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Tuesday, June 3, 2008

Futures Series - The Players; "Large Funds"

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.22

Personal Trading Thoughts: Looking for more weakness and follow through today. I honestly believe that we've just seen the start of this next downtrend. Had a short daytrade profit yesterday with ESM8. I'll be looking for another profit.

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.

Let's discuss the next group ... the Large Funds ...

So tomorrow, we discuss why there even is a commodity futures market. Who the market is there for. The Commercials.

* * *

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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