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Tuesday, February 26, 2008

Investment Series - Dollar Cost Averaging

Challenge Accounts:

Investing Account Balance: $131.14

Stock / Futures Trading Balance: $604.89
Online Savings Balance: $2.06

On this blog, I have talked a lot about trading. A few days ago, I switched gears, and started discussing investing a little more.

Now mind you, I still trade. For those that follow this Daily Blog, you know that I just finished up a trade on the e-mini S&P 500 Futures Index. On the previous video, I discussed the importance of looking for dividend stocks that have a DRIP program and considering Seasonality when looking to time your accumulation of more shares. In this video, I discuss dollar cost averaging in greater detail. . .

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)



Tomorrow, I will discuss the concept of "Fair Value" . . .

* * *

Investing Account Balance: $131.14
Stock / Futures Trading Balance: $604.89
Online Savings Balance: $2.06

Total Trades and Investments: 2
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 0%
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 who should make their own decisions based off their own research.

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