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Saturday, June 28, 2008

Week in Review - June 28, 2008: In the Midst of a Real Recession

Challenge Accounts:

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

Personal Trading Thoughts: No trading, it's the weekend ...

Personal Investing Thoughts: This has been a really nice week for DRIP's. On Thursday, my broker showed up my DRIP'd shares of my FRO stock. Friday, I notified that I was DRIP'd in more shares of BAC, in the $24.00 region; which gives me a wonderful DCA. I should be clear, and state that the Challenge project however, recieved no shares DCA's, as I bought those shares after the ex-date for the dividend. But on the 30th? I will receive my SFL Divvy, which again, will be DRIP'd.

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 an entry some time ago, mentioning that we had now entered a "Real" Recession. It wasn't going to be some fart in the wind like 2001. This was going to affect how people lived, just day to day.

I am absolutely amazed beyond all belief, that there are still people debating whether or not we are in Recession. They can take the GDP numbers, and stick it up their rear. They are the same people that want to talk about our great export numbers. There's a problem with that however.

Americans don't live on export numbers. They live day to day, in this economy. They live with gasoline prices. They live with food prices.

How do I define a recession?

A moment when an entire segment of the population - finds it difficult to live, from day to day. When 'living' inflation becomes so high, they wonder how they are going to buy enough food and gasoline to get to work. To exist. For them this is not a minor inconvenience. This is an impossible situation. And when those decisions reach your average middle class, working American? Guess what? We're in a recession!

Gas going for $4.30 where I live. All the food prices are rising. Can't even buy a tomatoe out of the store. There's also a shortage on bananna's.

So now what? Do you look for someone to blame? Or do you take action?

I'll continue in the future, through the week - with Trader Thoughts Videos ...

* * *

Investing Account Balance: $200.97
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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