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Tuesday, December 15, 2009

Closing up Trading for the Year of 2009

$500 Challenge Project Accounts:

The Three "Sisters":

Investing "Sister" Balance: $783.94
Trading "Sister" Balance: $1,596.21
Interest Bearing "Sister" Balance: $175.30
Total Challenge Project Funds: $2,555.45

First of all, a quick note for the Challenge Project ... another dividend was received on the 15th, this time by the McDonalds (MCD) stock. Since the Dividend ReInvestment Plan was turned off for the Challenge Project for McDonalds (MCD), then another $1.10 cash was added to the Investing account share basis; bringing the total cash in the Challenge Project Investing Account to $213.51, most of which is reserved for dollar cost averaging the dividend stocks are already held.

In addition, like many professional traders ... I'm closing up shop for 2009.

The markets are getting 'thin', and will only become more 'thin' until the end of the year. In other words, a lack of liquidity tends to cause them to behave erratically. I said it elsewhere ... 2009 is drawing to a close. Many professional traders begin to 'close up shop' until the next trading year begins. They become very 'hesitant' to damage any of the gains that they've experienced during the previous 12 months. And that's not unreasonable. After all, this is a business where one dumb decision can undo a lot of great work.

Monday was a really messy day for me. Not horrendous. Just ... messy. I made one mistake that could have cost me dearly. Thankfully, I squeaked out of it. I'll have a video on that later on this week. Actually, I'll have quite a few videos in the future that deal with trading the markets. More "charting" videos. But more on that later.

So I'm going to try to enjoy the time off. With the markets behaving erratically, I'm going to join the increasing ranks of traders who start to 'close up shop' for the year. Right now it is as if all traders and investors are playing a game of "last one out of the markets, close the door behind you ..."

I've been working on getting back into shape. I used to run three kilometers three times a week. I barely put in two yesterday. I'll see if I can ramp it up to three by January ...

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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 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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