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Wednesday, August 6, 2008

Money Management Principles: Watch Trade Management in Practice - Ford Motor (F)

Challenge Accounts:

Investing Account Balance:
$334.13
Stock / Futures Trading Balance: $982.04 (Within a Trade)
Online Savings Balance: $47.39

Personal Trading Thoughts: I discuss my trading thoughts in the two videos below.

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 ...


Watch my thought processes, as I start a trade in both my personal accounts, as well as the Challenge Project accounts with Ford (F) at $5.02 on a buy.

There are two videos to watch. I will demonstrate trade management thoughts, decisions, and techniques based on time frame, market conditions, and risk reward money management decisions. I recorded my thoughts as the market progressed.

Here's the first video:



Here's the second video:



* * *

Investing Account Balance: $334.13
Stock / Futures Trading Balance: $982.04 (Within a trade)
Online Savings Balance: $47.39


Total Trades: 5 (Within the 6th, but the statistics only cover 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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