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Friday, April 11, 2008

Charting 101: Chart Patterns and Day Two of the Sucky Videos

Challenge Accounts:

Investing Account Balance: $241.92

Stock / Futures Trading Balance: $734.39
Online Savings Balance: $22.10

Personal Trading Thoughts: Cash. No positions. We seem to be ranging at the top of the channel that's developed in this market. I have no swing positions as I have a vacation coming up; and I don't want to get caught in the middle of a swing trade, before I leave. Therefore, no trades this month.

Personal Investing Thoughts: Cash is my largest position. I still hold all of my long term stocks, and recently added a very small DTE long term DRIP position this week. My bearish outlook hasn't gone away however. The inflation beast will rear it's head unless the Fed stops cutting rates. But there is another possibility. We could 'channel' for a while. In other words, a short-term bottom might be developing, as the market goes sideways for a while. I'm still prepared for a 35% drawdown from the highs.

Ok. Day two of the Sucky Videos. Having no nice charts to show you because I'm using YouTube's direct upload.

In this video, I discuss "links" to chart patterns. Here is the link to a Double Top Pattern. Here's an example of a Bull Flag. Here's an example of a Head and Shoulders Pattern. As well as an example of Symmetrical Triangles.

* * *

Investing Account Balance: $241.92
Stock / Futures Trading Balance: $734.39
Online Savings Balance: $22.10

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 and tolerance for risk.

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