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Monday, June 30, 2008

Investing and Trading Thoughts: Speculation is Liquid Price Arbitration and Shipping Finance Ltd. (SFL) Dividend DRIP

Challenge Accounts:

Investing Account Balance:
$201.74
Stock / Futures Trading Balance: $825.61 (Starting July's Challenge Project Deposit)
Online Savings Balance: $32.22

Personal Trading Thoughts: We'll see. Basically on the trading front, everything is hanging around the major indices. Primarily the DOW. At this point - looking for short opportunities, but being very careful right now. Everything, right now? Is about the price of oil. Until the price of oil comes down, the stock market cannot have any sustainable rallies ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market is generally weaker in the summer. 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 ...


Today, again, we played with DRIP's.



Tomorrow, I'll have the monthly update to the Challenge Project ...

* * *

Investing Account Balance: $201.74
Stock / Futures Trading Balance: $825.61 (Starting July's Challenge Project Deposit)
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Saturday, June 28, 2008

Week in Review - June 28, 2008: In the Midst of a Real Recession

Challenge Accounts:

Investing Account Balance:
$200.97
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: No trading, it's the weekend ...

Personal Investing Thoughts: This has been a really nice week for DRIP's. On Thursday, my broker showed up my DRIP'd shares of my FRO stock. Friday, I notified that I was DRIP'd in more shares of BAC, in the $24.00 region; which gives me a wonderful DCA. I should be clear, and state that the Challenge project however, recieved no shares DCA's, as I bought those shares after the ex-date for the dividend. But on the 30th? I will receive my SFL Divvy, which again, will be DRIP'd.

Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


I had an entry some time ago, mentioning that we had now entered a "Real" Recession. It wasn't going to be some fart in the wind like 2001. This was going to affect how people lived, just day to day.

I am absolutely amazed beyond all belief, that there are still people debating whether or not we are in Recession. They can take the GDP numbers, and stick it up their rear. They are the same people that want to talk about our great export numbers. There's a problem with that however.

Americans don't live on export numbers. They live day to day, in this economy. They live with gasoline prices. They live with food prices.

How do I define a recession?

A moment when an entire segment of the population - finds it difficult to live, from day to day. When 'living' inflation becomes so high, they wonder how they are going to buy enough food and gasoline to get to work. To exist. For them this is not a minor inconvenience. This is an impossible situation. And when those decisions reach your average middle class, working American? Guess what? We're in a recession!

Gas going for $4.30 where I live. All the food prices are rising. Can't even buy a tomatoe out of the store. There's also a shortage on bananna's.

So now what? Do you look for someone to blame? Or do you take action?



I'll continue in the future, through the week - with Trader Thoughts Videos ...

* * *

Investing Account Balance: $200.97
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Friday, June 27, 2008

Futures Options Series - Option Strategies and Conclusion

Challenge Accounts:

Investing Account Balance:
$202.51
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: I'm not going to be trading today, as I'll be away from home. My wife isn't working today, she took the day off. So I am too. Sometimes you just have to spend the day with the people you love. So I'm taking the day off to spend it with my wife. I'll monitor the markets from my phone ...

Personal Investing Thoughts: This has been a really nice week for DRIP's. On Thursday, my broker showed up my DRIP'd shares of my FRO stock. Today, I was just notified that I was DRIP'd in more shares of BAC, in the $24.00 region; which gives me a wonderful DCA. I should be clear, and state that the Challenge project however, recieved no shares DCA's, as I bought those shares after the ex-date for the dividend. But on the 30th? I receive my SFL Divvy, which again, will be DRIP'd.

Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


We discussed why options are valuable. We discussed what is meant by the term "Put" option, and "Call" option. We discussed the five components of pricing with the Black - Scholes model.

I will finish up by talking about Futures Options Strategies ...



I'll continue in the future, through the week - with Trader Thoughts Videos ...

* * *

Investing Account Balance: $202.51
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Thursday, June 26, 2008

Futures Options Series - Option Pricing - Volatility ... (VIDEO)

Challenge Accounts:

Investing Account Balance:
$215.11
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Had a nice short day trade yesterday on BAC (If you look over at my Twitter updates, you'll see it's one I played publicly)

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


So, I had that series regarding Futures, and Commodity Futures. What about options on Futures? I've been discussing that on the blog lately.

Ok. We discussed why options are valuable. We discussed what is meant by the term "Put" option, and "Call" option. We discussed the five components of pricing with the Black - Scholes model. We discussed the first few components of an options value, in the delta, gamma and theta. Now, let's turn to the aspect of volatility and interest rates in the form of vega and rho.

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)



In the next video that deals with options, I'll begin to deal with strategies ...

* * *

Investing Account Balance: $215.11
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Tuesday, June 24, 2008

Futures Options Series - Option Pricing - Theta or Time Decay ...

Challenge Accounts:

Investing Account Balance:
$210.91
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Volatility on downward moves doesn't seem as strong. Easing up on my short bias as we may soon see a rally.

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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. We've gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term "Put" option, and "Call" option. We discussed the five components of pricing with the Black - Scholes model. We discussed the first two components of an options value, in the delta and the gamma. Now, let's turn to the aspect of time, or 'theta'.



In the next video, I will discuss the aspect of volatility and interest rates ...

* * *

Investing Account Balance: $210.91
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Monday, June 23, 2008

Futures Options Series - Option Pricing - Strike Price ... In the Money ... Out of the Money ...

Challenge Accounts:

Investing Account Balance:
$213.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Again, waiting to see if support holds on the e-mini ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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. We've gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term "Put" option, and "Call" option. We discussed the five components of pricing with the Black - Scholes model. Let's discuss the first two of those components in this video ...



Those first two components of an options price are called the "Delta" and the "Gamma". It should also be noted that your strike price? This is the entry point into the futures market if the option is exercised.

Tomorrow we will continue with a very important concept regarding time ...

* * *

Investing Account Balance: $213.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Sunday, June 22, 2008

Charting 101: Indicators and Stochastics - A Request ...

Challenge Accounts:

Investing Account Balance:
$218.54
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Weekend, no trading ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


I received a question a couple of days ago from a long time viewer of the YouTube videos, as well as a reader of this blog. It has to do with Stochastics and how to read them. I do reference a video on Indicators within the video? That can be found here.

Probably the best way to illustrate them, is within a video, which I shall do here ...



Ok. Tomorrow, we'll get back to our discussion on Futures Options ...

* * *

Investing Account Balance: $218.54
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Saturday, June 21, 2008

Week in Review for June 21, 2008: Challenge Project and the Prudent Man Rule

Challenge Accounts:

Investing Account Balance:
$218.54
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Weekend, no trading ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


Time for the 'Week in Review' ...



Tomorrow I promised someone a video that deals with stochastics ...

* * *

Investing Account Balance: $218.54
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Friday, June 20, 2008

Video Response to Thom363 on the Price of Oil

Challenge Accounts:

Investing Account Balance:
$225.82
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: I'm sizing up a trade on Ford (F) in my personal accounts ... I have to see how things shape up. On this front, I'm watching the broad market, and the daily chart for a long. Nothing yet ...

Edit: Pattern breaking down, I'm continuing to monitor it ... 11:20 AM

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market is generally weaker in the summer. 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 ...


Since this is a blog / vlog, I'm going to insert a personal comment here. I watch a YouTube channel by Thom363. Very well presented information. Today, he opened what I felt was an intelligent dialoge on the price of oil recently. Below, is my video response ...

Here is the link that I'm going to mention in the video. http://timingcharts.com/

Go to the drop box that says: Commodity, and change it to: Crude Oil, and then click: GET CHART. Now go to the bottom of that chart of Crude Oil. You will see the CoT report plotted out at the bottom.




Tomorrow, I'll post up a "Week in Review" video. On Sunday, I'm going to post a video on Stochastics, and then on Monday - I'll try to get back to Futures Options ...

* * *

Investing Account Balance: $225.82
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Thursday, June 19, 2008

Trader Thoughts Tonight - June 19, 2008

Challenge Accounts:

Investing Account Balance:
$225.82
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: I'm sizing up a trade on Ford (F) in my personal accounts ... I have to see how things shape up ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market is generally weaker in the summer. 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 ...


If you're reading this on my daily blog, you don't need the second reminder. But I did register for an account with Twitter ...



We will continue tomorrow with more on Futures Options ...

* * *

Investing Account Balance: $225.82
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Futures Options Series - Components of the Price of an Option - Black Scholes

Challenge Accounts:

Investing Account Balance:
$227.43
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Again, waiting to see if support holds on the e-mini ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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. We've gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term "Put" option, and "Call" option. Now we're going to talk about big, scary "Black-Scholes" model for pricing options ...



Tomorrow we will continue ...

* * *

Investing Account Balance: $227.43
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Wednesday, June 18, 2008

Futures Options Series - Calls and Puts

Challenge Accounts:

Investing Account Balance:
$233.52
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: June is a sort of 'blah' month for me trading wise. I might have another e-mini short trade coming up. Depends on how things shape up and if support holds ... If not, then might short ...

Edit: Yeeeehaaaa! Might take profits shortly - 10:53 AM - really have to get twitter for this sort of thing. Already registered as "Airelon"

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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. We've gone through the Futures, and had a whole series on Commodity Futures. Yesterday, we discussed why options are valuable. Now we're going to talk about two types of options. Put options. Call options. What does that mean?



We'll start talking about Black-Scholes tomorrow.

* * *

Investing Account Balance: $233.52
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Tuesday, June 17, 2008

Futures Options Series - What are Options, and Why are they Valuable?

Challenge Accounts:

Investing Account Balance:
$237.24
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: June is a sort of 'blah' month for me trading wise. I might have another e-mini short trade coming up. Depends on how things shape up.

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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. We've gone through the Futures, and had a whole series on Commodity Futures. Now it's time to turn to Futures Options. What IS a futures option exactly? Why are they valuable?



* * *

Investing Account Balance: $237.24
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Monday, June 16, 2008

Investing Thoughts: Challenge Project - Investment Account Purchase - Bank of America (BAC) ...

Challenge Accounts:

Investing Account Balance:
$243.60
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Watching and waiting. Just watched a fantastic Jefferson Krull (THANOS43 on YouTube) fade with IPI. He sold out at $60.50 - which he states this means that this generally means the price will rise. Last I looked? It was at $63.10. LOL.

Personal Investing Thoughts: Discuss them below ...


Consider that one itch scratched. For personal, and Challenge Project, I purchased BAC stock, with the DRIP on (7 shares in for the Challenge Project filled at $30.55). Long term purchase.



* * *

Investing Account Balance: $243.60
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Introduction to the Futures Options Series ...

Challenge Accounts:

Investing Account Balance:
$240.80
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Nothing at the moment, could change on a dime.

Personal Investing Thoughts: Ok. So I scratched the small itch. I bought more BAC, and was filled at $30.55. I bought about 7 shares for the Challenge Investing Account as well. Nothing else on the horizon. DRIP is on.


Ok. We've gone through the Futures, and had a whole series on Commodity Futures. Now it's time to turn to Futures Options ...



* * *

Investing Account Balance: $240.80
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Sunday, June 15, 2008

Investing Thoughts - Bank of America (BAC) .... (Again)

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Nothing at the moment, could change on a dime.

Personal Investing Thoughts: See my video below, as I offer my biggest idea for my investment portfolios. But overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


This thing is just mocking me right now ...



* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Saturday, June 14, 2008

Week in Review for June 14, 2008: InBev and Anheuser Busch (BUD) and more about Dividends

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: I'm sorta sliding back my own personal trading lately. Had a nice e-mini trade. But other than that? Things are to that point I call "Decision Time", and I like to stand on the sidelines when things like this are going on. I don't try to predict the market. I analyze it, and then see if the market confirms that my analysis is correct. I think right now, we're in 'decision time'. The market is factoring a lot of data out, and thing can get very volatile. Very fast.

Possibly, possibly looking for short / bearish possibilities if we break lower than 1332.60 on the S&P 500.

Personal Investing Thoughts: Ditto on my Trading thoughts. We've already had - "Sell in May and Go Away". Seasonal tendencies prove themselves again. Especially starting mid-June. Not comfortable buying right now for long term.


I review two topics that have held my attention this week. The Inbev and BUD deal, as well as a little more on the importance of dividends ...



I will say that I have no interest in being an InBev shareholder, since InBev does not prove their efficiency by distributing dividends to their shareholders.

I also think I'm getting close to go ahead with my "Futures Options" series ...


* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Friday, June 13, 2008

Airelons Holy Gospel Hour: I'M WORKING !!

Challenge Accounts:

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: No follow through yesterday, but no trades either. Will be watching that support on the e-mini ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


More and more people are beginning to work at home ...

Those who subscribe know that from time to time, a "Airelon's Holy Gospel Hour" is possible. A bit of a humorous side tangent.

I had a 10th grade Architecture teacher. Mr. Jabe. He was 27. Really cool guy. But we were High Schoolers. We gave him a ton of crap. Every once in a while - when we had gotten to be too much for him? He'd lose it. Then he'd tell us all:

"You can all sit down, and shut up. I've had about all I can take. So you get to listen to me rant, on the K. Jabe Gospel Hour. What is it with you guys? . . . . ."

And off he'd go. For the full hour. Decrying the lunacy that was going on around him.

I understand Mr. Jabe now - so much better. I had another "Gospel Hour" as can be seen here . . .

Current Target: People who can't understand that there is more to working at home, than walking around in shorts and a T-Shirt ...

There's also WORKING!



Tomorrow is the week in review ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

Note: 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.

Thursday, June 12, 2008

Trading Thoughts - Lehman Brothers and market conditions ...

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Great break below yesterday on e-mini. Today? Waiting to see if there will be follow-through.

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


My God, what's going on here? Bear Stearns Companies? Lehman Brothers? The Fed? OH MY!

It's an opportunity. Not to buy Lehman Brothers. That's not what I'm talking about (Although just talked to someone who made money from the pre-market panic). I'm talking about the environment which we find ourselves in.



I also recorded an "Airelon's Holy Gospel Hour". That'll go up on Friday ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Investing Thoughts - The Importance of Dividends: Part II

Challenge Accounts:

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Great break below yesterday on e-mini. Today? Waiting to see if there will be follow-through.

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


I had those videos a while back regarding the importance of Dividend Investing. Well, someone not only called me out, but had a few insulting statements to make along the way. Yesterday, I replied in Part I. Today, I conclude my comments on the importance of Dividends ...



I have a trader thoughts video coming up, and I also recorded an "Airelon's Holy Gospel Hour". That'll go up on Friday ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Wednesday, June 11, 2008

Investing Thoughts - The Importance of Dividends: Part I

Challenge Accounts:

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Break below support on the E-Mini - might look for short position ...

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


I had those videos a while back regarding the importance of Dividend Investing. Well, someone not only called me out, but had a few insulting statements to make along the way ...



In Part II - I'm going to specify - with exact numbers, exactly how powerful dividend investing with DRIP's can be.

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Tuesday, June 10, 2008

Investing Thoughts - Bank of America (BAC)

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Nothing at the moment, could change on a dime.

Personal Investing Thoughts: See my video below, as I offer my biggest idea for my investment portfolios. But overall, I'm just watching and waiting. Summer is here, and the market will be weaker. 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 ...


I made a comment a little while ago regarding BAC, and possibly looking to DCA my position with them. This raised some questions, which I address in this video ...



I did put in the video that it was a "Trading Thoughts" video. Which really isn't correct. This is more of an "Investing Thoughts" video, as I'm looking to own BAC for some time to come.

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Vacation Pictures ...

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: I'm going to put up another "Trader Thoughts" video here in a bit today, so I'll get to those then . . .

Personal Investing Thoughts: Ditto. :)


Some time ago, I went out to Lake Tahoe. A few guys at the TFC forum, and my old forum were interested in seeing the pics. Unfortunately, I never got the pictures developed (Yeah, I still haven't joined the 21st century and gotten a digital camera).



I'll put up a "Traders Thoughts" video shortly after this ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Monday, June 9, 2008

Futures Series - Epilogue

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: On the broad market, the next area of support is 12,160 area. I personally don't think that will be taken completely out, but at this point - the whole market is focused on the price of oil.

Personal Investing Thoughts: Dividends start getting paid as of today. Receive my BUD dividend today. Won't DCA me well, but hey - it's more shares for basically free.


I concluded the Futures series last week, but I quickly discovered that there were still many questions regarding commodity futures. So I decided to throw up this 'epiloge' video answering the range of questions I received throughout the weekend.

In todays video, I have some concluding remarks regarding this series and the Futures Markets ...




For the next few days I think I'll just stick to some commentary and trader thoughts. We'll see ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Saturday, June 7, 2008

Week in Review for June 7, 2008

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: I mention these in the following video ...

Personal Investing Thoughts: Ditto on my Trading thoughts. We've already had - "Sell in May and Go Away". Seasonal tendencies prove themselves again. Especially starting mid-June. Not comfortable buying right now for long term.


So we arrive at the end of another week. I review the stock market, one of my personal investing DRIP buy and hold accounts, as well as progress with the Challenge Account ...



On Monday, I have an 'epilogue' to my Futures Series ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Trading Thoughts: Always look to continue your education ...

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Markets are closed, but as a bull, I enjoyed seeing all the fear yesterday. I've said it, and I've said it, and I've said it. Inflation is coming. You can't stop it. Be prepared.

Personal Investing Thoughts: Just watching and waiting. Summer is here, and the market will be weaker. 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 ...


I recorded this yesterday.

No matter how long you've been around the Stock Market, or the Commodity Futures, there is always something new to learn. There are always ways you can further your education.



I'll try to get the "week in review" video up soon . . .

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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.

Friday, June 6, 2008

Futures Series - Conclusion and Remarks Regarding Futures Markets

Challenge Accounts:

Investing Account Balance:
$252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: Yesterday, I had to go to court for some tickets, and the guys were attempting to finish wrapping up the exterior of the windows on the house. If I trade today, it'll be a day trade, as I don't like starting out a swing trade on a Friday.

Personal Investing Thoughts: Just watching and waiting. Summer is here, and the market will be weaker. 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 ...


We've been discussing commodity futures in recent blog entries. We learned what a commodity is. We learned that commodities are traded in contracts, and those contracts have specific sizes, and contract months. We talked about leverage and lock-limits. We started talking a bit about the nature of the Commodity Futures markets and that they are zero sum. We've started to discuss some of the "Players" in this zero sum game, with the Small Speculators. We talked then about the Large Funds and then the Commercials; finishing up with a discussion regarding the COT report ...

In todays video, I have some concluding remarks regarding this series and the Futures Markets ...



One thing I would like to say, is that I've often said, "I won't trade a contract in the futures market, without a million dollar account". When I said, this, I was speaking of the S&P 500 Futures. The entire contract there can cost about $350,000.00. I would have no objection to trading a contract that was worth much less money, because I would not be as leveraged.

If you feel I've forgotten anything, or would like to see something regarding the Futures Markets covered in greater detail? Feel free to ask ...

* * *

Investing Account Balance: $252.64
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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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