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Thursday, November 8, 2007

November is here, what about the $500 Challenge Accounts?

Ok, I have three rules for the $500 Challenge Accounts.

1) The initial investment is $500.00, to be split amongst the accounts. This has been completed. Sharebuilder has $130.00, and the Xpresstrade account has $370.00.

2) Every month, I can contribute $100.00, that can be split amongst the accounts however I choose. In other words, I can send $30.00 to Sharebuilder, $70.00 to Xpresstrade; or $100.00 to Xpresstrade, and nothing to Sharebuilder, etc. Now that we have arrived in a new month, I'm thinking I'm going to contribute the entire $100.00 to the Xpresstrade Account, bringing that balance to $470.00. I will be transfering $100.00 to that account on 11/9/2007. Which means it probably won't clear until about 11/13/2007, or on the Tuesday after the transfer. Regardless, there is still too little in each account to trade or even invest with, since I'm going after aggressive growth with these accounts. The commissions would eat me alive, and I can't trade the Xpresstrade account for money management reasons. I want to build the Xpresstrade up to at least $700.00 (preferrably more) before I start trading that account. My accuracy rate is about 92%, and my risk / reward ratio is about 1:2.3. So it wouldn't make any sense to trade it before that time.

The Sharebuilder account will earn approximately 4.40% interest on the money that's in there, and there are no fees.

That's the plan for now.

3) I'll be using regular investment and trade vehicles. Bonds. Stocks. ETF's. Futures Options. But not this month, for the reasons I listed above. Open-mouthed


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This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment advisor, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The $500.00 challenge account is run for the education of other traders

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