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Monday, August 25, 2008

Don't Fall for the Psychological Urgings of the "Mob" (The Mystery of Buy Low, Sell High Explained)

Quotations of the Day:

"I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.." - Warren Buffett


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Challenge Accounts:

Investing Account Balance:
$310.54
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: It's really key to see if we get a continuation of Friday's gains. At this point, we need to make higher high's - in order to confirm that the relief rally is going to continue. For right now? It's just chop, chop ... chop.

Personal Investing Thoughts: DRIP remains on for all of my stocks. I discuss, in today's video, that the DRIP is not reflecting in my audited accounts however. I also have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.



Today we review some thoughts of Warren Buffet, and discuss why these thoughts assist you to accumulate wealth. ... (video included)



Tomorrow, we discuss discuss - your very first investment purchase ...

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Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$310.54
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Total Trades: 6
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $56.63
Average Loss: $74.27
Accuracy Rate: 33%
Average Reward: $175.34
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Up + $53.84

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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