On the 26th of July you came to Investing Money Ma
This essay On the 26th of July you came to Investing Money Ma has a total of 1133 words and 6 pages.
On the 26th of July you came to Investing Money Management with $50,000 dollars with the primary goal to maximize the value of your portfolio. The conditions that you requested were that at least one share must be purchased in each Category (Health Care/ Finance, Energy/ Materials, Tele/Info Tech/ Utilities and Retail/ Industrials) and no more than 30% must be invested in a certain category.
With these conditions in mind I selected 15 Shares in each category from the ASX 200 through interest and broker suggestions. These 15 shares in each category were narrowed down to 3-6 in each category through basic chart analysis, Individual watch lists for each category were then set up so I can monitor these selected shares. A watch list is a list of shares being monitored for potential trading or investing opportunities.
Through the watch list monitoring, The Market index suggestions and the analysis of the charts I was then able to further narrow down my selection to 1 in each category.
As you can see here in the Health and Finance sector RHC was chosen even though brokers suggest that it should be held because it indicates a constant price and I felt this would make a positive long term share.
I then moved on to select an Energy and Materials share which turned out to be FBU. This one was chosen because it was strongly suggested that it should be bought by the Market Index which is obviously a positive sign.
In the Telephone, Tech info and Utilities sector ACX was selected. ACX was a suggested buy because of it's low price and through analysis of charts my expectation at the time for future gain was what made me choose this share
The last sector I was required to invest in as the Retail and Industrials Sector. SYD was selected for many of the same reasons as RHC. It was chosen even though brokers suggest that it should be held because it indicates a constant price
These were then put into a separate watch lists and bought them on the 5/08 and placed into transactions and holdings tables. 196 RHC shares were purchased at $76.34 per share, which as you can see on the table here on the transactions table were valued at $14962.64 plus brokerage of $30, which came to a total of $14992.64. Next 1933 ACX Shares were purchased at $7.76 a share coming to $15000.08 in value and a total of $15030.08 including brokerage. 1385 FBU shares were purchased at $9.02 per share making the total cost (including brokerage) $12522.70. The last share bought on the 5/08 was SYD where 1000 shares were bought valued at $7.34 per share valued at $7340 making the total cost $7370. After these initial purchases the cash balance came to $84.58.
Then on the 11/08 I used a technique called technical analysis which is the study of investor behaviour and its effect on price movements in the markets to make a decision as to which shares I would hold or sell. Through this process I had decide to sell 2 shares SYD and ACX. The ACX share chart indicated that it should either be held or bought, however because of its plummet not long before I wanted to stop loss and sell this shares because my lack of vision for it. For this share I received $15008.74 of which I was going to use to purchase another. Then SYD was sold as it was very close to the support line which indicates a strong buy, however I didn't see enough potential in this share which Is why I sold the Sydney Airport (SYD) share. For SYD share I received $7350 of which I would again, later use for another purchase.
When selecting a New Telephone, Info Tech and Utilities share, Fundamental Analysis was used as well as Technical analysis to finalise and further justify the decision. When looking at fundamental analysis The higher the EPS the better the company is performing, the lower the P/E Ratio the better the company seems to be performing and the higher the dividend yield the better. As you can see in this table, AST has the best result in every criterion.
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