Search This Blog

Saturday, August 30, 2008

The Week in Review: Tai-Pan by James Clavell, Frontline Ltd (FRO), The Challenge Project Deposit and the New Watchlist

Quotations of the Day:

"The man who doesn't read good books has no advantage over the man who can't read them." - Mark Twain


* * *

Challenge Accounts:

Investing Account Balance:
$317.05
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: This is a long weekend, with no trading on Monday, due to Labor Day. Just passing the time until trading begins in earnest again on Tuesday.

Personal Investing Thoughts: I discuss those in the following video ....



Welcome to the week in Review. We discuss a favorite book of mine, Frontline Ltd., (FRO), as well as deposits to the Challenge Project and a new addition to this daily blog ... (video included)



On Monday, we discuss battle scars ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$317.05
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.

Friday, August 29, 2008

Your First Trade: Emotional Discipline

Quotations of the Day:

"Only when you combine sound intellectual with emotional discipline, you get rational behavior" - Warren Buffett


* * *

Challenge Accounts:

Investing Account Balance:
$319.08
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: On follow through to higher prices, might look for some short swing trades ...

Personal Investing Thoughts:
My DRIP remains on for all of my stocks. Now for a while, I've been saying: "I also have my eye on a few stocks for my long term investment portfolio.". I think I'm going to create a sidebar to the right here at my blog - with my "Long-Term Investing Stocks Watchlist". But for now? Well, as I've been saying: I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.

But let's be clear. Seasonals only point to a tendency. Not an absolute rule. Last September, we rallied through the whole month. We'll see.



Some time ago, I had a series on "How to Begin". We discussed getting started with Investing, rather than trading. Then we discussed your First Investment as to the mechanics. Then the First Investment, as to the emotions. Then we discussed the mechanics to your First Trade. Now let's discuss emotional discipline with your First Trade. (video included)



Tomorrow, is the "Week in Review" ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$319.08
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.

Thursday, August 28, 2008

Challenge Project ... Pre-September Deposit

What d'yall think? (Video included ...)



Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$319.08 ($99.07 is Cash, rest is 7 shares of BAC)
Stock / Futures Trading Balance: $954.13 (All Cash)
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.

Your First Trade: Mechanics

Quotations of the Day:

"It's only when the tide goes out that you discover who's been swimming naked." - Warren Buffett


* * *

Challenge Accounts:

Investing Account Balance:
$309.56
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: Just got back from the amusement park, Cedar Point late last night. Oh my god guys. I got through the Magnum XL, the Gemini, the Maverick (very, very fun ride), the Mean Streak, and right about then, my back started to spasm. Half way through the day? I could barely walk. But I did have fun. And while standing in line for the Maverick, I did pull some quotes from the cell phone. Seems we had a nice day. FRO shot up 2 bucks and change. Let's see if we can get some * * follow through * *

Personal Investing Thoughts:
My DRIP remains on for all of my stocks. Now for a while, I've been saying: "I also have my eye on a few stocks for my long term investment portfolio.". I think I'm going to create a sidebar to the right here at my blog - with my "Long-Term Investing Stocks Watchlist". But for now? Well, as I've been saying: I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.

But let's be clear. Seasonals only point to a tendency. Not an absolute rule. Last September, we rallied through the whole thing. We'll see.



Some time ago, I had a series on "How to Begin". We discussed getting started with Investing, rather than trading. Well today, we're going to talk about the mechanics of your first trade, as opposed to your first investment ... (video included)



Tomorrow, we discuss discuss - the emotion behind your very first trade ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$309.56
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.

Wednesday, August 27, 2008

Your First Investment Purchase: Emotional Discipline

Quotations of the Day:

"We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'" - Warren Buffett


* * *

Challenge Accounts:

Investing Account Balance:
$302.21
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: We're in the channel from Hades. We need a higher or high, or a lower low to confirm direction. As for myself today? I'm off to Cedar Point to ride some rides ...

Personal Investing Thoughts:
My DRIP remains on for all of my stocks. Now for a while, I've been saying: "I also have my eye on a few stocks for my long term investment portfolio.". I think I'm going to create a sidebar to the right here at my blog - with my "Long-Term Investing Stocks Watchlist". But for now? Well, as I've been saying: I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.


Some time ago, I had a series on "How to Begin". Well, in that series, I discussed that it may be a good idea to get started with Investing, before you get involved with trading. Yesterday I discussed the mechanics that should go into your very first investment purchase. Today, we're going to discuss the emotions that will go into your first investment purchase ... (video included)



Tomorrow, we discuss discuss - the mechanics behind your very first trade ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$302.21
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.

Tuesday, August 26, 2008

Your First Investment Purchase: Mechanics

Quotations of the Day:

"When J.P. Morgan was asked what the stock market was going to do? He replied: 'It will fluctuate'"


* * *

Challenge Accounts:

Investing Account Balance:
$301.79
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: As I said yesterday - chop ... chop ... chop. We're in the channel from Hades. We need a higher or high, or a lower low to confirm direction.

Personal Investing Thoughts: HAVE YA HEARD THE LATEST? Heheh. Yeah, the latest rumor that's put me in a really, really good mood? The cash cow that is Frontline Ltd. is thinking about a 5 for 1 stock split. Which means that the shares will increase by 5, for every share I own.
Now, mind you - they will adjust the price so that I won't instantly increase my asset value. However, that means the next time the dividend is paid? I'll have 5x's the number of shares to DRIP with.

My DRIP remains on for all of my stocks. I got a hold of Covestor to see if they could readjust my one account with them. We'll see how that goes. They have a really great support staff over there. I also have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.



Some time ago, I had a series on "How to Begin". Well, in that series, I discussed that it may be a good idea to get started with Investing, before you get involved with trading. I discuss the mechanics of the very first investment purchase today ... (video included)



Tomorrow, we discuss discuss - the emotions that come with your very first investment purchase ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$301.79
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.

Monday, August 25, 2008

Don't Fall for the Psychological Urgings of the "Mob" (The Mystery of Buy Low, Sell High Explained)

Quotations of the Day:

"I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.." - Warren Buffett


* * *

Challenge Accounts:

Investing Account Balance:
$310.54
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: It's really key to see if we get a continuation of Friday's gains. At this point, we need to make higher high's - in order to confirm that the relief rally is going to continue. For right now? It's just chop, chop ... chop.

Personal Investing Thoughts: DRIP remains on for all of my stocks. I discuss, in today's video, that the DRIP is not reflecting in my audited accounts however. I also have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.



Today we review some thoughts of Warren Buffet, and discuss why these thoughts assist you to accumulate wealth. ... (video included)



Tomorrow, we discuss discuss - your very first investment purchase ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$310.54
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.

Saturday, August 23, 2008

Week in Review for August 23, 2008

Quotations of the Day:

"Hard work's a good distraction." - Scott Westerfeld


* * *

Challenge Accounts:

Investing Account Balance:
$310.54
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: The room that you usually see me record these videos in? Well, I was so graciously informed (ONLY TWO DAYS AGO) that my wife plans to paint it. Not planning on trading, as long as the disaster that is fixing up this place continues on around me, as I'm trying to work. Can you tell I'm frustrated?

Personal Investing Thoughts: DRIP remains on for all of my stocks. I have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.



Welcome to the week in Review. We discuss distractions, the DOW, the U.S. Dollar, and colliding trends ... (video included)



On Monday, we discuss an old mantra of Warren Buffett ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$310.54
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.

Friday, August 22, 2008

Dividend Investing, DRIP's and Taxes

Quotations of the Day:

"I'm proud to be paying taxes in the United States. The only thing is I could be just as proud for half the money" - Arthur Godfrey


* * *

Challenge Accounts:

Investing Account Balance:
$302.35
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: The room that you usually see me record these videos in? Well, I was so graciously informed (ONLY TWO DAYS AGO) that my wife plans to paint it. Not planning on trading, as long as the disaster that is fixing up this place continues on around me, as I'm trying to work. Can you tell I'm frustrated?

Personal Investing Thoughts: DRIP remains on for all of my stocks. I have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.



With Dividend Investing, comes a few complexities. Cost Basis. Taxes on Dividends. Consistent changes to your cost basis, due to DRIP. Believe it or not, there is a way to greatly simplify all of this. (video included)



Tomorrow is the 'Week in Review', if I can get some semblance of sanity in the house around me enough to record it ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$302.35
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.

Thursday, August 21, 2008

What Has Been Termed by Some as "The New Robber Barons"

Quotations of the Day: "You must not defraud your fellow, and you must not rob. The wages of a hired laborer should not stay all night with you until morning" - Leviticus 19:13

"In his day you should give him his wages, and the sun should not set upon them, because he is in trouble and is lifting up his soul to his wages; " - Deuteronomy 24:15

"The workman is worthy of his wages" - 1 Timothy 5:18


* * *

Challenge Accounts:

Investing Account Balance:
$302.21
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: Things feel odd now. That's the best way I can describe it. There is a lot of bearish news, but the market seems to be having a hard time falling right now. When in doubt? ALWAYS - stand aside.

Personal Investing Thoughts: DRIP remains on for all of my stocks. I have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.

I have two shareholder presentations to review today. Two of my tankers. FRO and SFL..

Edit: Sweeeeet! Divvy increases with both of them! Earnings look good, if demand is somewhat weak.



Those who follow my blog here understand that I despise the unethical immoral implications and precepts behind communism. But at times the question arises ... how much money ... is too much money? When should a wealthy persons income be examined by the public at large? I would state that it is when a person becomes what some are calling, the new "Robber Baron".

Although the term 'Robber Baron' has an extensive etymology? The vulgate meaning of this term is a wealthy person who engages in unfair business practices, typically at the expense of the economy of which he is a participant. And yes, I believe we have 'Robber Barons' amongst us today ... (video included)



Wages have held steady within the United States for a long, long time. There are corporations out there, with men who lead well. They are rewarded well monetarily, and raise the wages of their employees. CEO's such as Jim Senegal of COSTCO.

And I'm not saying a million dollar income is a bad thing. Lord, it's a great thing. Jim's salary with bonuses included is 2.9 million dollars a year.

But for those who have led their company to failure, and are deciding to cut the workforce, and cut health care benefits? When wages remain flat for your average worker? When you've slashed your dividend to nothing? For this, CEO's like Rick Wagoner are paid 1.55 million dollars a year before bonuses, and 14.4 million dollars after bonuses? It's that the wage, is not matching the work they have produced. They produce failure, and are rewarded tremendous amounts of money for it.

If GM or Ford has to cut their workforce, cut benefits, cut health care? Then the entire board should not receive a dime in compensation. The workman is worthy of his wage. If you produced nothing but failure and unemployment? Then why should you be paid for it? If this is supposed to be a capitalist society? Well, then the rules of the game should be adhered to for everyone. Communism is supposed to be the system where you're rewarded for doing nothing, and all incentive is destroyed.

That leads to what is the biggest insult in this situation. These individuals are trying to hide under the cloak of "Capitalism" and "Free Markets". They are nothing more than Communists. Communists are paid, regardless of failure and mediocrity. The workman is worthy of his wages. If you produce failure, you're not worthy of a wage. These new Robber Barons fail, and they are rewarded for it.

I have NO problem with million dollar incomes for CEO's. If they produce.

Tomorrow I will discuss the implications and complexities of taxes on dividends ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$302.21
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.

Wednesday, August 20, 2008

The Enemy of the Millionaire and Poor Man Alike ... (VIDEO)

Challenge Accounts:

Investing Account Balance:
$295.63
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: I might actually look for a short bias position in the market, but I'd like a small rally to sell from before I do so. If we can get a rally in Gold, we might see a small pullback from the US Dollar.

Personal Investing Thoughts: DRIP remains on for all of my stocks. I have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.


When I was 24 years old? I was making what I considered to be a lot of money. And it was then that I discovered the enemy of everyone's net worth ...

(This post contains video. If you cannot see the included, click this link to go to the exact entry ...)



Tomorrow I will discuss "The New Robber Barons".

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$295.63
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.

Tuesday, August 19, 2008

My Alma Mater is Books. But Which Books?

Challenge Accounts:

Investing Account Balance: $304.17
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: We now have significant trend line in place for a lower play. If we break higher than the previous highest high, then I'd believe the relief rally is continuing. But if we're at decision time. If we rally, and then break lower than todays low? I think that will indicate a change in trend.

Personal Investing Thoughts: At the start of this relief rally, I bought a bit of GE for my personal investing accounts. But honestly, it was a pretty small amount. 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 .

I've received a series of questions, that sort of relates to the same topic. These questions are along the lines of "Where did you receive your education? Where did you go to college? What books have you read? What books would you recommend on trading? What books would you recommend on investing? What books would you recommend on investing? Yesterday, we discussed my thoughts on education, where I went to school, and what I thought of it. That led us to a discussion about books. Today I'm going to discuss the top six books I'd recommend ... (video included)



Tomorrow I want to discuss the enemy of millionaire, and poor man alike.

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$304.17
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.

Monday, August 18, 2008

My Alma Mater? Books

Challenge Accounts:

Investing Account Balance:
$313.97
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: For those paying attention, the biggest news is the continuing strength in the US Dollar. Gold is now down over $200 from it's highs. Europe is really struggling. In my personal accounts, the CRBC trade swung above $4.11, and settled at $4.23. The resistance now is at the $4.50 region. We break that, and we're on to $5.00, which is about my profit goal. That'd give me a risk reward ratio of about 1 risk to 3 reward, which I'd be more than happy with.

Personal Investing Thoughts: At the start of this relief rally, I bought a bit of GE for my personal investing accounts. But honestly, it was a pretty small amount. 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
.


I've received a series of questions, that sort of relates to the same topic. These questions are along the lines of "Where did you receive your education? Where did you go to college? What books have you read? What books would you recommend on trading? What books would you recommend on investing? What books would you recommend on investing? I'm going to discuss that topic, in the videos in the next two entries ...



Tomorrow I will answer the question "Which books?" ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$313.97
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.

Saturday, August 16, 2008

The Week In Review: Inflation Numbers and the Continuing Strength in the US Dollar

Challenge Accounts:

Investing Account Balance:
$313.97
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: For those paying attention, the biggest news is the continuing strength in the US Dollar. Gold is now down over $200 from it's highs. Europe is really struggling. In my personal accounts, the CRBC trade swung above $4.11, and settled at $4.23. The resistance now is at the $4.50 region. We break that, and we're on to $5.00

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
.


Welcome to the 'Week in Review', where we discuss inflation, the inflation markets, and the U.S. Dollar. Please excuse that when I show the chart in the following video? I say: "This chart of oil". I mean, the chart of the US Dollar ...



On Monday, I begin to discuss my own financial education, and the books I'd recommend.

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$313.97
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.

Friday, August 15, 2008

Investing Series: Dogs of the DOW as the Kernel to my Investment Philosophy

Challenge Accounts:

Investing Account Balance:
$310.33
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: Well, we received the up-day that I was looking for. What I'm finding very interesting right now? All of this bearish news is not moving the 'inflation markets' appropriately; or should I say - as they naturally would. Which I see as somewhat bearish for gold, bullish for paper. In my personal accounts, I'm still within the CRBC trade. Looking for a break above $4.11

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
.


How did I build my investment philosophy? What is the kernel that I built my investment philosophy from? I discuss that in todays video ...

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



The next entry in this "Investment Series" will reference an older entry of mine, which will emphasize the difference between investing, and trading ...

* * *

Investing Account Balance: $310.33
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.

Thursday, August 14, 2008

Debt Free is the New Sexy ...

"Debt is the slavery of the free" - Publilius Syrus

Challenge Project Accounts:

Investing Account Balance: $301.09
Stock / Futures Trading Balance: $954.13
Interest Bearing Balance: $47.39

Personal Trading Thoughts: In my personal accounts, I'm still within the CRBC trade. I think tomorrow should prove interesting, and I'm looking for an up-day. If we get that, then I'll probably stick to my profit target of $5.00. If not, I may take my profits sooner.

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 .


In todays video, we'll talk about debt ratios, recessions, and the new sexy ...



Tomorrow, I'm not going to discuss trading. Tomorrow I'm going to discuss how I got my start, with investing..

* * *

Challenge Project Accounts:

Investing Account Balance:
$301.09
Stock / Futures Trading Balance: $954.13
Interest Bearing 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.

Wednesday, August 13, 2008

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

Challenge Accounts:

Investing Account Balance:
$316.98
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.

Tuesday, August 12, 2008

What Questions Should You Be Asking During a Period of Drawdown?

Challenge Accounts:

Investing Account Balance:
$332.73
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
.


Let's say you have a couple of losing trades. You go into a period of drawdown. What sort of questions should you be asking yourself? I discuss that in the following video ...



Tomorrow, I'm going to discuss yet another reason for the Challenge Project. I'm going to discuss my own economic background ...

* * *

Investing Account Balance: $332.73
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.

Monday, August 11, 2008

The Biggest News of Friday? Not the DOW or Oil. The U.S. Dollar

Challenge Accounts:

Investing Account Balance:
$324.82
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: Mondays are usually 'watch' days, and I scout out trading possibilities. Still long in my personal accounts, CRBC.

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
.


The stock market rallied 302 points on Friday. Oil prices slid down again, almost $5.00. But the biggest news of the day?

The U.S. Dollar. I discuss that in today's video ...



Tomorrow, I'm going to discuss what to analyze, when you hit a period of drawdown ...

* * *

Investing Account Balance: $324.82
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.

Saturday, August 9, 2008

Week in Review: August 9th, 2008

Challenge Accounts:

Investing Account Balance:
$324.82
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: I'm very wary of this rally in the stock market. It's pretty volatile. I'm still majority cash. I had a small swing trade in CRBC in my personal accounts that's shaping up well and I'd like to see CRBC get to $5.00 on a long term swing trade ... but honestly, there's not a lot of capital dedicated for that trade. Just watching and waiting really.

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
.


This is the weekly recap video ...



On Monday, I'm going to discuss the US Dollar in a bit more detail ...

* * *

Investing Account Balance: $324.82
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.

Friday, August 8, 2008

Choosing a Broker

Challenge Accounts:

Investing Account Balance:
$321.81
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: Nothing much going on. If I trade on Friday? It'd only be a day-trade. I don't see holding anything into the weekend right now.

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 ...


When you're ready to put money on the line, the question becomes: "What is the best broker"? I address the points that you need to consider when it comes to deciding on who to use for a broker in the following video.



* * *

Investing Account Balance: $321.81
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.

Thursday, August 7, 2008

Emotional Discipline: AFTER the trade

Challenge Accounts:

Investing Account Balance:
$332.37
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: Exited the Ford trade in pre-market. In todays video, I'm going to discuss emotional discipline - AFTER a 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 ...


I exited the Ford swing trade, at $4.87, for a small loss. This gives me an opportunity to discuss emotional discipline ...



Tomorrow, I'm going to talk a bit about brokers.

* * *

Investing Account Balance: $332.37
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.

Wednesday, August 6, 2008

Money Management Principles: Watch Trade Management in Practice - Ford Motor (F)

Challenge Accounts:

Investing Account Balance:
$334.13
Stock / Futures Trading Balance: $982.04 (Within a Trade)
Online Savings Balance: $47.39

Personal Trading Thoughts: I discuss my trading thoughts in the two videos below.

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 ...


Watch my thought processes, as I start a trade in both my personal accounts, as well as the Challenge Project accounts with Ford (F) at $5.02 on a buy.

There are two videos to watch. I will demonstrate trade management thoughts, decisions, and techniques based on time frame, market conditions, and risk reward money management decisions. I recorded my thoughts as the market progressed.

Here's the first video:



Here's the second video:



* * *

Investing Account Balance: $334.13
Stock / Futures Trading Balance: $982.04 (Within a trade)
Online Savings Balance: $47.39


Total Trades: 5 (Within the 6th, but the statistics only cover 5)
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $62.40
Average Loss: $79.81
Accuracy Rate: 40%
Average Reward: $175.34
Risk : Reward Ratio: 1 : 2.2
Trading Money Gain / (Loss): Up + $111.50

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.

Calculating Risk / Reward Ratios

Challenge Accounts:

Investing Account Balance:
$334.13
Stock / Futures Trading Balance: $$1,009.79 (Within a Trade)
Online Savings Balance: $47.39

Personal Trading Thoughts: Within a long Ford Trade. Currently up about 7 cents. Any personal accounts with about 420 shares - would take the profits much quicker, than the Challenge Project account; where there is only 185 shares. And with less shares, the commissions hurt a tad bit more. Probably would dump out of the trade at about 4.78 or so. Whenever the 10 minute chart (whose trend is up) would show me that the trend is changing.

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 ...


How do I think about my risk reward ratios? Well, I consider them before I ever get in the trade ...



* * *

Investing Account Balance: $334.13
Stock / Futures Trading Balance: $1,009.79 (Within a trade)
Online Savings Balance: $47.39


Total Trades: 5 (Within the 6th, but the statistics only cover 5)
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $62.40
Average Loss: $79.81
Accuracy Rate: 40%
Average Reward: $175.34
Risk : Reward Ratio: 1 : 2.2
Trading Money Gain / (Loss): Up + $111.50

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.

Search Investing and Trading Articles and Products