Investing practice journal – Completed example

1. Before the practice decision

Entry date and time

Starting entry, time 1. No real dates or market quotes are used.

Company, currency and reporting period

Fictional company A; kronor (SEK); first half-year.

Source and information actually provided

Constructed teaching card on the journal page. Reported revenue in the model: SEK 200,000 for the first half-year.

Hypothesis and evidence needed

ASSUMPTION: the following half-year’s revenue could be SEK 240,000. Testing it requires a revenue report for that half-year; the amount is absent from the starting card.

Fictional decision: quantity, price, cost and cash

Starting account SEK 1,000. Five shares × model price SEK 80 = SEK 400. Cash after the purchase: SEK 600. No real trade is made.

Exercise rules and chosen review point

Review when the ending card is supplied, time 2. The same five shares and unchanged cash. No fees, dividends, taxes, deposits, withdrawals or currency changes.

2. After the chosen ending evidence

Review date and time

Dated continuation, time 2. The original text from time 1 is retained.

New evidence and its source

The ending card states a model price of SEK 92. No new revenue report is supplied.

Calculation and correct starting base

See the calculation table below. The holding and whole account have different starting bases.

What does the outcome answer? What remains unknown?

The model price rose. Revenue of SEK 240,000 remains an unconfirmed hypothesis; the price proves neither that revenue nor the quality of the initial evidence.

Next learning question and evidence needed

Obtain the following half-year’s revenue evidence and keep its period separate from the first half-year. Then identify which evidence supports each conclusion.

Dated addition if the reasoning changes

No amendment in this example. If your reasoning changes, append a newly dated entry and retain the original note.

3. Calculations in the completed example