Wealthy Uncle Ted has given you a virtual $10,000 under the condition that you agree to invest it wisely in the stock market. He has given you a two-week trial period during which you will invest in a mock portfolio of securities selected by you. You may determine the starting date, but once you select your stocks, you must record your choices in a spreadsheet. You must update the spreadsheet everyday for the two-week period. At the end of the trial period you must "sell" your entire portfolio and determine your gains or losses. If your gains are greater than 15% overall, you may keep the $10,000 and the profit. Otherwise, you return the money.

The Rules:

1. Each student receives a virtual $10,000 to invest.
2. Individuals must research a portfolio of stocks from the NASDAQ Exchange.
3. Individuals may select up to 10 common stocks from the NASDAQ market.
4. Individuals may invest up to (but not to exceed) $10,000.
5. Individuals must create a spreadsheet. Students may use the link to the left to create the spreadsheet in AppleWorks if this is an unfamiliar task.
6. After two weeks, if individual gains are greater than 15% overall, rich Uncle Ted says you may keep the virtual $10,000 and the profit. Otherwise, you return the money.

The Procedure:

In order to gain an insight into money and investing, students must do several tasks. These tasks will take at least a month with two weeks for research and two more to watch chosen securities

• Step 1: Use the Daytrader site to learn about the risks of daytrading.
• Step 2: Learn how to construct and use a spreadsheet to track a stock portfolio.
• Step 3: Discover how to read stock tables and do market research in a diligent manner.
• Step 4: Critically evaluate Online Brokers as potential investment portals.
• Step 5: After research is complete, establish a starting date for the mock investment portfolio.
• Step 6: Give your instructor a copy of your buy sheet (Spreadsheet with initial purchases) to signal the start of your mock portfolio.

The Evaluation:

Success in the market is directly connected to diligent learning and critical thinking. Success in this project is no different. However, the evaluation of learning isn't always tied to short-term success in the stock market.The following is a check list that will prepare you for your evaluation.

• Are you aware of the risks of daytrading?
• Can you make a spreadsheet to track your portfolio?
• Have you tried to set up a personal Excite or Yahoo page that keeps a portfolio for you?
• Do you know how to read stock tables?
• Have you learned which NASDAQ stocks tend to perform to your liking?
• Are you aware of the differences and similarities in online brokerages?
• Did you make more than 15% on your mock investments?
• Once this check list is complete, go to the Final Evaluation, fill out the form, print it out, and hand it to your instructor.

The Mock Portfolio:

A mock portfolio may also be kept using the "Yahoo Finance" or "My Excite" free sites. Here is an example of a spreadsheet with formulas, as well. Use the spreadsheet link on this site to further your understanding of the record keeping ability of spreadsheets.

Unfortunately, you know very little about investing in the stock market. To learn more, return to Daytrading to set you off on a learning adventure. You will notice that there are many references to the daytrading concept. It is important to know that you will not be daytrading. Uncle Ted frowns on this activity, but it is wise to know about it and the risks it holds.