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Monday, October 5, 2009

Monday Challenge Project Summary: October 5, 2009

Previous Challenge Project Balances:

Investing Account Balance: $591.82
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.

The biggest news of the last week, was that I transferred the Challenge Project trading funds away from optionsXpress, to the ThinkorSwim brokerage. That has been accomplished as of today.

We're continuing to build cash in the Investing Account. As noted in the balances below, some of this cash is reserved, so that we can better dollar cost average the positions that we already have in Coca-Cola (KO) and Johnson and Johnson (JNJ). Therefore, if either Johnson and Johnson (JNJ) or Coca-Cola (KO) takes a dive in their stock price? Then I will buy more shares, at a better price, thus lowering my overall "cost basis" or average price.

Here are the new balances for each of the Challenge Project, after this weeks deposit ...

Challenge Project Balances After Rule No. 2 Deposit:

Investing Account Balance: $619.36
(YTD cash and equity up about 27.5% Return is about -1.5%)
  • 4.1377 shares of KO (DRIP on)
  • 3.0546 shares of JNJ (DRIP on)
  • Cash: $214.12
-$60.00 of this I reserve to D.C.A. KO
-$60.00 of this I reserve to D.C.A. JNJ
-This leaves $94.12 for cash for new purchases
  • Additional $37.53 available from slush fund
Investing Account Balance Since Inception:


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
Trading Account Balance Since Inception:

Savings Balance: $150.30
(YTD cash equity up about 22.3%. Return on Capital is about 1.49%)
  • $37.53 for a Slush fund / Drawdown Kill Switch fund
  • $75.24 for a Base Savings
  • $37.53 for Emergency Savings
Savings Account Balance Since Inception:

Total Challenge Project Growth Since Inception:

We'll be back to the Challenge Project, next Monday.

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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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