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Monday, March 3, 2008

Investment Series - What are the Risks?

Challenge Accounts:

Investing Account Balance: $131.46

Stock / Futures Trading Balance: $684.39 (Deposit Inbound)
Online Savings Balance: $2.06

In this daily blog, thus far, I have talked a lot about trading in the stock market and futures options. In a continuing investment series over the last week or so, I've switched gears for a little bit, and talk about investing; which I've been doing for the last few days.

Now mind you, I still trade. As a matter of fact, I just took my profits from an OJ trade.

Thus far with investing however, I have discussed timing accumulation shares for dividends; doing so with larger companies, using seasonality in determining when to accumulate, DRIPs, Dollar Cost Averaging and Fair Value. I discussed aspects of my own reverse scaling hybrid money management system.

But what are the risks? How you should you view those risks? I discuss that in the following video:



So that's all I have to say (for now) for Investing. We'll continue onwards and upwards.

* * *

Investing Account Balance: $131.46
Stock / Futures Trading Balance: $684.39 (Deposit Inbound)
Online Savings Balance: $2.06

Total Trades and Investments: 3
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 33%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.02

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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