- Department: The York Management School
- Module co-ordinator: Prof. Mark Freeman
- Credit value: 20 credits
- Credit level: M
- Academic year of delivery: 2023-24
|A||Semester 2 2023-24|
This module provides a practical introduction to the theory and practice of trading equities in a contemporary and professional context. The module critically assesses a range of different investment and trading approaches. You will consider how these strategies operate, their association with key variables such as performance and liquidity and how these strategies can be used practically. We supplement this theoretical examination using the workshops and seminars to discuss and apply how these theoretical methods of trading can be employed and used. This will involve the use of contemporary datasets such as databases such as: Datastream, CRSP and boardex and trading simulation software. Through the use of financial datasets and using a simulated trading platform, the module will facilitate understanding of how real markets operate and practical benefits and drawbacks of different trading and investment strategies.
After successful completion of the module students will be able to:
Evaluate the professional, theoretical and applied techniques and tools required for stock trading.
Comprehend the requirements and expectations needed to become a trading professional.
Interpret and analyze financial data by selecting appropriate theoretical and statistical concepts and tools
Employ and interpret the efficacy of different trading strategies
Assemble a coherent investment strategy using simulation software.
Cognitive skills and critical reflection on ethics of trading through self-study and assessments
Academic and graduate skills
Advanced subject specific knowledge and understanding
Cognitive (thinking) skills: through self-study and assessments
Problem solving and analytical skills required to undertake finance calculations and/or estimations.
Ability to conduct research into financial issues through data collection from Refinitiv, WRDS and other financial databases and platforms made available by the school.
Numeracy through the application and use of financial techniques.
Understanding the trading environment:
Introduction to the key markets, instruments and methods of trading.
Professional expectations, expected ethical standards and legal environment
Methods of Trading - following the text and by experts
Buffett approaches – the importance of Valuation and Liquidity – workshop using ratios for stock screening
Fisher growth Investing – applications of ratios - students to undertake a growth analysis of a firm finding data on financial datasets.
Dreman, psychology and contrarian approaches – trading on biases
Markowitz and portfolios – developing and assessing portfolios. Betas (avoid teaching much CAPM)
Technical Analysis – moving averages, momentum, trends, convergence etc. and other methods.
New Areas- green investing, fin tech and big data issues.
Assessing trading performance.
Ethics of Trading, Market Abuse and Financial Misconduct
Workshops and seminars
Using Refinitive, Undertaking different forms of Analysis, Undertaking an applied simulation of trading and applying different methods of trading using Global Investor Simulation (https://www.globalinvestorsims.com/uk/)
|Task||Length||% of module mark|
Essay : An assignment project involving reflections from using some simulation software.
Essay : A larger project involving the collection of data and analysis of data from finance data sets
|Task||Length||% of module mark|
Essay : A resit assignment (Developed)
Essay : A resit assignment (Short)
Feedback will be given in accordance with the University Policy on feedback in the Guide to Assessment as well as in line with the School policy.
Cai, C. X. and Keasey, K. (2022) The Experts and the Evidence. A Practical Guide to Stock Investing. Wiley, Chichester. (the text has Bloomberg examples- hopefully we can convert these to Refinitive)