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Monday, November 23, 2009

Monday Challenge Project Summary: November 23, 2009

Previous Challenge Project Balances:

Investing Account Balance: $710.82
Stock / Futures Trading Balance: $1,571.21
Savings Balance: $175.03
Total Challenge Project Funds: $2,457.06

Please note there is a second blog entry today that gives you the link to a free look at issue #1 of "Airelon's Market Tactics" and a repost of the Happy Hour show on Friday ...

The original video explanation of the Challenge Project that began with $500, 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 Challenge Project INVESTING Account.

We have almost completed our Investing Account "maintenance". However, at the same time, our VaR (Value at Risk) is still exceedingly high. So cash deposits will continue with the Investing account for some time, even after we have covered the reserve needed for future Dollar Cost Averaging ...

It's a light week, with the approach of the observance of Thanksgiving in the United States markets. Volume typically becomes light, and trading usually turns choppy; so I really can't imagine any action will be taken this week with the Challenge account.

Remember, the DRIP Dividend ReInvestment Plan for McDonalds is OFF

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: $747.59
(YTD cash and equity up about 53% Return is about 3.57%)
  • 4.1377 shares of KO (DRIP on)
  • 3.0546 shares of JNJ (DRIP on)
  • 2 shares of MCD (DRIP if now OFF)
  • Cash: $187.41
-$60.00 of this cash I reserve to D.C.A. KO
-$60.00 of this cash I reserve to D.C.A. JNJ
-$80.00 of this cash I reserve to D.C.A. MCD
-This leaves a -$12.59 shortfall for D.C.A. cash
  • Additional $43.00 available from slush fund
Investing Account Balance Since Inception
(Can be Enlarged):

Stock / Futures Trading Balance: $1,571.21
(YTD cash equity up about 55.0%. Return on Capital is about 2%)
  • 3% risk tolerance gives us $47.13 to risk per trade
  • Additional $43.00 available from slush fund
Trading Account Balance Since Inception:
(Can Be Enlarged)

Savings Balance: $175.30
(YTD cash equity up about 42.5%. Return on Capital is about 1.49%)
  • $43.00 for a Slush fund / Drawdown Kill Switch fund
  • $89.30 for a Base Savings
  • $43.00 for Emergency Savings
Savings Account Balance Since Inception:
(Can Be Enlarged)

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 over 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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