• DUE NEXT MEETING:

  • If you wish to compete in trading this quarter, create your team and think of a team name (will be dropping form this weekend)

  • Create an account in Tradingview, we will be performing most of our market analysis there.

• Terms:

  • Investments/Trading: buying something with the expectation that you can sell it off for a higher price in the future

  • Market Analysis: determining whether an investment can increase in price

  • Paper Trading: investing with fake money

• Which will future meetings be about?

  • Meeting 1: Introduction to the finance club

  • Meeting 2: Navigating Tradingview and placing your first trade

  • Last meeting: Summary and paper trading competition winners!

  • All other meetings: Exploring different techniques to invest (will be posted on this page) 

• Paper trading rules

  • Teams of up to 4, or individually

  • All teams start with $100,000 of virtual funds

  • Teams can make one trade (investment) per week, can choose to sell anytime

  • There will be weekly meetings to discuss progress and make analyses (you don't need to be spending much time at home on our club)

  • There will be an open form to submit investments after next meeting

• Why don't we invest real money?

  • Not legal unless you are over 18 OR have parental supervision

  • Beginners are likely to lose most of their money

  • We can practice riskier investment strategies with fake money

• DUE NEXT MEETING:

  • Form a team (or sign yourself up) for the trading competition, and register using this form.

• Teams

  • Maximum 4 people per team, minimum 1 (we recommend 2 or 3)'

  • Team names are 30 characters max, emojis are allowed

  • Come up with a username and password for login (we will be discussing this further next meeting)

• Investing 

  • Using mid to long-term investments 

    • Mid term: few weeks

    • Long term: months to years

  • Focuses on qualitative data (i.e. Apple's new iphone 17 just released, market might go up)

• Trading

  • Short-term investments, often automated

    • Average trader holds an asset for about 22 seconds

  • Focuses on quantitative data (i.e. technicals, statistics, patterns)

• Stock

  • Partial ownership of a public company (i.e. if there are 100 shares of Apple stock and you have 1 share, you own 1% of Apple)

  • When you buy a stock and the company does well (appreciates), you can sell your stock and make a profit (benefits you)

  • When stock prices go up, it makes the company seem more valuable and attracts investors (benefits companies)

• Terms

  • Volume: Amount of stock publically traded

  • Market Price: Current value of a single share of stock

  • Market Capitalization Value of a company's shares (# of stocks * market price)

  • Shareholder: Someone who owns a stock of a company

• Types of Stocks

  • Common: Basic ownership of a company

  • Dividend: Shareholders are paid "dividents" or additional cash periodically, typically from stable, profitable companies

  • Blue Chip: Shares of large, reputable, and financially sound companies

  • Large Cap: Companies with market cap over $10 Billion

  • Mid Cap: Companies with market cap between $2 Billion and $10 Billion

  • Small Cap: Companies with market cap under $2 Billion

  • Penny Stock: Very low-priced, high risk stocks (high risk high reward)

• Candlesticks

  • Common type of chart to show price of stock over a time period (i.e. 1 hour, 1 day, 1 week)

  • Contains the following information

    • Open Price: market price at beginning of period

    • Close Price: market price at end of period

    • High Price: highest market price during period

    • Low Price: lowest market price during period

• DUE NEXT MEETING:

  • Reply to our team post with your team name, what you will be investing in, and how much you want to invest

  • No crypto ETFs for now

• Weekly Recap

  • Trump won the presidential election on November 5, 2024

    • Market anticipates major policy changes and volatility has surged after election outcome (generally positive)

  • Federal reserve cut rates from 4.75-5% to 4.5-4.75% --> Market optimism due to easier borrowing

  • S&P has entered bull market (due to election)

  • Bitcoin has reached $99,000 (record high)

• ETFs (Exchange-traded fund)

  • A bundle of stocks (automatic diversification)

  • SPDR S&P 500: Blend of top 500 companies in the US

  • NASDAQ-100: 100 largest non-financial companies on NASDAQ i.e. Apple, Microsoft, etc.

  • Investing in one ETF = Investing in all of these stocks simultaneously

• Exotic types of ETFs

  • Inverse ETFs: Moves in opposite direction of asset

    • i.e. ProShares Short S&P 500 --> Every time the S&P goes down by 1%, this goes up by 1%

  • Leveraged ETFs: Amplifies returns of asset

    • i.e. TQQQ --> Every time NASDAQ-100 goes up by 1%, TQQQ goes up by 3%

• REITs (Real Estate Investment Trusts)

  • Companies that own, operate, or finance real estate

  • Investing in these companeis allow you to profit from real estate without buying physical land

• ADRs (American Depositary Receipts)

  • Allows you to invest in stocks in a different nation

    • i.e. Lets you invest in Alibaba without dealing with foreign currency and markets

• IPO (Initial Public Offering)

  • The first time a private company becomes public

  • You can buy more stocks of the company and make huge profits if the company goes big, but also carries risk as new companies have more risk of downfall

• SPACs (Special Purpose Acquisition Companies)

  • Companies that merge with private companies to take them public

  • You can invest in private companies before they become public 

• DUE NEXT MEETING:

  • Reply to our team post with your team name, what you will be investing in, and how much you want to invest

  • You may invest up to three stocks this week, no crypto ETFs

• Weekly Recap

  • Bitcoin hits $100,000

    • Demonstrates bitcoin's growing use as a store of value (one of the core determinants of true "money") rather than just a speculative token

    • Influenced by the development of crypto-friendly leadership after US election

  • Alphabet faces issues with Google Chrome

    • Competition with ChatGPT

    • Antitrust case involving Chrome's market dominance in the browser market (Alphabet is likely to have to sell Chrome)

  • NVIDIA News

    • NVIDIA owns 84% of the global GPU market (used for AI development, rendering, and gaming), and is facing antitrust issues in the EU

    • Amazon releases AI chips to compete with NVIDIA

    • NVIDIA partnering with X to supply GPUs for Elon Musk's supercomputers

  • South Korean Situation

    • President Yoon declares martial law for a day before it was overturned

    • Causes speculation about the democratization of South Korea

    • SK stocks plummet, Samsung goes down 4% in one day

• Investing by Sector 

  • The stock market is a huge place and it's impossible to know every stock, especially companies outside your area of expertise

  • Investing by sector is a method of investing based on markets that you are familiar with and thereby better understand the effects of events on their dynamics

  • Technology

    • Software, hardware, and IT services

    • i.e. Apple, Nvidia, Alphabet

    • Influenced by regulations, technological advancements, and competition

  • Communication Services

    • Communications, media, entertainment

    • i.e. AT&T, Disney, Tencent

    • Influenced by releases of major media and games, societal trends, government regulations, and politics

      • We invested in DJT last week because Trump's election (politics) was likely to create confidence in his own media stock

  • Energy

    • Production, exploration, distribution of energy

    • i.e. Chevron, ExxonMobil, NextEra

    • Influenced by global energy demand and geopolitical events (i.e. wars)

  • Materials

    • Raw materials and chemicals

    • i.e. Dow, Sherwin-williams

    • Influenced by demand of construction and manufacturing, other financial sectors, and geopolitical events

  • Industrials

    • Utilization of raw materials (i.e. manufacturing, construction)

    • i.e. Boeing, Caterpillar, Lockheed Martin

    • Influenced by technological advancements and politics

  • Healthcare

    • Products and services that maintain or improve health

    • i.e. Johnson&Johnson, Pfizer, UnitedHealthcare

    • Influenced by epidemic outbreaks, regulations, and technology

  • Financials

    • Provide financial services or manage money

    • i.e. JPMorgan, Goldman Sachs, Berkshire Hathaway

    • Influenced by interest rates and monetary policy

  • Consumer Discretionary

    • Wants

    • i.e. Amazon, Nike, Starbucks

    • Influenced by societal trends and economic health

  • Consumer Staples

    • Needs

    • i.e. Walmart, Costco

    • Influenced by economic cycles and regulation, but rarely has large movements

• DUE NEXT MEETING:

  • Invest in a stock that is from a North American exchange

  • Reply to our team post with your team name, what you will be investing in, and how much you want to invest

• Weekly Recap

  • UnitedHealthcare CEO Brian Thompson assassinated in Manhattan, Luigi Mangione is main suspect

    • Stock dipped 12% since this incident

  • Bank of Canada cuts interest rates from 3.75% to 3.25%

    • Made it easier to borrow money, Canadian dollar strengthened

  • Elon Musk's net worth hits $400 billion

• Stock Exchanges

  • Stock exchances = marketplace where people buy and sell shares

    • Previously done on a physical trading floor, now mostly done digitally

  • Companies must meet certain criteria (i.e. revenue, market cap) to be listed on an exchange

  • Toronto Stock Exchange (TSX)

    • Valued at $3 trillion

    • Main index is the S&P/TSX composite, tracks top Canadian Companies

  • New York Stock Exchange (NYSE)

    • Largest stock exchange valued at $27 trillion

    • Main index is the S&P 500

  • National Association of Securities Dealers Automated Quotations (NASDAQ)

    • Valued at $23 trillion

    • Main index is the NASDAQ Composite

    • Fully electronic (no trade floors like the NYSE)

  • London Stock Exchange (LSE)

    • Valued at $4 trillion

    • Main index is the FTSE 100, tracks top 100 UK companies

  • Tokyo Stock Exchange (TSE)

    • Valued at $6 trillion

    • Main index is the Nikkei 225, tracks top 225 Japanese companies  

  • Hong Kong Stock Exchange (HKEX)

    • Valued at $5.5 trillion

    • Main index is the Hang Seng index, tracks 50 major companies in China

  • Euronext 

    • Valued at $7 trillion

    • Multiple main indices based on country (i.e. AEX in the Netherlands, CAC 40 in France)

    • First cross-border stock exchange

  • Bombay Stock Exchange (BSE)

    • Valued at $3.5 trillion

    • Main index is the Sensex, tracks 30 major Indian companies

    • Fastest trading platform in the world with latency of 6µs

Coming Soon :)