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Tuesday, September 9, 2008

This is a Challenge to ANYONE who Wishes to Blame Oil Specualtors

Quotations of the Day:

"Every man is guilty of the good that he did not do." - Voltaire

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Challenge Accounts:

Investing Account Balance: $442.27
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.51

Personal Trading Thoughts: You know, for all of this grand rise on the DOW is great? But we're still stuck in this channel. The chop, chop, chop we're experiencing is insane. I can't play in this stuff, as I don't day trade, I swing trade.

And yes, believe it or not, I'm STILL within the CRBC trade. I'm up to $4.41 from $3.09 as my entry, and I've tightened my profit stop. But good lord. The low volatility on this trade is taking forever. I can't remember the last time that a swing trade took so long. This is slowly turning into a position trade, rather than a swing trade. I'm looking to the $5.00 region to take my profits. But I'd be willing to tighten up my profit stop so that I take the profits I have sooner.

Personal Investing Thoughts: Well, as I said. The garganteoun rise on the DOW we had was nice? But we remain in the channel that we've been stuck in for a month. Just waiting for a breakout. I wonder if the market will remain this way until the election. DRIP remains on for every dividend investment stock I continue to hold.


I'm going to ask that if you listen, and agree with this video? Send it to every person that you ever hear blame oil speculation as the cause of high oil prices. I've had it. Here's how you do that.

1) Click on the Title of this Blog Entry
2) Copy the URL that you find in your address bar.
3) Paste the link to whomever you wish to send this entry to.

I've had it with this stupid, ignorant myth that oil speculators are the reason for high oil prices. It's stupid. It's wrong. It's ignorant. And worse yet, it's an attack on my livelihood. The cash market determines the prices. NOT the speculator. The speculator is the effect. The cash market is the effect. The economic fundamentals is the cause that affects the cash spot market, which in turn, affects the futures market afterwards ... (video included)



I leave you with a couple of quotes, that I received watching Shawn's YouTube videos:

"A government which blames speculators for the consequences of its unsound monetary policy is like a rancher who, having slaughtered his cows on the open plains, blames the vultures for descending on their carcasses." - Imad-ad-Dean Ahmad

And another, that Shawn actually had ...

"It is not easy to determine whether there are any who still adhere in good faith to the doctrine that traces back the depreciation of money to the activity of speculators. The doctrine is an indispensable instrument of the lowest form of demagogy; it is the resource of governments in search of a scapegoat. There are scarcely any independent writers nowadays who defend it; those who support it are paid to do so. Nevertheless, a-few words must be devoted to it, for the monetary policy of the present day is based largely upon it.

Speculation does not determine prices; it has to accept the prices that are determined in the market. Its efforts are directed to correctly estimating future price situations, and to acting accordingly. The influence of speculation cannot alter the average level of prices over a given period; what it can do is to diminish the gap between the highest and the lowest prices. Price fluctuations are reduced by speculation, not aggravated, as the popular legend has it." - Ludwig Von Mises

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Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$442.27
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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