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Wednesday, August 13, 2008

My Economic Background ... Another Reason for the Challenge Project

Challenge Accounts:

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

Personal Trading Thoughts: In my personal accounts, I'm still within the CRBC trade. It's worked out really well, and just continuing to monitor this swing trade ...

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, please don't mind, but I'm going to get a little personal with you today.

I've received some comments that "It's ok for a guy like me with a lot of money to talk about X, but you don't know what its like when ....", and on and on. I wasn't always in this position. I didn't always have my head screwed on straight financially. So let's go over a few facts.

In addition? If you walk into any business? You should have your eyes wide open to the dangers and challenges that face you in that business. After all? Risk control is the name of the game right?

Well, let's say you're starting out low funded. What is there about how others perceive your situation? That you need to be aware of?

Tomorrow, I'm going to discuss the new financial sexiness. Being debt-free.

* * *

Investing Account Balance: $316.98
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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