Marist College Ashgrove

THE SHAREMARKET GAME

The Purple Dragons
By Matthew Broadley
1.0 Introduction

1.1 Aim of Report

The aim of the report is to present the knowledge and understandings gained from recent Sharemarket
Game.

1.2 Sources of Information

The sources of information for this report include both primary and secondary sources

The primary sources of information include the first hand experiences of members participating in the
Sharemarket game.

The secondary sources of information include a wide range of websites, textbooks and electronic
publications

1.3 Scope of report

This report is limited to the investigation of the Sharemarket game held from 5th of March to 13 May
2009

2.0 Overview of the Sharemarket game

The aim of the sharemarket game is to develop student’s knowledge of how the sharemarket works. The
students are able to buy and sell shares to give them an idea of the way that the real sharemarket works.

The way it works is that each group is given $50,000 worth of play money and can invest this online
using an online trading system, where you type in the amount of shares that you want and then it gives
them to you. Each group has a portfolio which keeps record of all the groups buying and selling of their
shares. It also tells the group: how much money they have in hand, how much money they have invested
in shares and, how much money they have overall (Shares & In Hand)

3.0 Trading Plan

3.1 Investment Strategy

An investment strategy is defined as ‘an investor’s plan of distributing assets among various investments,
taking into consideration such factors as individual goals, risk tolerance and horizon’ (Investor Words
2009)

When investing in the sharemarket there is either a long term or short term approach that can be applied.
A long term investment approach is to buy and hold which is a passive investment strategy that based on
the premise that the share price will rise over a period of time. (Financial Web 2009) A short term
strategy is “shot Term Trading” which is where the investor buys a share at the lowest possible price and
sells it when it gets to the highest possible price.

Our group, the Purple Dragons, used a mixture of both of these strategies. We used buying and holding
for the cheaper shares. The group bought some shares around the two dollar mark and held onto them.
This proved a good strategy considering over $1000 was made in this process.

The other strategy that we used was short term trading. Which we used with the more expensive shares.
The group bought shares and then held on to them for a short amount of time, in order to make a small
profit, in a small amount of time

3.2 Portfolio Diversification

As defined by ASX (2008, p. 31), portfolio diversification ‘is the principle of reducing risk by spreading
funds across a number of different securities or asset classes, as losses in one investment may be offset by
gain in another’.

As stated by ASX (2008, p. 31), the diversification of investments across a number of areas ‘enables you
to reduce the risk of losing your hard earned money’.
3.3 Trading Decisions
Trading decision are defined by Investopedia (2009) as “A method of evaluating a security by attempting
to measure its intrinsic value by examining related economic, financial and other qualitive and quantative
factors”. Our group decided to invest in cheap shares so we were able to buy a lot of them. For example:
we bought 2000 shares in Customers Limited at $1.90 a share, when the share value jumped to $2 we
gained $1000. We also always researched the shire in question before buying so we knew what the share
value was likely to do. So when we bought BHP shares, we saw that they go up and down in almost even
intervals, so we sold it when it was high and bought it back when it was low.

As defined by ASX (2009 p110).Technical analysis is the study if the past prices movements of an
individual share or the market as a whole to gain an insight into where the price might go. We used
technical analysis by looking at the charts of the companies that seemed to be going well. If we saw that it
had just started to go down we would sell it. And if we saw that it was just starting to go back up, we
would buy it.

4.0 Sharemarket Game Result

5.0 Review of Trading Plan

6.0 Conclusion

7.0 References

8.0 Appendices
8.1 Portfolio and Trading Statement at Close of Game
Cash on hand $19.88

Share holding value $51,576.74

Total portfolio worth $51,596.62

Code Holding Current value Close of day price

BHP 300 $10,329.00 $34.43

OSH 600 $3,120.00 $5.20

QBE 44 $909.04 $20.66

CUS 4594 $9,877.10 $2.15

STO 330 $4,775.10 $14.47

CBA 100 $3,674.00 $36.74

LNN 100 $1,165.00 $11.65

BEN 500 $3,450.00 $6.90

LGL 300 $930.00 $3.10

ASX 350 $11,427.50 $32.65

IRE 300 $1,920.00 $6.40

Trading statement
Type Code Trade Trade Trade Brokerag Transaction time
value Qty price e

BUY QBE -$945.64 44 $20.81 $30.00 Wed, 13 May 2009

12:03:26 PM AEST

BUY CUS -$2,130.00 1,000 $2.10 $30.00 Tue, 05 May 2009

11:31:01 AM AEST

SELL BWP $143.50 -100 $1.74 $30.00 Tue, 05 May 2009

11:26:37 AM AEST

SELL AOE $150.50 -50 $3.61 $30.00 Tue, 05 May 2009

11:20:02 AM AEST

BUY CUS -$30.00 15 $2.00 $0.00 Thu, 30 Apr 2009

12:08:50 PM AEST
BUY CUS -$276.00 138 $2.00 $0.00 Thu, 30 Apr 2009
12:08:38 PM AEST

BUY BHP - 300 $33.25 $30.00 Thu, 30 Apr 2009

$10,005.00 12:06:41 PM AEST

BUY CUS -$2.00 1 $2.00 $0.00 Thu, 30 Apr 2009

12:06:35 PM AEST

BUY CUS -$16.00 8 $2.00 $0.00 Thu, 30 Apr 2009

12:06:24 PM AEST

BUY CUS -$586.00 293 $2.00 $0.00 Thu, 30 Apr 2009

12:05:18 PM AEST

BUY CUS -$684.00 327 $2.00 $30.00 Thu, 30 Apr 2009

12:05:17 PM AEST

BUY CUS -$434.00 217 $2.00 $0.00 Thu, 30 Apr 2009

12:05:17 PM AEST

BUY CUS -$4,190.00 2,095 $2.00 $0.00 Thu, 30 Apr 2009

12:05:17 PM AEST

SELL CUS $8,273.07 -3,978 $2.08 $1.17 Mon, 27 Apr 2009

15:17:45 PM AEST

SELL CUS $2,024.46 -978 $2.07 $0.00 Mon, 27 Apr 2009

15:15:09 PM AEST

SELL CUS $45.76 -22 $2.08 $0.00 Mon, 27 Apr 2009

15:15:09 PM AEST

SELL CUS $4.14 -2 $2.07 $0.00 Mon, 27 Apr 2009

15:14:56 PM AEST

SELL CUS $8.28 -4 $2.07 $0.00 Mon, 27 Apr 2009

15:09:55 PM AEST

SELL CUS $8.28 -4 $2.07 $0.00 Mon, 27 Apr 2009

15:04:49 PM AEST
SELL CUS -$5.16 -12 $2.07 $30.00 Mon, 27 Apr 2009
14:55:42 PM AEST

BUY CUS -$3,518.00 1,600 $2.18 $30.00 Mon, 27 Apr 2009

10:02:25 AM AEST

BUY CUS -$4,142.00 1,900 $2.18 $0.00 Mon, 27 Apr 2009

10:02:25 AM AEST

SELL BHP $6,607.39 -205 $32.25 $3.86 Fri, 24 Apr 2009 12:26:15
PM AEST

SELL BHP $32.25 -1 $32.25 $0.00 Fri, 24 Apr 2009 12:26:15

PM AEST

SELL BHP $1,032.32 -32 $32.26 $0.00 Fri, 24 Apr 2009 12:26:06
PM AEST

SELL BHP $999.75 -31 $32.25 $0.00 Fri, 24 Apr 2009 12:26:04
PM AEST

SELL BHP $32.26 -1 $32.26 $0.00 Fri, 24 Apr 2009 12:26:03

PM AEST

SELL BHP $2,547.75 -79 $32.25 $0.00 Fri, 24 Apr 2009 12:26:02
PM AEST

SELL BHP $2.25 -1 $32.25 $30.00 Fri, 24 Apr 2009 12:25:51

PM AEST

BUY ASX -$1,020.36 33 $30.92 $0.00 Wed, 22 Apr 2009

12:07:18 PM AEST

BUY ASX -$9,154.79 296 $30.92 $2.47 Wed, 22 Apr 2009

12:07:18 PM AEST

BUY ASX -$339.20 10 $30.92 $30.00 Wed, 22 Apr 2009

12:07:17 PM AEST

BUY ASX -$309.20 10 $30.92 $0.00 Wed, 22 Apr 2009

12:07:17 PM AEST
BUY ASX -$30.92 1 $30.92 $0.00 Wed, 22 Apr 2009
12:07:17 PM AEST

BUY BHP - 350 $31.28 $32.84 Wed, 22 Apr 2009

$10,980.84 12:05:41 PM AEST

SELL ASX $3,032.07 -99 $30.93 $30.00 Tue, 21 Apr 2009

16:10:14 PM AEST

SELL ASX $8,531.88 -276 $30.93 $4.80 Tue, 21 Apr 2009

16:10:14 PM AEST

SELL BHP $11,131.51 -350 $31.90 $33.50 Tue, 21 Apr 2009

10:00:57 AM AEST

BUY BHP - 350 $33.20 $34.86 Tue, 14 Apr 2009

$11,654.86 10:00:26 AM AEST

DV OSH $24.00 600 $0.04 $0.00 Thu, 09 Apr 2009

05:48:01 AM AEST

SELL BHP $11,469.99 -350 $32.87 $34.51 Tue, 07 Apr 2009

15:02:23 PM AEST

SELL TOL $898.50 -150 $6.19 $30.00 Mon, 06 Apr 2009

10:10:23 AM AEST

SELL TTS $31.20 -12 $2.60 $0.00 Mon, 06 Apr 2009

10:09:40 AM AEST

SELL TTS $1,238.80 -488 $2.60 $30.00 Mon, 06 Apr 2009

10:09:39 AM AEST

BUY OSH -$925.75 175 $5.29 $0.00 Mon, 06 Apr 2009

10:07:20 AM AEST

BUY OSH -$691.25 125 $5.29 $30.00 Mon, 06 Apr 2009

10:07:17 AM AEST

BUY BHP -$2,057.45 64 $32.09 $3.69 Wed, 01 Apr 2009

12:50:50 PM AEST
BUY BHP -$96.24 3 $32.08 $0.00 Wed, 01 Apr 2009
12:50:45 PM AEST

BUY BHP -$577.44 18 $32.08 $0.00 Wed, 01 Apr 2009

12:50:45 PM AEST

BUY BHP -$5,838.56 182 $32.08 $0.00 Wed, 01 Apr 2009

12:50:45 PM AEST

BUY BHP -$254.56 7 $32.08 $30.00 Wed, 01 Apr 2009

12:50:40 PM AEST

BUY BHP -$1,219.04 38 $32.08 $0.00 Wed, 01 Apr 2009

12:50:40 PM AEST

BUY BHP -$1,090.72 34 $32.08 $0.00 Wed, 01 Apr 2009

12:50:40 PM AEST

BUY BHP -$128.32 4 $32.08 $0.00 Wed, 01 Apr 2009

12:50:40 PM AEST

BUY CUS -$730.48 397 $1.84 $0.00 Tue, 31 Mar 2009

13:18:17 PM AEST

BUY CUS -$82.80 45 $1.84 $0.00 Tue, 31 Mar 2009

13:17:16 PM AEST

BUY CUS -$7.32 4 $1.83 $0.00 Tue, 31 Mar 2009

13:16:05 PM AEST

BUY CUS -$9.15 5 $1.83 $0.00 Tue, 31 Mar 2009

13:10:50 PM AEST

BUY CUS -$209.76 114 $1.84 $0.00 Tue, 31 Mar 2009

13:09:48 PM AEST

BUY CUS -$7.32 4 $1.83 $0.00 Tue, 31 Mar 2009

13:03:50 PM AEST

BUY CUS -$506.00 275 $1.84 $0.00 Tue, 31 Mar 2009

12:58:18 PM AEST
BUY CUS -$90.16 49 $1.84 $0.00 Tue, 31 Mar 2009
12:58:17 PM AEST

BUY CUS -$7.32 4 $1.83 $0.00 Tue, 31 Mar 2009

12:54:35 PM AEST

BUY CUS -$141.68 77 $1.84 $0.00 Tue, 31 Mar 2009

12:50:29 PM AEST

BUY CUS -$7.32 4 $1.83 $0.00 Tue, 31 Mar 2009

12:46:20 PM AEST

BUY CUS -$70.48 22 $1.84 $30.00 Tue, 31 Mar 2009

12:42:45 PM AEST

BUY BEN -$4,070.00 500 $8.08 $30.00 Tue, 31 Mar 2009

12:30:01 PM AEST

SELL BHP $11,511.86 -350 $32.99 $34.64 Mon, 30 Mar 2009

12:39:19 PM AEST

BUY TTS -$1,410.00 500 $2.76 $30.00 Fri, 27 Mar 2009 14:31:27
PM AEST

SELL CPU $3,478.00 -400 $8.77 $30.00 Fri, 27 Mar 2009 14:29:42
PM AEST

BUY BHP -$5,100.00 150 $33.80 $30.00 Thu, 26 Mar 2009

15:22:54 PM AEST

SELL TRS $5,937.50 -550 $10.85 $30.00 Thu, 26 Mar 2009

15:21:38 PM AEST

DV TRS $176.00 550 $0.32 $0.00 Thu, 26 Mar 2009

05:44:11 AM AEST

BUY TRS -$1,130.00 100 $11.00 $30.00 Fri, 20 Mar 2009 13:38:41
PM AEST

BUY LGL -$1,041.00 300 $3.37 $30.00 Fri, 20 Mar 2009 12:18:38
PM AEST
BUY TOL -$907.24 148 $6.13 $0.00 Fri, 20 Mar 2009 10:13:59
AM AEST

BUY TOL -$42.26 2 $6.13 $30.00 Fri, 20 Mar 2009 10:13:55

AM AEST

BUY CBA -$496.80 15 $33.12 $0.00 Thu, 19 Mar 2009

13:25:50 PM AEST

BUY CBA -$1,188.85 35 $33.11 $30.00 Thu, 19 Mar 2009

13:25:49 PM AEST

BUY ASX -$501.68 16 $29.48 $30.00 Thu, 19 Mar 2009

13:21:38 PM AEST

BUY ASX -$1,002.32 34 $29.48 $0.00 Thu, 19 Mar 2009

13:21:38 PM AEST

SELL RIO $4,573.00 -100 $46.03 $30.00 Thu, 19 Mar 2009

13:15:29 PM AEST

BUY RIO -$515.50 10 $51.55 $0.00 Fri, 13 Mar 2009 13:01:09

PM AEST

BUY RIO -$2,092.80 40 $51.57 $30.00 Fri, 13 Mar 2009 13:01:05

PM AEST

BUY ASX -$657.80 22 $29.90 $0.00 Fri, 13 Mar 2009 12:32:38

PM AEST

BUY ASX -$1,554.80 52 $29.90 $0.00 Fri, 13 Mar 2009 12:32:38

PM AEST

BUY ASX -$2,990.00 100 $29.90 $0.00 Fri, 13 Mar 2009 12:32:37
PM AEST

BUY ASX -$59.90 1 $29.90 $30.00 Fri, 13 Mar 2009 12:32:37

PM AEST

BUY BHP -$1,602.00 50 $31.44 $30.00 Fri, 13 Mar 2009 12:20:33

PM AEST
SELL FGL $234.50 -50 $5.29 $30.00 Thu, 12 Mar 2009
12:48:01 PM AEST

BUY RIO -$1,399.72 28 $49.99 $0.00 Thu, 12 Mar 2009

12:46:25 PM AEST

BUY RIO -$50.00 1 $50.00 $0.00 Thu, 12 Mar 2009

12:46:24 PM AEST

BUY RIO -$1,079.79 21 $49.99 $30.00 Thu, 12 Mar 2009

12:46:23 PM AEST

BUY ASX -$1,573.00 55 $28.60 $0.00 Thu, 12 Mar 2009

12:41:22 PM AEST

BUY ASX -$87.20 2 $28.60 $30.00 Thu, 12 Mar 2009

12:41:15 PM AEST

BUY ASX -$1,229.80 43 $28.60 $0.00 Thu, 12 Mar 2009

12:41:15 PM AEST

BUY BWP -$191.00 100 $1.61 $30.00 Thu, 12 Mar 2009

12:37:54 PM AEST

SELL CPU $1,763.58 -238 $7.41 $0.00 Thu, 12 Mar 2009

12:26:16 PM AEST

SELL CPU $58.80 -12 $7.40 $30.00 Thu, 12 Mar 2009

12:25:13 PM AEST

BUY CBA -$1,453.50 50 $28.47 $30.00 Thu, 12 Mar 2009

12:25:08 PM AEST

SELL CSR $177.00 -200 $1.04 $30.00 Thu, 12 Mar 2009

12:24:57 PM AEST

SELL TTS $1,129.60 -446 $2.60 $30.00 Thu, 12 Mar 2009

12:17:43 PM AEST

SELL TTS $2,740.40 -1,054 $2.60 $0.00 Thu, 12 Mar 2009

12:17:43 PM AEST
BUY BHP -$3,103.00 100 $30.73 $30.00 Thu, 12 Mar 2009
12:14:26 PM AEST

SELL AAC $233.10 -185 $1.26 $0.00 Thu, 12 Mar 2009

12:14:04 PM AEST

SELL AAC -$11.10 -15 $1.26 $30.00 Thu, 12 Mar 2009

12:13:57 PM AEST

BUY BHP -$1,566.00 50 $30.72 $30.00 Wed, 11 Mar 2009

13:37:21 PM AEST

BUY AAC -$28.82 22 $1.31 $0.00 Wed, 11 Mar 2009

13:33:37 PM AEST

BUY AAC -$263.18 178 $1.31 $30.00 Wed, 11 Mar 2009

13:28:25 PM AEST

BUY ASX -$1,448.00 50 $28.36 $30.00 Wed, 11 Mar 2009

13:18:44 PM AEST

BUY AOE -$122.99 49 $2.51 $0.00 Wed, 11 Mar 2009

13:15:07 PM AEST

BUY CSR -$238.00 200 $1.04 $30.00 Wed, 11 Mar 2009

13:14:26 PM AEST

BUY AOE -$32.51 1 $2.51 $30.00 Wed, 11 Mar 2009

13:14:25 PM AEST

BUY IRE -$458.48 88 $5.21 $0.00 Wed, 11 Mar 2009

13:11:46 PM AEST

BUY OSH -$1,539.00 300 $5.03 $30.00 Wed, 11 Mar 2009

13:11:45 PM AEST

BUY IRE -$5.21 1 $5.21 $0.00 Wed, 11 Mar 2009

13:10:27 PM AEST

BUY IRE -$26.05 5 $5.21 $0.00 Wed, 11 Mar 2009

13:10:27 PM AEST
BUY IRE -$1,103.26 206 $5.21 $30.00 Wed, 11 Mar 2009
13:10:26 PM AEST

SELL TTS $559.68 -212 $2.64 $0.00 Wed, 11 Mar 2009

13:09:16 PM AEST

SELL TTS $3,703.92 -1,403 $2.64 $0.00 Wed, 11 Mar 2009

13:09:16 PM AEST

SELL TTS $116.16 -44 $2.64 $0.00 Wed, 11 Mar 2009

13:08:51 PM AEST

SELL TTS $245.52 -93 $2.64 $0.00 Wed, 11 Mar 2009

13:08:51 PM AEST

SELL TTS $624.72 -248 $2.64 $30.00 Wed, 11 Mar 2009

13:08:50 PM AEST

BUY CUS -$208.98 129 $1.62 $0.00 Mon, 09 Mar 2009

10:09:43 AM AEST

BUY CUS -$500.20 305 $1.64 $0.00 Mon, 09 Mar 2009

10:05:16 AM AEST

BUY CUS -$500.20 305 $1.64 $0.00 Mon, 09 Mar 2009

10:05:15 AM AEST

BUY CUS -$380.48 232 $1.64 $0.00 Mon, 09 Mar 2009

10:05:12 AM AEST

BUY CUS -$77.56 29 $1.64 $30.00 Mon, 09 Mar 2009

10:05:09 AM AEST

BUY LNN -$750.27 89 $8.43 $0.00 Fri, 06 Mar 2009 11:31:12

AM AEST

BUY LNN -$122.62 11 $8.42 $30.00 Fri, 06 Mar 2009 11:30:26

AM AEST

BUY FGL -$188.10 30 $5.27 $30.00 Fri, 06 Mar 2009 11:24:27

AM AEST
BUY FGL -$105.40 20 $5.27 $0.00 Fri, 06 Mar 2009 11:24:27
AM AEST

BUY TRS -$3,040.95 291 $10.45 $0.00 Thu, 05 Mar 2009

13:22:50 PM AEST

BUY TRS -$243.34 23 $10.58 $0.00 Thu, 05 Mar 2009

13:10:50 PM AEST

BUY TRS -$137.54 13 $10.58 $0.00 Thu, 05 Mar 2009

13:10:48 PM AEST

BUY TRS -$1,331.34 123 $10.58 $30.00 Thu, 05 Mar 2009

13:10:44 PM AEST

BUY STO -$4,034.94 273 $14.78 $0.00 Thu, 05 Mar 2009

13:02:57 PM AEST

BUY STO -$871.89 57 $14.77 $30.00 Thu, 05 Mar 2009

13:02:38 PM AEST

BUY CPU -$2,385.50 325 $7.34 $0.00 Thu, 05 Mar 2009

12:42:27 PM AEST

BUY CPU -$2,363.48 322 $7.34 $0.00 Thu, 05 Mar 2009

12:42:27 PM AEST

BUY CPU -$52.02 3 $7.34 $30.00 Thu, 05 Mar 2009

12:40:01 PM AEST

BUY TTS -$3,301.70 1,205 $2.74 $0.00 Thu, 05 Mar 2009

12:38:27 PM AEST

BUY TTS -$10.96 4 $2.74 $0.00 Thu, 05 Mar 2009

12:38:23 PM AEST

BUY TTS -$1,270.25 451 $2.75 $30.00 Thu, 05 Mar 2009

12:38:12 PM AEST

BUY TTS -$2,873.75 1,045 $2.75 $0.00 Thu, 05 Mar 2009

12:38:12 PM AEST
BUY TTS -$88.00 32 $2.75 $0.00 Thu, 05 Mar 2009
12:38:12 PM AEST

BUY TTS -$1,886.50 686 $2.75 $0.00 Thu, 05 Mar 2009

12:38:12 PM AEST

BUY TTS -$211.75 77 $2.75 $0.00 Thu, 05 Mar 2009

12:38:12 PM AEST

8.3 Other Information

Graph of Portfolio Value over Sharemarket Game

$54,000.00

$53,000.00

$52,000.00
Portfolio Value

$51,000.00

$50,000.00

$49,000.00

$48,000.00

$47,000.00

$46,000.00
1 2 3 4 5 6 7 8 9 10 11
No. Week