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Tuesday, September 16, 2008

Bank of America (BAC) and Merrill Lynch (MER). Thain Knew He Was Going to Sell

"Opportunities multiply as they are seized." - Sun Tzu, The Art of War

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Side Challenge Project Accounts:

Investing Account Balance: $385.01
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.51

Personal Trading Thoughts: As I said the other day ... I don't try to trade this mess. I stand aside and wait for some normalacy. Did you guys even see those moves in the US Dollar yesterday? Wow. Everything is down, around, and all over the place. Gold. Oil. Stocks. I will wait.

Personal Investing Thoughts: DRIP remains on. Just remember: Patience. As I was saying in the week in review? Just wait! Patience is an investors best friend. September and October are seasonally very weak months. Just wait, and look to 'buy on the cheap'.

Sometimes? I'm amazed at how short some folks memory actually is. In the current economic environment? You have to be observant. You have to think your way through. Don't forget about details and news events that occurred six weeks previously. Whatever you do? Do not react emotionally ... (video included)

We will see what the future will bring, and act accordingly at the proper time. The next big news, will be on Wednesday. Then? It's all about Morgan Stanley (MS).

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Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.51

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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