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Tuesday, August 5, 2008

How to "Build" a $20,000 Investment Account

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $1,011.79
Online Savings Balance: $47.39

Personal Trading Thoughts: Just watching at the moment. Quite a few possibilities. But I have to run out of the house this morning, so any trades I have, would be in the afternoon. Keep an eye on Twitter.

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 ...

Ok, I've demonstrated my investing decisions with the Challenge Investing Account. But "how" do you build an account? How do you start off with investing? How many shares should you have, before you look to diversify? This goes to an excellent question I received from atomichockey. I answer that question in this video

Something else I would add? Is remember that down the road? You can add to any account that you've accumulated, if the timing and price is right. Always look to make your investment account grow.

* * *

Investing Account Balance: $327.41
Stock / Futures Trading Balance: $1,011.79
Online Savings Balance: $47.39

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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