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Thursday, June 5, 2008

Futures Series - The Players; "COT Report"

Challenge Accounts:

Investing Account Balance:
$252.64 (Monthly Deposit Processing)
Stock / Futures Trading Balance: $825.61 (Monthly Deposit Processing)
Online Savings Balance: $32.22 (Monthly Deposit Processing)

Personal Trading Thoughts: There was no trading yesterday. The house was just insane. Windows getting ripped and banged out, then replaced. My cats just losing their minds. We now have the new windows in the house, but they're coming back today to get the outside finished up. I took the time to do a bit of reading and 'continuing education' on the Forex.

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. The market is offering bargain prices on many stocks, so 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...

Let's talk about how to use all of that information, in the COT Report ...



Tomorrow I'll talk about some of the things that move the Futures markets ...

* * *

Investing Account Balance: $252.64 (Monthly Deposit Processing)
Stock / Futures Trading Balance: $825.61 (Monthly Deposit Processing)
Online Savings Balance: $32.22 (Monthly Deposit Processing)

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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