By Joshua Kennon, About.com
This basic tutorial on stock trading provides twelve
different types of stock trading orders investors can use to help
manage their portfolio.
② Trading order: A trading order is a
client’s instruction to a broker to buy or sell a security. There
are many types of order qualifiers that stipulate such things as the
amount of time in which to leave an order in and at what price to
execute an order.
Check examples: Quick
Definitions of Stock Trading Orders |
Use the Investopedia Stock Simulator to Practice Trading
③ Trading order ticket: An order ticket is a form that is completed by a broker when receiving an order from a client. The order ticket will show the type of order (buy or sell), the number of shares, the security’s name, the price qualifications (such as market or limit) and the client’s name and account number. Check examples here and here and here.
③ Stock valuation: Stock valuation, from Wikipedia, the free encyclopedia.
Investopedia: Investment learning site
Risk Glossary: Investment learning site | TIAA-CREF brokerage services - Investment glossary
Introduction to Value at Risk (VaR), by David Harper,CFA, FRM; at Investopedia
Sharpe Ratio, at Investopedia.
Trade2Win.com: Why
Trade? by Robert Newgrosh - June 30, 2005
A discussion of the reasons why people get into trading, and the
impact those reasons can have on their performance.
High-frequency trading: Rise of the machines
The Economist, page 64, August 1st 2009. local copy
Algorithmic trading causes concern among investors and
regulators.
Stocks:
Love That Volatility!
For day traders, explains a
former practitioner, all movement is good movement.
BusinessWeek Slide Show: Tips for Winning at Day Trading
AOL Stock Quotes | AOL Stock Charts | AOL Stock Ticker | AOL Stock Screener
Google search for
stock
market game or
fantasy
stock market game will return many existing stock market
games.
Below listed are some examples:
① StocksQuest · A Global Stock Market Game
② Wisconsin SMS ·
Stock Market Simulation/Stock Market Game
High
school stock market simulation/game to teach students basic economic
and financial skills. Test investment theories, learn about the
financial markets, ...
③ Stock Market Game · Investopedia’s Simulator
④ StockTrak · Global Portfolio Simulations
⑤ The Stock Market Game
The Stock Market Game (SMG) gives students the chance
to invest a hypothetical $100000 in an on-line portfolio. They think
they’re playing a game...
⑥ Oanda FXTrade /
FXGame
Here you can open a
“demo” trading account and learn the mechanics of trading.
Oanda FXTrade supports trading in foreign exchange markets, but the
mechanics is simular for other financial securities.
Look for a
link to “FXGame”, which replicates their real trading
platform. You can use it at no cost for as long as you like and test
your trading skills.
⑦ MoneyBhai
· Virtual stock
game
Also relevant:
Playing
the Market, These Kids Are Losing a Lot of Play Money
by Jennifer Levitz; October 29, 2008
The game is run by the Securities Industry and Financial Markets
Association, Wall Street's biggest trade group. Schools pay about $16
a team for a curriculum that includes access to a computer system that
executes the simulated trades and ranks teams by states and age
group. At the end, the teams in each state with the best returns take
home bull-and-bear trophies, gift certificates or other prizes.
Check also: Virtual
Stock Market at NUI Galway to Understand 'Boom and Bust' Cycles
National University of Ireland, Galway (03/24/2009)
Researchers at the National University of Ireland, Galway (NUI Galway)
have developed a virtual version of a stock market in an effort to
better understand the underlying factors of boom and bust cycles, as
well as the interactions of human and software agents. Ten companies
are listed on the Virtual Stock Market and four types of computer
agents trade in the market. Students who want to test their
investment strategies are given virtual currency to purchase shares.
"The main objective of our research is to understand the generating
processes that underlie the empirical facts of the real world
financial markets," says NUI Galway professor Srinivas Raghavendra.
"We approach this problem from an experimental economics point of view
as we believe that experiments with human agents could provide us with
insights or testable hypotheses to further our understanding of the
dynamics of financial markets." A multidisciplinary research team
from the J.E. Cairnes School of Business and Economics, the Digital
Enterprise Research Institute, and the Computer Integrated
Manufacturing Research Unit collaborated on the project. The
researchers will present their findings to the Society for
Computational Economics in July at the 15th International Conference
on Computing in Economics and Finance in Sydney, Australia.
Wall Street's high-tech war on
investors
By Michael Brush, MSN Money, Company Focus, 8/28/2009.
A PC can be an investor's best tool. But as a vast
high-tech arms race unfolds, big brokers and hedge funds are using
their computers to take unfair advantage. …
In fact, computers are ruining investing for the average investor.
… you might be surprised at what they do with those systems to
get an edge over you:
• Scour the markets for opportunities and make millions of
trades in less time than it takes you to hit the "enter" key.
• Take advantage of exclusive "flash orders"
to trade stocks at better prices than you'll ever see.
• Fish for profitable stock bargains inside exclusive trading
venues called "dark pools," where you'll never swim.
Google introduced a free Display Ad Builder that lets anyone use simple building blocks to create an ad. As of June 2009, some 80% of those using it had never bought a display ad before.
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Last modified: Fri Feb 15 20:49:10 EST 2008 Maintained by: Ivan Marsic