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Friday, July 25, 2008

Emotional Discipline and Investing. Console Yourself with Some Data ...

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $986.79
Online Savings Balance: $37.30

Personal Trading Thoughts: I'm eye'ing up a few Commodity Futures markets. I'd like Sugar #11 to rise and form a double top, I'm watching Live Cattle, and I'm also looking at some of the Metals ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market is generally weaker in the summer, so I'm not a buyer. 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 ...

This is part two to the last entry I had, earlier today. An excellent set of questions on the part of Joe. This deals with: How do you cope when your mind is screaming to capitulate, and exit the position? Especially if this is an investment?

You console yourself with the data. The facts of where investing wealth comes from. As well as the possibility to DCA your position in the future. That's what I'll discuss in the following video ...

Tomorrow is the "Week in Review"

* * *

Investing Account Balance: $249.28
Stock / Futures Trading Balance: $986.79
Online Savings Balance: $37.30

Total Trades: 5
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $62.40
Average Loss: $79.81
Accuracy Rate: 40%
Average Reward: $175.34
Risk : Reward Ratio: 1 : 2.2
Trading Money Gain / (Loss): Up + $111.50

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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