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Thursday, July 17, 2008

Implications of 30 Day Shock Ban on Naked Short Selling?

Challenge Accounts:

Investing Account Balance:
$214.14
Stock / Futures Trading Balance: $861.20 (Within a trade)
Online Savings Balance: $37.30

Personal Trading Thoughts: Very small bump up yesterday in Soymeal. We moved lower overnight. Seasonal move still on, support now has to be violated at the 413 and then the 408 region ...

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 ...


What sort of implications might we face from this temporary ban on naked short selling for 19 firms on the part of the SEC? I discuss that in this video ...



* * *

Investing Account Balance: $214.14
Stock / Futures Trading Balance: $861.20 (Within a trade)
Online Savings Balance: $37.30


Total Trades: 4 (In the 5th trade right now, statistics cover only 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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