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Monday, August 3, 2009

Challenge Project Summary: August 3, 2009

Previous Challenge Project Balances:

Investing Account Balance: $503.19
Stock / Futures Trading Balance: $1,464.14
Online Savings Balance: $100.06

The original video explanation of the Challenge Project is to be found here.

Some time ago I stated that I may split up Rule No. 2, into weekly segments; or, $25.00 a week. Rule No. 2 states that each month, we can divy up $100.00 as we wish ...

For this week, the $25.00 weekly deposit is being transferred to the Trading Account. We'll add to the bit of GLD put profits we took last week, and help buttress that accounts growth.

The investing account continues to hold on to the SPY hedge option. I will be adding equity to this account, as I have stated that I would love to have about $700.00 cash in that account come this November. We'll see how that turns out.

The savings account received $0.09 in interest payments for July, and continues to grow from Rule No. 2 deposits; which in turn supports the investing and trading accounts.

So the account balances, at this point, read as follows:

Challenge Project Balances After Rule No. 2 Deposit:

Investing Account Balance: $508.25
  • 4.1064 shares of KO (DRIP is on)
  • 3.0301 shares of JNJ (DRIP is on)
  • 1 SPY 80 Put - September Hedge
  • Cash: $89.12
  • Additional $25.00 available from slush fund
Stock / Futures Trading Balance: $1,496.21
  • Additional $25.00 available from slush fund
Online Savings Balance: $100.15 (Interest Paid)
  • $25.00 for a Slush fund / Drawdown Kill Switch fund
  • $50.15 for a base savings
  • $25.00 for Emergency Savings
We'll be back to the Challenge Project, next Monday ...

* * *

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 13 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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