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Saturday, April 12, 2008

Week in Review for April 13th, 2008: Investing vs. Trading. Lets take a closer look at General Electric (GE)'s stock slide

Challenge Accounts:

Investing Account Balance: $241.92

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

Personal Trading Thoughts: Cash. No positions. 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. We seem to be falling from the top of this sideways channel the market has fallen into lately. But even then, there isn't a whole lot of volume.

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. I don't even want to think about what the CPI will be. 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.

Day Three of the sucky videos. But I really wanted to make an entry, considering GE's move yesterday after missing earnings. GE posted horrible results. It's the end of the stock market and the world!

Or perhaps.


This video will also be included in my investment series of blog entries.

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

The next entry in my investment series, will discuss the importance of dividends.

* * *

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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