A team of students from the University of Auckland, including Leo Dion Liu, William Chong and Issa Al-Khudairi, has taken out first place in the 2014 CMC Markets University Trading Challenge. The annual competition enables students from across New Zealand to put investment theory into practice by providing participating teams with a $10,000 virtual fund to trade in a range of financial derivative instruments, including currency, commodity and global indices. This year, the competition attracted over 100 student teams.
Students compete each year throughout the month of September to secure the highest return on investment, via a CMC Markets online trading platform. Prior to the event, each team undertakes a training session and after two days, and again after the first week, teams can opt to ‘reset’ their account balance to $10,000 as they familiarise themselves with the platform and the challenges of trading.
Leo Dion Liu of the winning team said, “We entered the competition for the experience and with our sights set on the podium! We found the reset options valuable at the start of the competition as we were able to trade wildly to get a feel for the market, but after this we focused on smaller trades to let the funds build up slowly.
“Our strategy was based on using CMC Markets’ range of analysis tools to identify the most highly traded shares, and making short-term investments, as we knew we only had a month to trade. We also used the stop-loss option to sell units when they reached a certain price.”
This strategy led the team straight to the finish line, with the group making an impressive 1036% return on investment. (Beginners luck?!)
“We learnt a great deal about how trading really works in the market from the competition. Our tips for other first time traders – never rely on one single source of information and never be afraid to take calculated risks,” Leo added.
George Lowndes, Director of the University of Auckland Management Consulting Club (MCC) said, “With most students yet to experience trading first hand, the CMC Markets University Trading Challenge is a unique, first time opportunity for them to apply theories learnt in class and develop their skills on a real, trading platform. Many past winners have gone onto enjoy successful trading and investment careers, so we see the competition as a vital, educational tool to foster the emerging talent of our next generation of stockbrokers and derivatives traders.”
Chris Smith, General Manager of CMC Markets New Zealand said, “We are proud to partner with MCC to deliver this valuable experience for students. In providing access to our award winning trading platform, including the full range of news, data and analysis tools, educational features and mobile trading apps, finance professionals of the future can put their theoretical investment and trading strategies to the test.
“First hand, practical experience of capital markets will help these students deepen their knowledge and hone their trading skills, and ultimately provide a strong foundation for future of successful shares and derivatives trading.”