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Friday, June 6, 2008

Futures Series - Conclusion and Remarks Regarding Futures Markets

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Yesterday, I had to go to court for some tickets, and the guys were attempting to finish wrapping up the exterior of the windows on the house. If I trade today, it'll be a day trade, as I don't like starting out a swing trade on a Friday.

Personal Investing Thoughts: Just watching and waiting. Summer is here, and the market will be weaker. Many years, I turn my DRIP off in the summer, and receive straight cash. But not this summer. We've been in a bear market, and the market is offering bargain prices on many stocks. Therefore, my DRIP will remain on, so that I can accumulate more shares at better prices to DCA ...

We've been discussing commodity futures in recent blog entries. We learned what a commodity is. We learned that commodities are traded in contracts, and those contracts have specific sizes, and contract months. We talked about leverage and lock-limits. We started talking a bit about the nature of the Commodity Futures markets and that they are zero sum. We've started to discuss some of the "Players" in this zero sum game, with the Small Speculators. We talked then about the Large Funds and then the Commercials; finishing up with a discussion regarding the COT report ...

In todays video, I have some concluding remarks regarding this series and the Futures Markets ...

One thing I would like to say, is that I've often said, "I won't trade a contract in the futures market, without a million dollar account". When I said, this, I was speaking of the S&P 500 Futures. The entire contract there can cost about $350,000.00. I would have no objection to trading a contract that was worth much less money, because I would not be as leveraged.

If you feel I've forgotten anything, or would like to see something regarding the Futures Markets covered in greater detail? Feel free to ask ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

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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