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Wednesday, June 11, 2008

Investing Thoughts - The Importance of Dividends: Part I

Challenge Accounts:

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

Personal Trading Thoughts: Break below support on the E-Mini - might look for short position ...

Personal Investing Thoughts: Overall, I'm 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 ...


I had those videos a while back regarding the importance of Dividend Investing. Well, someone not only called me out, but had a few insulting statements to make along the way ...



In Part II - I'm going to specify - with exact numbers, exactly how powerful dividend investing with DRIP's can be.

* * *

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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