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MSIE ’04 Portal – Bill AngevineWeb Concepts Page |
MSIE 2004Term 1 Home PagesIPL Schedule, Topics,
Session Notes Class Roster |
Supporting Information:Goal/Mission: Greatly facilitate the maximization of the return on the investment with minimal risk. Tools/Functions: What “job” does an investor ask this web site to perform? This product’s job is to successfully maximize the return on the investment with the minimal risk. Much of this proposed web site is still TBD towards the specifics of the analysis process which I have not yet learned. However, this analysis process will involve the technical analysis of financial instruments using as many of the technical analysis formulas and interpretations as possible. The analysis tools the users will utilize can be organized as follows: · Tools to Know When to Sell · Tools to Know What to Buy · Tools to Know When to Buy · Tools to Model Tax Implications of Transaction · Tools to Track Transactions (dates, $, etc) · Tools for Sector Trends: Who’s hot, Who’s not. Users:Investors: Novice Investor – Scared and apprehensive Advanced Investor – Knows that losses are part of the process but confident that losses will be substantially less than the gains. Uses all tools to maximize investments. Has well defined Max and Min points. Does not get emotionally involved in an investment and will not hold on hoping for a recovery. Average Investor – A little of both the Novice and Advanced investor 401K/IRA Investor – Not as concerned about tax implications, usually a long term approach. Can be Novice, Average, or Advanced. Non 401K/IRA Investor – Yearly Tax ramifications, especially where Mutual Funds, are a concern. Can be Novice, Average, or Advanced System Admin Billing Scenarios:John –
Average Investor/When to Sell/Non 401K-IRA: John has got approximately $3,000 invested in several Small Capitalization (small cap) funds. Using the indicators on what to buy and when, John previously purchased: 102 shares of CSMVX at $14.57 on
131 shares of AVALX at $11.39 on
John logs in and looking at the Portfolio view, which is the opening screen, John sees the following:
Since the time is greater than the short term capital gains (40%) the tax rate is now the long term capital gains (15%). According to today’s market price, after taxes, John has earned 34% on each investment. John is feeling pretty good about himself and his abilities! With out any further investigation, John “lets it ride” and will review his portfolio next month and maybe then perform further investigations. After all, the trend line is up and with a 34% gain John thinks he must be doing something right! John logs out feeling mighty fine. Jane –
Advance Investor/When to Sell/Non 401K-IRA: Like John, Jane has approximately $3,000 invested in Small Capitalization funds. Using the indicators on what to buy and when, Jane just happen to buy at the same time, as well as, the same funds as John: 102 shares of CSMVX at $14.57 on
131 shares of AVALX at $11.39 on
Logging into her Portfolio view Jane sees the same great news as John:
However, Jane looks at this her portfolio daily. Although there is a historical trend to higher prices, and she is encouraged by the results to date, Jane wants to confirm she should hold the investments. Understanding and using the technical indicators on “when to sell”, Jane sees that she is still in a good “hold” position. However, some of the indicators are starting to turn downward but not drastically. If there was a compelling reason to sell, like a better opportunity, Jane might sell to realize the paper profit and reinvest in this new opportunity. Thus, Jane uses the “what to buy and when to buy tools” to see if there are any buy opportunities. Seeing no opportunities, Jane elects to hold and not sell. However, tomorrow she will perform the same analysis on the technical indicators for each fund and see if she should sell, regardless if there is an opportunity as the indicators are turning downward and some of the indicators are turning down she does not want to loose this profit opportunity. Jane logs off. Timmy –
Novice Investor/When to Sell/Non 401K-IRA: Timmy is a reluctant investor who is very much afraid of risk, but wants the rewards. Rather than over time trying the investing process out on paper, Timmy as leaped in with $3,000 invested in same Small Capitalization funds as John and Jane. Timmy used the indicators on what to buy and when to buy and stumbled into the same conclusions as John and Jane: 102 shares of CSMVX at $14.57 on
131 shares of AVALX at $11.39 on
However, Timmy panicked. First on
Timmy now better understands his level of risk. He has decided to simulate trading using the Portfolio tracking, learning the tools when to buy, what to buy, and when to sell tools in order to practice investing. Kim –
Average Investor/Non 401K-IRA: After a recent successful sale,
Kim is now flush with profit and is ready to reinvest this money. But where to reinvest? Kim enters the “What to Buy” section of the
web site. This section helps the user
to understand which sectors are hot, which sectors are cold, and which are
turning around. Additionally, the top
performing stocks and mutual funds over a user specified time period is able
to be displayed. Kim uses the tools
and determines that the Small Capitalization funds, Using the tools Kim focuses on the Small Capitalization funds and focuses on the top three (3) performers: WMICX, FBRVX, and CSMVX. Unfortunately, WMICX and FBRVX are closed to new investors so she focuses in on CSMVX. Using the “when to buy” tools, Kim is looking to when might be the best time to buy. Generally, if a stock/fund is good any time is a good time to buy. Kim is looking to see if there might be indicators of weakness. The “when to buy” tools do not show any such signs of weakness so she puts in the buy order. Sometimes there is a temporary low, or market adjustment, which the tools will show for which the investor can tack advantage of. There was no such advantage for Kim this time, but it was not for a lack of trying. Jake –
Average Investor/401K-IRA: Jake is in the market for the long haul and has diversified his portfolio across small, mid and large cap funds. He is more interested in the long term trends and has no concerns with tax implications as his 401K is tax deferred. Jake uses the sector trends analysis tools periodically to pulse the market and may make 1 or 2 adjustment per year. However, Jake does get the daily email small charts which he quickly reads and deletes as there is usually no action required. Mary – Sys
Admin: Mary has just finished helping a user resolve a simple error via email and is at her desk reviewing the plans for the next upgrade. The plans look good. Reviewing the status reports she sees that all the backups have occurred with in the time allocated and the systems are meeting all the uptime requirements. This is a good day she thinks as a SEV1 (Severity 1 – the highest) alarm notification interrupts her train of thought. The intrusion detection system has detected another abnormality. This has been happening with greater frequency and it is Managements directive to protect customer’s privacy, as well as, system integrity. But this time she is ready. With prior support from Management she enables the honey pot and waits…. Bill –
Billing: Tomorrow is the first of the
month. At
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