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Monday, May 26, 2008

Futures Series - Leverage Illustrated ...

Challenge Accounts:

Investing Account Balance:
$247.27
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.15

Personal Trading Thoughts: The markets are closed today. But as far as the Challenge Accounts: Nothing on the horizon. Personal trading? I'm just going to relax today, and haven't got my eye on anything in particular. That could change, of course, by tomorrow morning.

Personal Investing Thoughts: Markets closed today. But I'm expecting the market to continue to fall. Not looking to establish new positions just yet. Just observing the markets. And actually, it's beneficial for my investment portfolio's, if we have some pullback now. Dividend season is approaching. This means that when my DRIP's go into effect, I'll grab more shares, for free, at better prices.


Sometimes, ones have a hard time understanding the actualities of leverage. So I thought it might be good to illustrate what leverage is.



Tomorrow we discuss lock-limit.

* * *

Investing Account Balance: $247.27
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.15


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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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