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Wednesday, February 6, 2008

Challenge Accounts: Real Trading brings Real Emotions. And an opportunity to learn

Challenge Accounts:

Sharebuilder Balance: $131.14

optionsXpress Balance: $683.49 ($100 Deposit still clearing)
ING Orange Savings Balance: $2.06

The more I thought about the trade we missed yesterday, the more aggrivated I got. I've been running this blog since October 2007, and though I think I've put a lot of great information out there? There has only been 1 trade. I'm anxious to get this challenge thing really rolling along. It's my current project, and I would like to see it start to blossom.

Therein lay the danger.

I ran into a situation today. It provoked an emotional response. So this gives us a wonderful opportunity to talk about that. You have to realize these sorts of emotions when they come up when you are going to have actual trades.

And I love trading. I'm not sure what it is about it? But I love the wheel and the deal. The offers, the market. Everything. But again, there is a danger there. I discuss that in this video.

I recorded that last night. Now look what has happened today. You see why I say: Don't chase the market - it will involve you in the mob mentality? Something else that will help you fight these natural emotional responses? It's something I learned after a few years.

Don't worry. There will always be another opportunity. Don't chase after a lost duck.

* * *

Sharebuilder Balance: $131.14
optionsXpress Balance: $683.49 ($100 Monthly deposit still clearing)
ING Orange Savings Balance: $2.06

Total Trades and Investments: 1
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 1
Average Drawdown: $86.51
Accuracy Rate: N/A
Average Reward: $0.00
Risk Reward Ratio: N/A

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 adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders

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