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Monday, September 21, 2009

Monday Challenge Project Summary: September 21st, 2009

Previous Challenge Project Balances:

Investing Account Balance: $535.20
Stock / Futures Trading Balance: $1,521.21
Online Savings Balance: $150.30

If you're not sure what the Challenge Project is? The original video explanation 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.

For this week, the $25.00 weekly deposit is being transferred to the Investing Account.

I'm not sure if you guys have been watching JNJ or KO lately, but they've been on a bit of a tear lately. It's about time too. :) They've lagged behind the rest of the market in the last leg of this rally. So the investment account has surged ahead a little. Regardless, we still have much to do for that Investing Account.

I'm looking to greatly increase our cash reserves for that account, so I can begin to look at 'scaling' strategies, as well as to be able to "Dollar Cost Average" any of the existing positions I already have, if the situation arises to do so.

As well, I have closed the account with ING Savings. As I mentioned earlier last week, as well as in the "Week in Review" podcast, I am sick to death of these banks getting themselves in trouble, and then seeking help from debt ridden governments. The money was therefore transferred to the my personal credit union.

Here are the new balances for each of the Challenge Project

Challenge Project Balances After Rule No. 2 Deposit:

Investing Account Balance: $570.54
(YTD cash equity up about 17.5% Return is about -11%)

Investing Account Balance Since Inception:
  • 4.1064 shares of KO (DRIP on)
  • 3.0301 shares of JNJ (DRIP on)
  • Cash: $164.12
  • 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%)

Trading Account Balance Since Inception:
  • Additional $37.53 available from slush fund

Savings Balance: $150.30
(YTD cash equity up about 22.3%. Return on Capital is about 1.49%)

Savings Account Balance Since Inception:
  • $37.53 for a Slush fund / Drawdown Kill Switch fund
  • $75.24 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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