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Financial Institutions and Instruments - Essay Example
Author : rowezaria
Pages 13 (3263 words)
The object of this paper is to devise a profitable trading or investment strategy for the common stock of St. George's Bank (SGB.AX), to illustrate and explain the strategy clearly, to estimate the likely profitability of the strategy, and to provide supporting evidence for these assertions and conclusions.
An investment strategy has more to do with responsibly, and often conservatively, managing an investment portfolio in order to maximize gains with a minimum of maintenance, a low number of transactions (and their attendant costs), and a minimum of risk.
This paper will explore the investment strategy approach for the most part, whilst also exploring some of the more simplified and well-tested technical strategies of the trading approach. A simplified investment strategy is the one most likely to be employed by an ordinary person with a modest portfolio, a minimum amount of time to devote to managing that portfolio, and limited ability, desire, and/or resources to devote to the use of sophisticated analysis tools. In other words, the kind of person who has a day job as opposed to being a fulltime day trader, and needs a strategy that includes a fair degree of automatic execution and pre-determined portfolio protection devices. Finding a consistent strategy that meets these requirements would be useful to a great number of people who are currently disadvantaged in the area of maximizing their investment gains by lack of financial resources, time, and expertise, whilst at the same time they may be very dependent on their investment performance for their future financial security needs.
Much work has been done in pursuit of a system that would consistently provide excess returns ...