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FIN 552 Group Assignment - Bursa Marketplace Stock

Trading GAME
Finance investment (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

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UNIVERSITI TEKNOLOGI MARA, KAMPUS BANDARAYA MELAKA

BACHELOR OF BUSINESS ADMINITRATION (HONS) FINANCE

INVESTMENT AND PORTFOLIO ANALYSIS (FIN552)

GROUP ASSIGNMENT: BURSA MARKETPLACE STOCK TRADING GAME

PREPARED BY:

SITI NURUL ASYIKIN BINTI HASSAN (2020993671)

NORKAMARIAH BINTI MOKTAR (2020971703)

IRA NATASYAH BINTI ISMAIL (2020969205)

CLASS:

BA 242 4D

PREPARED FOR:

MISS AMIRAH HAZIMAH BINTI BORHANORDIN

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TABLE OF CONTENT

No Contents Page
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1 INTRODUCTION

2 SECTION 1: INVESTMENT RECOMMENDATIONS

1.0 LISTS OF STOCKS

2.0 OVERALL TEAM STRATEGY

3.0 WHAT SECTORS DOES YOUR TEAM PUT FORWARD TO INVEST?

4.0 WHAT INDUSTRIES DOES YOUR TEAM SUGGEST TO INVEST?

5.0 WHAT STOCKS DOES YOUR TEAM RECOMMEND TO INVEST?

6.0 OVERALL TEAM SUPPORTING EVIDENCE

6.1 TECHNICAL ANALYSIS

6.2 SWOT ANALYSIS

3 SECTION 2: TEAM INVESTMENT DECISION PROCESS

1.0 HOW DID THE TEAM MAKE INVESTMENT DECISIONS AT THE

BEGINNING?

INTRODUCTION

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SECTION 1: INVESTMENT RECOMMENDATIONS

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Bursa Marketplace is a Malaysian stock exchange that allows investors to buy and sell shares
which they provide in trading for equities ranging from stock, warrant, REIT, ETF and
commodities. Since none of us have any prior experience with trading, hence a stock will be a
good start as our trading instrument. We choose not to invest all the money in stock which we
only invest on half of the money and the other half we keep it in cash to cover any losses that
might happen later. It is very high risk for a beginner like us to invest all the money. Although
we do not get higher returns, it is to make sure that our investment is consistently generating
returns over a long period of time.

1.0 LISTS OF STOCKS

In Bursa Marketplace, there are many sectors such as Construction, Property, Financial
Services, Health Care, Technology, Industrial and Consumer Products & Services, Energy
and Telecommunication. However, we just focus on few sectors which are:

DISTRIBUTION PRODUCER PROCESS COMMUNICATIONS

SERVICES MANUFACTURING INDUSTRIES

COMPUGATES PASUKGB GOCEAN M3TECH

MNC WIRELESS

HEALTH ELECTRONIC COMMERCIAL TECHNOLOGY

TECHNOLOGY TECHNOLOGY SERVICES SERVICES

TOP GLOVE ITRONIC TFP SOLUTION MTRONIC

VSOLAR

Table 1: List of Stocks

b S
The listed stocks above are traded after thorough research was conducted in order to
gain reliable information about the stocks. Most of the purchased stock are mostly from the
penny stocks, which are the stocks that are lower than RM 1.00. While trading the stocks, we
had developed two main foundations called fundamental analysis and technical analysis.

We are able to gain profit through penny stocks trading. Furthermore, the stocks are
bought after we conduct the research with financial and technical analysts in Bursa

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Marketplace. All the technical analysis such as price, volume, trend and momentum were
included in research.

2.0 OVERALL TEAM STRATEGY

i) Make use of all the learning tools on the Bursa Marketplace website.

Bursa classroom and Bursa Academy, which selected instructors share their expertise
in share investment and futures trading through interesting and engaging training materials.

Screener is one of the functions that allows us to filter stocks based on using a broad
range of financial parameters. This feature may assist our client in sorting through and
screening the stocks that match our trading methods.

ii) Utilize the Mirror, Learn and Trade (MLT) by Bursa Marketplace.

This gives the investor the opportunity to see and learn from the licenced analysts. As
it highlights the possible stocks that may produce potential profits, we will be able to verify
the appropriate trading method and will obtain the ideas to design trading strategies. We will
get instant access to the most recent learning resources from professionals if we use this
option.

iii) Learning from Reliable Market Insight and Expert Opinion.

To receive the most up-to-date information on the stock market, we can refer to news
from The Edge or Investor Digest. Furthermore, Bursa Marketplace has a News Section
where traders may read the latest news regarding the company's performance in order to be
more aware of fluctuations in stock prices. Then we'll be able to devise a trading strategy. We
will also take part more in the YouTube and Telegram groups with skilled traders to gain
insight into the real market from their viewpoints.

iv) Watchlist for Trading Portfolio Management

The Watchlist is quite useful since it allows us to group all of our selected stocks
together and monitor the one-day changes in stock price, percent change in stock price,
reference price, and changes in reference price. The real-time data change will aid us in our
trading decisions.

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3.0 WHAT SECTORS DOES YOUR TEAM PUT FORWARD TO INVEST IN AND
WHY? HOW MUCH SHOULD BE INVESTED IN EACH SECTOR AND WHY?

Our team has put forward to invest in the technology and consumer goods sector. This
is because, we assume that both sectors will give us higher profit as these sectors are the most
active sector during this pandemic of Covid-19. The technology sector is a group of stocks
that includes computer hardware manufacturers as well as software and electronics firms.
They also offer support and services for their goods. The majority of tech firms also provide
information products and commercial data processing services. Then, the consumer goods
sector is made up of stocks and companies that sell goods to individuals and homes rather
than to manufacturers and industries. These businesses create and sell items that are meant for
the consumers' personal use and delight. Food manufacturing, packaged products, clothes,
drinks, vehicles, and electronics are all part of this industry. We believe that both sectors will
become very active as we know that many people need to use technology to do their work
especially during pandemic Covid-19. Other than that, the consumer goods sector is also one
of the most active sectors during this pandemic as the products sold are closely related to the
basic needs of every human being.

However, we only invest 50% of our money into these sectors and keep the stock at
least for one weeks. The main reason for us to invest and keep these stocks for a long period
compared to the stocks from the other sectors is because we believe that we will gain more
profit when we hold the stock from those sectors.

4.0 WHAT INDUSTRIES DOES YOUR TEAM SUGGEST INVESTING IN AND

WHY? HOW MUCH SHOULD BE INVESTED IN EACH INDUSTRY AND WHY?

For industries, each of us has planned to invest in the healthcare industry and
technology industry. From our observation, these two industries also are the safest industries
to invest in. For instance, significant progress has been made in the healthcare industry,
allowing humans to enjoy healthier lives with longer lifespans. However, the recurrence of
global pandemics such as Coronavirus acts as a reminder of our need in the healthcare
industry. Despite preventative methods such as vaccines, society will continue to encounter
new illnesses that require the use of medicines in healthcare. Thus, healthcare will be a
relatively safe sector for decades.

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As we know, technology has always been at the center of innovation, especially now
that we live in the digital and information era. Computers, phones, IT, and social networking
are all part of our everyday lives, and as the globe gets increasingly networked, they will
become much more so. There are ever-growing technology companies looking to further
advance our society in meaningful and creative ways. Therefore, this sector will always exist
in various forms as humanity continues to move forward.

In each industry, we only invest 50% of our money. This is because, after we were
making several discussions and research, we can see that there are some industries that do not
give us profit and will take a long time for the price to change. Other than that, we also have
suffered loss for a few times during our trading session.

5.0 WHAT STOCKS DOES YOUR TEAM RECOMMEND INVESTING IN AND

WHY? HOW MUCH SHOULD BE INVESTED IN EACH STOCK AND WHY?

COMPUGATES

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GOCEAN

VSOLAR

We choose these companies’ stock because the market price of these companies'
shares is less than RM1.00 which is classified as penny stocks. Due to the extreme volatility
of this stock, it must be constantly and regularly monitored. Because of its dangerous
behaviour, all master traders advise us not to invest in penny stocks. Pump and Dump tactics
are used to make money or profit from penny stocks. Essentially, a trader will try to buy a
penny stock because it is inexpensive, then get other traders to do the same. Nonetheless, our
high-risk tolerance qualifies us as risk takers for these stocks. Buying these stocks in large
quantities and then selling them when the prices increase is one of the strategies.

For each stock, we will invest 50% and buy with large volume. This is because we
will always keep another 50% of our money in cash to cover any of our stock loss. From this
strategy, we also tend to make profit and prevent our cash from suffering any losses.

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6.0 OVERALL TEAM SUPPORTING EVIDENCE

6.1 TECHNICAL ANALYSIS

The price of each stock that we traded is determined by numerous variables. Indicators like
Moving Averages, MACD, and Stochastic are among the variables that influence the price of
each stock.

Based on the above chart, we have used Moving Average (MA) to determine our chart
pattern. M3TECH stock price is an uptrend movement from the middle of April until July. As
we can see, the price will rebound to an upward movement when it reaches the support level.
This means that the market is bullish and it is the tendency for us to make profit. However,
MA line also indicates a support and resistance level. Therefore, when the price breaks the
support level, we have decided to sell our stock to prevent any losses as it indicates that the
price will move downward and we also will buy back the stock when the price breaks the
resistance level as it indicates that the price will move upward.

Next indicator that we have used is Moving Average Convergence Divergence

(MACD). MACD is a trend-following momentum indicator that shows the relationship
between two moving averages of a security’s price. Based on the MACD indicator, we were
able to identify the best buy and sell signal. For instance, the market will become bullish

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when the histogram below zero line converges towards the zero line. The price also will start
to increase when MACD crosses above the Signal Line at zero histogram. Thus, it indicates
the best buying signals for us to enter the market. However, when the histogram above zero
line converges towards zero line and MACD also will cross below Signal Line at zero
histogram. It indicates that the market will become bearish and the price pattern will change
and move down further.

Lastly, we also have used a stochastic indicator to determine the best buying and
selling signal for our stock. Stochastic is a momentum indicator that compares a security's
closing price to a range of its prices over a certain time period. By changing the time period
or taking a moving average of the result, the oscillator's sensitivity to market changes can be
reduced. It is used to produce trading indications for overbought and oversold conditions.
Therefore, from this indicator, we identify that the stock is overbought when the blue line
crosses the red line above the upper limit of 80% and the stock is oversold when the blue line
crosses the red line below the lower limit of 40%. Thus, we have decided to enter the market
when the stock is oversold as it indicates a bullish reversal pattern and exit the market when
the stock is overbought as it signifies for the market exhaustion and indicates a bearish
reversal pattern.

6.2 SWOT ANALYSIS

I. STRENGTH

Although investors have long debated the merits of technical vs fundamental research,
technical analysis is the way to go for trading or short-term trading. Technical analysis is the
study of price charts and, more broadly, any data that can be extracted from them, such as
volume analysis, cycles, trends, and statistics. Price changes are forecasted using technical
analysis.

The use of Technical Analysis Tools is the first strength we inferred for this project.
Technical Analysis tools alert us to early warning signs of a reversal and allow us to examine
statistical trends such as price movement. As a result, we might use those indications to
determine when to purchase and sell equities, giving us a large profit margin to trade on.

Furthermore, the second method is to invest in huge quantities in order to optimise the
profit. With a capital of RM1,000,000, we chose to invest in firms with a low market value.

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This is because when we invest in a low-cost stock, we can purchase a big number of shares,
despite the fact that buying a large number of shares is riskier, we can make significant
profits.

II. WEAKNESS

Our trading techniques have a flaw in that we are overly reliant on what other people
suggest to purchase or sell. Although the reason for the price increasing or dropping is
uncertain, we are often influenced by what others are saying.

Moreover, due to other classes and duties, we were unable to commit our full
concentration to this trade and to evaluate price movement and the market. With the passing
time, we were able to learn from our mistakes by effectively managing our time.

As traders, we may make mistakes due to our emotions. We have a tendency to buy
stock when they are at their top as a result of news or market enthusiasm. Nothing we know
is that this is only a speculative attitude induced by the news, which will have a negative
influence if we do not have a solid trading strategy in place.

SECTION 2: TEAM INVESTMENT DECISION PROCESS

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1.0 HOW DID YOUR TEAM MAKE INVESTMENT DECISIONS AT THE

BEGINNING OF THE COMPETITION?

Maria Table Excel

Ira Table Excel

Our deal got off to a rocky start due to our lack of experience with stock trading. We
rushed into buying numerous different types of stocks without conducting enough research,
which resulted in initially poor performance. To get back on track, we sought guidance from a
group of experts and friends on how to manage the market. Besides that, we also have
recorded every trade that we have made. This is because, as new traders we always feel
unsure with the decisions we take. In order to do that, we have taken a screenshot of our
trades so that we can easily review our trading performance at a later time.

Furthermore, we also determined stock’s price by market demand and supply. To be

more specific, we studied fundamental analysis, technical analysis, market and investor
sentiment analysis, and expert opinion when deciding the price of the stock that would be
traded. We'll show you how we incorporated all of the elements in our trading plan in the
sections below.

We utilised Trading View as our platform to find stocks that fit our risk appetite by
entering characteristics such as stock price below RM1 and P/E ratio under 10, which we
considered to be good stocks to be traded. After screening all the stocks, COMPUGATES was
the best stock as the stock is considered as penny stock and it shows a sideway volatility for a
consistent period.

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Based on the chart above, it shows that the price has a strong support level at RM0.02
as the price will rebound when it touches this level and will rise frequently at resistance level
RM0.025 in a short period of time. As a result, we chose to trade this stock by continuously
monitoring the market from Bursa's opening hour which is from 9.00 a.m until closing hour
at 5 p.m, as this stock was heavily traded at that period.

In addition, from the expert opinion by DDNK and other master traders, they give
their tips to buy in large volumes. As a result, we purchased almost 1 million
COMPUGATES. So, 1 bid increments of RM0.005 resulting in RM0.020 to RM0.025,
multiplied by the millions of units we purchased, brought us a lot of luck. For portfolio
management, we used the same technique for other stocks. Hence, large profit was realized
as the cost per unit of the stock was low compared to the large volume we were trading.

2.0 HOW DID YOUR TEAM MAKE INVESTMENT DECISIONS AT THE END OF
THE COMPETITION?

Maria Table Excel

Ira Table Excel

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After a few weeks of making easy money in the stock market using the same
technique, we decided to take the next step in sharpening our technical analysis abilities by
trying a genuine trading plan that a real trader uses after analyzing their trading pattern.
Before entering the market, we must identify a few elements in our trading plan. This may be
accomplished by determining our trading objective, such as the number of bids or profit we
desire, as well as the timeframe (intraday or weekly trading), Take Profit price (TP), Cut Loss
price (CL) and also Risk and Reward ratio.

Based on the above chart, M3TECH is one of the most profitable companies in which
the price has cut the Moving Average line (blue line) from below in the middle of May.
Therefore, it gave us a sign that the price pattern will become bullish as it breaks the MA
resistance level. We've set our TP and CL, and we've traded it well away from its resistance,
so we won't have to worry about volatility, and we'll have the best risk-reward ratio possible.
As we know, profit of trading can be calculated using the Bid calculation, 1 bid is equal to
RM0.005. Throughout this method, we were able to maximize profits in terms of BID
because the share price increase is at the level of one bid RM0.005 like the normal small cap
shares we traded. Therefore, we were able to set a target to sell our stocks at the best price.

At the end of this trading session, we realized that having such a strategy plan would
help us to become disciplined traders. By having this trading plan in our strategy, we would
not have to be a “screen slave” that always has uncertainty in front of the trading platform
full of emotion, fear and greed. This is because we have a trading plan to follow.

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3.0 DID YOUR TEAM USE ANY TOOLS (I.E. SWOT, FINANCIAL RATIOS) IN THE
ANALYSIS PROCESS?

Generally, our team has used three different tools which are fundamental analysis tools that
tell us about the model and management of each business. From this, we were able to analyze
the business background and the performance of each stock that we want to trade. Next, the
major tools that we have used are technical analysis tools as we need to study the chart
pattern of every stock before we start our trading. Throughout this method, we can identify
the price movement whether it will move upward, downward or sideways. The last tool that
we used is tools for news gathering as we will always follow the current news about the
company through social media and company websites so that we can notice whether the
company’s stock is best to buy or sell during that time.

4.0 WHAT WOULD YOUR TEAM HAVE DONE DIFFERENTLY IN THE

INVESTMENT DECISION PROCESS?

Task and Skills

In order to make a decision each member has been given a different task which is to
do in-depth study on stock trading expertise in order to enhance our chances of profit and
reduce trading risk. The investigation will focus on the following topics:

 Fundamental Analysis (Asyikin)

Asyikin will conduct fundamental analysis by doing some research on the internet
about the stock that we want to trade. Fundamental analysis will evaluate a stock's actual and
intrinsic worth in contrast to its present market traded price. The macro and microeconomics
factors, which include economic and industrial performance, will be examined. This will be
done using the top-down approach by analyzing the economic series that consist of leading
and lagging indicators with other monetary variables such as interest rates, GDP, and other
monetary and fiscal policies. The stocks' performance and market capitalization will also be
computed in order to classify them as Blue Chip, Mid Cap, or Small Cap companies. In
addition, fundamental scores which include information such as earnings per share and price
earnings ratio, will be used in this approach to determine if stocks are undervalued,
overpriced, or fairly valued.

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 Technical Analysis and Chart Pattern (Maria)

Next, Maria will conduct the technical analysis and observe the chart pattern for every
stock that we want to trade. By using this technique, we were able to make a prediction for
the price on the next day whether it will increase or decrease. Thus, Maria will make a
decision for us to confirm whether to buy, sell or hold the stock as she will look for the chart
pattern of the company. This technique shows us that the chart pattern is not always in an
uptrend line or downtrend line. Sometimes, the chart pattern will be a correction pattern or
known as a sideways pattern. Sideways pattern also is a turning point for the price which
indicates that the price will make a reversal pattern from the previous pattern. Therefore, we
tend to make profit by looking at this chart pattern.

 Following News and Economic Updates (Ira)

Lastly, Ira will follow up the update of the company and tell us the news about the
company. The purpose is to know which companies will become profitable or unprofitable.
Therefore, we will be more alert about a corporate issue and how the current economic
climate has affected the firm or the stock price in the market. This strategy also helps in the
analysis of the performance of the company and it is suitable for investor’s needs in achieving
their objective. With this, we can double confirm whether to buy, sell or hold our stock.

Point 5: What did you learn about the investment decision-making process? - DONE

 Draw a personal financial roadmap.

Sit down and take a look at your complete financial condition before making any
investment decisions, especially if you have never established a financial plan before.
Identifying the goals and risk tolerance, either on your own or with the assistance of a
financial advisor, is the first step to effective investment. There is no guarantee that your
investments will provide a profit. However, if you learn the facts about saving and investing
and stick to a smart strategy, you should be able to build financial security and enjoy the
benefit of money management and firm performance.

 Ensure you are equipped to not repeat the mistake.

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After the poor performance, do not even turn to the television or an internet forum for online
advice after a terrible performance. Make changes to the significant asset purchases so that
we can talk about how it impacts your lives. Make sure to familiarize yourself with all of
your tax-saving alternatives, and start investing early in the year rather than later in the year,
when it is more likely to make mistakes. Learn how to invest the rest of the retirement
benefits at a higher rate of return, as well as learn the basics. Make certain you have gotten
the most out of your bad decision by learning from it.

 Avoid circumstances that can lead to fraud.

The scammer frequently use a widely reported news article to attract potential investors and
make their opportunity appear more legitimate. Before investing, it is recommended that you
ask questions and verify the answers with an unbiased source. Always take your time and
consult with reliable friends and family members.

Section 3: TEAM DYNAMIC

3.1 SUMMARY OF RESEARCH BY EACH MEMBERS

During Asyikin's fundamental analysis investigation, they discovered that knowledge

regarding a company's financial statements is critical in both stock selection and portfolio
management. Market capitalization is critical when deciding which stock to buy based on our
risk-to-reward ratio.

Blue Chip stocks are those that have a market capitalization of more than RM 1
billion. The term "medium cap" refers to stocks with a market capitalization of between RM
100 million and RM 1 billion. Small caps, on the other hand, will have a market
capitalization of less than RM100 million. In theory, taking into account a P/E ratio of 10 to
20 and positive EPS for all Blue Chip and Mid Cap equities will make these stocks desirable
to trade.

Maria will give an update on their Technical Analysis (TA) and Chart Pattern
discoveries. This is one of the most in-demand trading and investing talents, since anyone
who can master the art of chart reading and combine it with the right approach and mindset
may make a fortune in the financial markets.

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In technical analysis, Maria will look at the price and volume movement. As we all
know, when the price and volume both rise at the same time, it suggests that the market will
become bullish. However, if the price increases but the volume decreases, it signifies that the
market will become bearish as the traders have lost their interest to buy the stock from that
company. She also utilizes indicators such as the moving average to determine whether yes or
not the price has broken through the moving average line. We can determine the optimal
purchase or sell price for the stock we wish to trade based on this information.

Finally, through research done by Ira, we know that several businesses have been
negatively impacted by the Covid-19 outbreak, including the airline industry, sports and
entertainment, and travel and tourism. As a result, we avoid trading in these businesses
because it will result in losses. Healthcare, technology, consumer products and services, and
transportation and logistics, on the other hand, are preferred since they are favorably
influenced by the pandemic. As a result, these industries accounted for the majority of our
stock purchases.

3.2 Challenges

Accordingly, several team members described a variety of problems that came as a result of
the pandemic, making effective cooperation difficult. The biggest challenge is the
communication barrier. Aside from adopting new forms of communication for example,
Google Meet and WhatsApp, the communication changes in terms of both quantity and
quality. What is most noticeable about communication changes is that some teams
communicated more, others communicated less due to the transition to online learning. There
are no physical meetings with team members, and communication is at an all-time low
depending on the online meeting only.

3.3 Solutions

When there is a challenge, there must be a solution to every problem. Even though the
pandemic has made our team difficult to communicate, yet we still managed to discuss our
assignment well. Before the meeting is held, there will be an agenda on what we want to do at
every meeting. We are ensured in every meeting to be taken seriously. To be more focused,
we use all the platforms such as Google Meet, Whatsapp and also we use the trading view to
look for the latest update. As for the assignment, we do not have any different opinions and

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arguments as we can work very well to complete this assignment. We tend to discuss
thoroughly until we get the final decision.

Section 4: TAKEAWAYS OR ANYTHING TO BE REMEMBERED FROM THIS

GAME.

We would go further into technical analysis if we were to play the trading game again.
Previously, we had primarily relied on the attempted “buy cheap, sell high” method. In
addition, we applied fundamental research to purchase penny stocks, which are very
speculative. Identifying the risk-return profile is essential in determining investing objectives.
We have decided on how much risk that we are willing and able to take on, as well as how
much volatility we can handle. This is the key in developing a portfolio strategy that can
produce the needed returns while posing a manageable risk. Despite the fact, these techniques
made us a lot of money, owing to time and energy restrictions, we were unable to conduct in-
depth study on the technical analysis of the stocks before purchasing them. We intended to
learn more about the technical analysis approach employed by specialists like Kenanga
Research and Affin Hwang Investment by reading more about it, dissecting it, and analysing
it in depth. The management process begins once a portfolio strategy has been implemented.
This involves keeping an eye on the investments and comparing the portfolio's performance
to industry benchmarks. Every day, we'll check to see if anything has changed significantly.

Furthermore, we would like to learn more about trading with pairs trading techniques.
One of the most well-known instances of a mean-reversion technique is pairs trading. The
initial stage in pairs trading is to choose a pair of equities with highly linked historical
performance, followed by monitoring how the correlation between the two stocks evolves
over time. When mispricing is detected, the trader sells short the overpriced stock and buys
the underpriced stock. We think that by doing so, we will have a greater understanding on
how industry participants' business practises impact stock prices.

Section 5

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Our total performance in this trading game, we believe, was excellent. We learned a lot about
stock trading, which is really useful in real-life situations. We were able to make numerous
profitable investments during this time by leveraging extremely volatile equities such as
penny stocks. It has also increased our investment strategies and given us the confidence to
increase the potential risk in our stock portfolio. This group stock trading simulation course
has provided us with priceless skills and understanding that will assist us in becoming great
investors or traders in the future.

· Overall Trading Performance

Initial Cash Portfolio Game Value Net Profit ROI %

Team Investment Available Value (RM) (RM)
Members (RM)
(RM) (RM)

Maria 1,000,000 1,689,270.50 0.00 1,689,270.50 689,270.50 68.93%

Ira 1,000,000 1,441,158.50 0.00 1,441,158.50 441,158.50 44.12%

Asyikin 1,000,000 1,075,000.00 0.00 1,075,000.00 75,000.00 7.5%

Total 3,000,000 4,205,429.00 0.00 4,205,429.00 1,205,429.00 40.18%

Net Profit = Game Value – Initial Investment

Return On Investment (ROI) = Net Profit X 100

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 lOMoARcPSD|20576429

Initial Investment

At the end of this competition, we tend to make profit from every stock that we have
traded. Total net profit of RM1,205,429.00 managed to be realized throughout the whole of
our trading journey.

The return on investment (ROI) is the gold standard in trading and investing since it
calculates the percentage change in our portfolio. It makes no difference how much money
someone has to invest, the percentage of return on investment (ROI) calculates and displays
the investment's total performance. An outstanding ROI has also been realized from the initial
investment of RM1,000,000.00 given. An average of 13.39% ROI from each member does
indicate that our group has learnt a great strategy in these stock trading games.

Furthermore, our team managed to make a profit even though Asyikin got a little profit. This
happened because Asyikin often keeps stock for too long and with this, we have learned that
we cannot keep stock for too long in order to gain profit.

Conclusion

To summarize, the simulation game on Bursa Marketplace will allow us to simulate a

real stock market experience without paying any actual costs. This hands-on experience will
provide insight into how the stock market operates and how companies are listed on the
exchange. Beginner traders will always find it difficult to choose a stock, but with a thorough
business research and stock valuation in Bursa Malaysia utilizing all of the tools and
indicators available, they will be able to solve this problem. We are expecting that we will
soon have the opportunity to create our own Central Depository System Account (CDS) and
trade in the actual market. These experiences would provide us with moral support to trade
with the goal of profit and loss minimization.

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