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Saturday, September 6, 2008

The Week in Review: Dan Beats His Drum Yet Again with the Recession and the USD

Quotations of the Day:

"I rarely think the market is right. I believe non dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it" - Mark Cuban

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Challenge Accounts:

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

Personal Trading Thoughts: On Friday, I didn't see any good signs of continuation, so I stepped aside. It'll be an interesting time. We have the lowest low on the DOW just ahead of us. There's firm support there. That gets taken out with the September doldrums? Then I'll be looking for another short-term short play. But it'd need to be pretty substantial.

Personal Investing Thoughts: Ok. We take out the lower lows on the DOW? I'll be looking to be a buyer of another investing DRIP dividend stock when enough time passes (about two months from today), and we get 50% past the lower low. My DRIP remains on for all of the stocks that I continue to hold.

Frontline (FRO) look like it might be a great play to accumulate more shares. I'm watching the spot rate at the moment, as it's showing signs of firming up. But it'll take some time. No need to rush it. I can afford to wait, seeing as I'm so far ahead already with that stock ....

Welcome to the week in Review. I saw this Bloomberg article the other day - about another possibility that we "might" be moving towards a recession. What? Are they serious? Listen folks - WE ARE IN a recession. It's that simple. Ford is trading at a price with the penny stocks; as are many regional banks. CPI core inflation is 5.6%, and you can only get 3.5% out of a bank on your money. The government is so out of touch, that they think that printing more money and sending it in the mail won't hurt the inflation problem. Unemployment is 6.1%. People are talking about one of the big three going under. The housing situation was the worst since the Great Depression. There's a credit crisis. WHAT MORE DO YOU NEED? THE GDP DEFINITION ISN'T RELEVANT! We are IN a recession ... (video included)

On Monday, we discuss something I recently heard bandied about as a bit of wisdom. It's not the first time I heard it. I've heard this fallacy being spread about that it is a "bad idea to save your money". The first time I heard it, I laughed, because of how insane it was. The second time I heard it, I started to get angry. But that's my rant on Monday. Have a great weekend ...

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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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