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Stock Trak Project 2 - Investment Fundamentals Stock-Trak...

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Investment Fundamentals Stock-Trak: Project 2 Throughout the past month of Stock Trak I am starting to rethink my decision of using a passive approach. From previous courses I have learned that it is best to buy and hold stocks when it comes to investing, so I choose to have a passive approach during stock track. However I should have taken into consideration our time frame and the fact that we are only working with Stock Trak for three months. The short time frame we have to make trades has really hindered my success in my portfolio. With a passive strategy I believe you need to be trading for a long period of time; allowing the markets to fluctuate and hopefully end will positive returns. With a short time period, 3 month like we have, an active approach is a much better strategy to get the highest amount of return. Unsystematic risk is very unpredictable and can change the rate of return very quickly in a portfolio. With an active approach you are more likely to be able to avoid a drastic decline in the rate of return because you are constantly trading and you would trade a stock as soon as it starts to or has the potential to decline in value. If I would have applied this approach I believe I would have been more successful instead of sitting with a -19.83% HPR
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