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Monday, August 31, 2009

Monday Challenge Project Summary: August 31, 2009 (VIDEO)

Previous Challenge Project Balances:

Investing Account Balance: $481.73
Stock / Futures Trading Balance: $1,521.21
Online Savings Balance: $150.15

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

Rule No. 2 of the Challenge Project states that each month, we can divvy up $100.00 as we wish between the various challenge project accounts. Some time ago I stated that I may split up Rule No. 2, into weekly segments; or, $25.00 a week.

The investing account continues to hold on to the SPY hedge option. I will be adding equity to this account in the near future. As I stated last week, I want to begin focusing on increasing the capital in the Challenge Investing Account. But ... not this week. As a matter of fact? I'm not going to send any money to the Challenge Project Accounts this week.

Why? Well, I'll discuss that in the video entry below ...

(Video Included. If you're seeing this entry elsewhere and cannot play the video? Click this link to go to the exact blogged vlog entry ...)

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

Challenge Project Balances After Rule No. 2 Deposit:

Investing Account Balance: $490.53
(YTD cash equity up about 0.98% Return is about -16.4%)
  • 4.1064 shares of KO
  • 3.0301 shares of JNJ
  • 1 SPY 80 Put - September Hedge
  • Cash: $89.12
  • Additional $37.53 available from slush fund
Stock / Futures Trading Balance: $1,521.21
(YTD cash equity up about 50%. Return on Capital is about 2%)
  • Additional $37.53 available from slush fund
Online Savings Balance: $150.15
(YTD cash equity up about 22%. Return on Capital is about 1.49%)
  • $37.53 for a Slush fund / Drawdown Kill Switch fund
  • $75.09 for a base savings
  • $37.53 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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