Research a company and explain why you might invest
By the end of this lesson you can
- Apply the week 2 analysis to one company
- Write a thesis before the trade
- Size the position by your rules
Research
Pick one company you understand. In Stock Analysis, work through business, growth, financial health, valuation and price behaviour, and read the ‘Why this VEXA Score?’ panel critically.
Thesis before trade
Write your thesis with a time frame and kill criteria in the trade note before you buy. The simulator lets you attach a short reason to each trade, and those notes come back during your review on Day 28.
Size it
Use the rule from Day 17: decide how much of the $10,000 you could lose on this idea if it fell sharply, and size the position to match.
Try it in VEXA
Real data, so the numbers will differ from the lesson’s examples.
Key terms
- Due diligence
- Researching an investment before making a decision.
Paper Challenge task
Buy your first stock with a written thesis in the trade note, sized by your own rules.
Simulated trading with virtual money on real end-of-day prices. Nothing is bought or sold for real, and results in a game do not predict real-world results.
Knowledge check · 3 questions
Try it
Make your first paper trade with a written thesis in the note field.
Key takeaways
- Research before you trade.
- Attach a thesis to every trade.
- Size by how much you could lose.