Accounting course gives Phillip confidence to come out on top in ASX sharemarket game
By Greg Chapman
The knowledge Phillip Owen has acquired while studying Accounting at CQUniversity has helped him reap ‘virtual’ dividends during a recent sharemarket game organised by the Australian Stock Exchange (ASX).
Phillip’s sharemarket know-how earned him a place in the top 10 of participants and the honour of “Top Performing University Student” prize.
The game gives anyone the opportunity to learn about the Australian Sharemarket. Participants are given $50,000 in virtual cash and a real-time experience to trade in the sharemarket, investing in the top 300 ASX listed companies as well as 55 Exchange Traded Funds (ETFs) and 5 Listed Investment Companies (LICs).
Phillip took his $50,000 and turned it into almost $75,000 in the space of 15 weeks.
According to the ASX, Phillip spent at least a half hour each weekday reviewing his portfolio, and selected stocks using a top-down approach underpinned by technical analysis of individual companies.
Initially, his strategy was to hold companies until they reached his price targets and reinvest his returns throughout to further grow his portfolio.
Using this approach, he held positions in a diverse range of companies for various periods of time throughout the game. Some of the companies held included utilities like Duxton Water (ASX:D20), medical device manufacturer Polynovo (ASX:PNV), and ETFs like the Betashares Crypto Innovators (ASX:CRYP).
In most cases, this strategy proved effective, however Phillip noted that he failed to set in place any stop-losses and that this oversight cost him on several occasions.
Nevertheless, Phillip’s combination of technical analysis and profit-taking delivered a solid result and even helped him navigate volatility with a relatively attractive risk/reward profile, based on capital asset pricing model (CAPM) metrics.
“I feel grateful to have had the opportunity to participate and achieved such an amazing result with a portfolio of almost 50 per cent growth in 15 weeks. This has given me the confidence to start investing real money into the share market,” he said.
“Along with prior knowledge of technical analysis, the lessons I learned from my teacher Angelique helped me to understand when a company was undervalued by using the CAPM.
Phillip, who lives in Toowoomba, said he chose to study CQU’s Accounting degree, majoring in Financial Planning, because it offered more flexibility.
“The option CQU offered to study online worked for me because I am a single parent of two beautiful girls and work full-time,” he said.
“I have participated in share trading in the past, without any luck. I have invested in highly speculative shares, which have either tanked or been delisted from the sharemarket.
“Knowing not to invest in companies listed at a sharemarket price under $1 has helped me to understand I can still achieve great results from companies within the ASX top 300.
He said anyone looking to trade on the sharemarket needed a clear strategy.
“Having an exit plan is crucial, whether it be setting a stop-loss for an underperforming company to minimise loss, to selling your shares at a predetermined target and capitalising on gains made.”
Lecturer Dr Angelique McInnes congratulated Phillip on his achievement.
"This recognition is a testament to the dedication and talent of our CQUniversity students, like Phil Owen. His performance in the ASX Sharemarket Game reflects the real-world skills we aim to cultivate at CQU," she said.
"The ASX Sharemarket Game offers a unique opportunity for CQU students to apply financial theory in a simulated market environment.
"We’re proud to see our students excel in such a competitive national challenge. Behind every student success is a supportive learning environment.
"Kudos to the School of Business and Law faculty and mentors who guide students through these enriching experiences.
"I hope this achievement inspires more students to take part in future investing challenges and continue building their financial literacy and confidence."
