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Friday, January 30, 2009

The Low Funded Challenge Account Project: February 2009 (And Broker Statements)

January's Challenge Account Balances:

Investing Account Balance: $400.00 (Average)
Stock / Futures Trading Balance: $1,014.62
Online Savings Balance: $122.97

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

A video summary of my decisions for this month is to be found at the end of this blog entry.

Back in October of 2007, I created sub-accounts from my main brokerages; as a main feature to this blog, and in November of 2007, I began the Challenge Project. Their purpose, as well as the purpose of many of the articles in this blog, is to assist the low-funded trader understand what principles he needs to consider when trying to get started in the markets, or if starting up again because his or her account account has been wiped out. These are actual sub-accounts at my brokerages that I own, and I will look to for growth. I will announce actual trades and investments that I perform in them, and the money management rationals and reasons for my decisions as a means to educate others. I wish to demonstrate that as long as one enters this business with the proper principles, strategy, education and emotional discipline in hand, you can 'make it' in this business.

In the beginning of this experiment, I placed $130.00 with Sharebuilder as a long-term investment account, and I placed $370.00 in the account for trading Futures options. I later added a small ING Savings account that has been built up to a balance of $123.25. Due to the initial investment, I once termed this the "$500 Challenge". Since we now have much more in these accounts than $500 at the end of January, I will term this the "Low-Funded Challenge Project" instead of the "$500 Challenge". At times I will refer to them simply as the "Challenge Project" accounts.

I also had three rules for the "Challenge Project" accounts. At the beginning of each month, I review and consider where we stand, and how those three rules impact the current months decisions. So let's do that for February of 2008.

Rules for the Challenge Account:

1) The initial investment is $500.00, to be split amongst the accounts. After creating the accounts in October of 2007, we had our initial deposited transferred in November of 2007. $130 went to Sharebuilder for longer term investments, and $370 went to the Xpresstrade brokerage for futures options purchases. Xpresstrade was later bought out by "optionsXpress", therefore this is now the optionsXpress account. This account is the 'trading' account, for stocks, ETF's, and futures options. Therefore, rule #1 is always complete.

2) Each month, I can contribute $100.00, that can be split amongst the accounts however I choose. In other words, I can send $30.00 to Sharebuilder, $70.00 to optionsXpress; or $100.00 to optionsXpress, and nothing to Sharebuilder, etc. Last month we deposited $60.00 to the Investing Account, $40.00 to the Trading account, and nothing to the Savings account.

For February 2009's deposits, I decided to send $10.00 to the Investment Account, $60.00 to the Trading Account and $30.00 to the Savings Account.

Since we were properly positioned in the Investment Account to take on another DRIP dividend stock last month? We did this by buying some shares of JNJ, and making sure the DRIP plan for the stock was on. We had no trades last month, and a small amount of interest in the savings account.

I'm probably not going to be engaging in any trades for the Challenge project in February, as 1) The Account Balance is still very, very low, and therefore 2) the primary job is to get the account equity bumped up.

That works out well. Why?

Well, look again to the growth strategy we've had all along. If you note my project strategy video (located here), for a long time, we were looking to get past the first step in this phase of the project. Thus, we were looking for the trading account to have an equity greater than $900.00. We've accomplished this, as we now have a balance of $1,014.62 at the end of January. The next goal is to get the account past $1,100.00. After Februarys Deposit clears, we'll be very close to doing this. But what have I said all along?

That the goal right is not to actively trade that account. It's to get the account equity balance bumped up. I want to say that again. The goal right now, isn't to primarily trade that account. It's to get the account equity balance bumped up. So this works out well.

3) I'll be using regular investment and trade vehicles. Bonds. Stocks. ETF's. Futures Options. I want to wait and bump up the equity, so I probably (probably) will not trade anything in the Challenge Trading account in February.

We're cruising right along ...

(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 ...)



February Balances after Deposit from Rule #2

Investing Account Balance: $410.00 (This will fluctuate with the BAC, JNJ and KO stock)
Stock / Futures Trading Balance: $1,074.62
Online Savings Balance: $153.25 (Before Interest Payment)

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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.

Tuesday, January 27, 2009

Stay Safe and Trade Well ...

"Better is it to go to the house of mourning than to go to the banquet house, because that is the end of all mankind; and the one alive should take [it] to his heart" - Ecclesiastes 7:2

Many of you know by know, that on Thursday night, a good friend of mine was murdered.

For some time I've been using those words as a 'tag line'. "Stay Safe and Trade Well". Little did I know what I was saying, when I said it ...

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click this link to go to the exact podcast entry ...)



Click here to download this podcast.

I'll try to have another entry in the next day or so. Because I want to help.

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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.

Friday, January 23, 2009

BlogTV Show is Cancelled

I've been sitting staring at this screen for about 20 minutes now. My mind can't process information at the moment. A very dear friend of ours was brutally shot and murdered last night in a robbery, while trying to attend to his own fathers funeral arrangements.



Blip.tv version.

I'm going to need a few days off.

Thursday, January 22, 2009

Blog TV Show Tomorrow

Yeup, I have another Blog TV Show scheduled ...



That's January 23, Friday at 5:00 pm Eastern Standard Time ...

Everyone Is a Trader

"How little you know about the age you live in if you think that honey is sweeter than cash in hand." - Ovid (43 BC - 17 AD)

Earlier today, I had a blog entry in which I stated that my focus on trading would intensify during 2009. I'm going to focus on building cash reserves.

I'm going to discuss more of my 'trading thoughts' in the following vlog entry ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)



Here is the link to the blip.tv version of this video.

* * *

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.

Wednesday, January 21, 2009

Wednesday Recap Podcast for January 21, 2009: "Building Cash" Episode

"Once a week, do a thorough review of all your projects in as much detail as you need to. If you do, your systems will work. If you don't, no system will work." - David Allen

This is my Wednesday Recap Podcast for January 21, 2009.

I discuss the market action, how I enter a swing trade, my strategy shift, and "government intervention".

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click this link to go to the exact podcast entry ...)



Click here to download this podcast.

* * *

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.

Whiteboard: Strategy Shift

"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." - Sun Tzu, The Art of War

Well, I'm looking over balances at my accounts. And it's time to make a decision moving forward for 2009. Not simply to maintain what I have, but in the current economic environment to become profitable. Profitability is efficiency.

Here's a look at a portion of my dry erase whiteboard:


So what does that mean? Number one goal? Build cash. Build savings. Any profits from my business ventures? Go to cash reserves.

Following that goal, I am going to be watching the balance sheets at the companies where I have my money, very closely. Namely, ING, optionsXpress and I still have a small portion at Scottrade.

Following the goal of building cash? I'm going to really focus on trading. I've already started doing that in 2008, because my investment portfolio only represents, at the time of this writing - at 17.67% of my total holdings. But I want to distance myself even further from my investment holdings. How do I do that? Build cash. Shrink the percentage of my investment holdings, by building cash. One way to build cash, is to focus even greater efforts on trading.

Following this? I had a decision to make regarding my DRIP stocks for my investment portfolio. This one was a tough decision to make. Do I accumulate more shares, in essence for free, in the companies on the stock market right now through the DRIP programs? At very attractive prices? Or do I build cash by receiving the cash dividends?

I decided to do both. Some brokerages will allow you to engage in partial DRIP. In other words, if you have 100 shares? Use 50 shares to pay you cash dividends, and 50 shares to engage in DRIP; dividend reinvesting for more shares. Unfortunately, those stocks that I hold at Sharebuilder will not allow for partial DRIP. It's all or nothing. So at my Sharebuilder accounts, I will be turning off the DRIP on those stocks that are maintaining their value. For those stocks that lose value, I will turn the DRIP on.

That's the plan moving forward.

* * *

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.

Tuesday, January 20, 2009

What Will It Take to Get Banks Lending Again? (VIDEO)

"There are two levers for moving men: interest and fear." - Napoleon Bonaparte

That seems to be the big question. It seems I hear that question asked every time I turn around. Quite frankly, I know that "they" say there are no dumb questions ... but if ever there was a contender for 'dumb' questions? This one would be among the contestants.

What will it take to get banks lending again?

They've been given all of this money. We hear that fact stated in a variety of ways and with a slew of buzzwords. T.A.R.P. Money supply increases. M3. Deleveraging. Bailouts. Central Bank swaps. You name it. And then financial news stations begin bringing out economic concepts that haven't been heard from in 30 years. DOW Jones theory. TED spreads. Credit markets. Short term paper. It seems like every week your average citizen is besieged with more concepts and terms.

And commentators, or 'financial anchors' on television shows act as if those greedy banks would just take all of that money, and start lending to people? All of our problems would be over. We could return to our overpriced homes, and easy money. So why aren't they lending?

For one moment, let's put aside the fact that many of the loans that were made were based off the money the banks received from a Federal Funds rate that was far too low, for far too long.

And don't get me wrong, I think the banks have been led by some pretty moronic people. And at times, greedy. But is that the problem? Greed? Really? If they were greedy? Then why aren't they just taking all of that money, and doing exactly what they did before? Why is it, that new bubbles are not forming in commodities, or equities? If was as simple as 'bubble' creation, then we'd be out of this mess by now.

So what will it take to get banks lending again?

I discuss that in this vlog entry ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)



It's quite simple. If you can't sell something, it's because there is no market for it. If the banks can't lend? It's because there is no market for what they've become accustomed to selling. Economics 101.

To paraphrase Jack London's 'Wolf Larsen', it's time to grow some legs and stand on them.

* * *

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.

Change in the Feed at "Airelon's Investing and Trading Blog"

Feedburner currently supplies the "feed" for this blog. For those that do not know, a "Feed" is that which strips down all the bells and whistles off a blog, and delivers it in various formats in a syndicated manner.

It seems that Feedburner agreed to turn over all of their feeds to Google, and make them Google accounts. Therefore, as of last night, the feed on this blog has changed. I was told that subscribers would see no difference, but in case you do ... please be aware you may need to 'resubscribe' if you have any problems.

Thanks ...

Dan

Monday, January 19, 2009

Johnson and Johnson (JNJ) Earnings

Earnings report is tomorrow on JNJ before the open. Not expecting a real big surprise here. I hold some JNJ, and have 2.9743 shares of JNJ in the Challenge Project Accounts.

In the 3rd Quarter of 2008, JNJ had a low earnings expectation of $1.04, and a high earnings expectation of $1.16. They reported on October 14th earnings per share of $1.17 per share.

This 4th Quarter of 2008, there is a low earnings expectation of $0.89, and a high earnings expectation of $0.94; which gives a consensus on earnings of about $0.92. We'll see what tomorrow brings ...

Email Question Podcast for January 19, 2009

"Then, enough of that." A stride to the Prime Radiant, and the walls were blank again save for the ordinary room-lighting region along the upper borders. "Sit down here at my desk, and let me talk to you. It is enough for a Psychohistorian, as such, to know his biostatistics and his Neurochemical Electromathematics. But a Speaker must be able to discuss the Plan without mathematics." - First Speaker, Second Foundation by Isaac Asimov

I’ve taken to the habit of cleaning out my email inbox of questions that I’ve received during the week on Monday’s; via a podcast.

This week, the questions range from areas such as a stocks on my investment watchlist, mentoring (and a little annoucement on that route), transferring stocks between brokers, and the velocity of money vs. leakages …

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click This Link to go to the exact podcast entry ...)



Click here to download this podcast.

In short, I believe it's time we take our medicine. The velocity of money will slow down as the recession worsens. You can view this one of two ways. Catastrophic (which is what many central planners believe), or you can try to look at this as a means by which the economy is trying to heal itself. The invisible hand is trying to direct ones to rebuild their savings accounts. To pay off any extra debt, and not accumulate any more. To spend less.

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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.

Saturday, January 17, 2009

Week in Review for January 17, 2009: Opportunities Abound ...

"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it. " - Warren Buffett

This is the week in Review for January 17, 2009.

I discuss three things.

Market Action: The stock market and lower volatility. Why, exactly, is lower volatility a good thing for investing? This leads into my second point which is …

Opportunities: I discuss, somewhat, the trades that I had talked about on the BlogTV show, as well as a possible trade coming up, which leads me into …

Methodology: How do I arrive at a trading decision? What starts the process? How does the process evolve?

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click This Link ...)



Click here to download this podcast.

We'll see everyone on Monday for my "Email Inbox" podcast.

* * *

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.

Friday, January 16, 2009

Did You Miss the Blog TV Show?

"What can you do against the lunatic who is more intelligent than yourself, who gives your arguments a fair hearing and then simply persists in his lunacy?" - George Orwell

Had a lot of fun during the "When's It Going To End?" episode of BlogTV this Friday.

First, we opened up with an anecdotal story and relating it to the possible length of this recession ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click This Link ...)



And then later on in the show, we started to talk about TARP, and one of the most insane comments I've heard, in relation to this bailout ...



We'll see everyone tomorrow during the "Week in Review" podcast

* * *

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.

Blog TV Show ...

About an hour and half until the Blog TV Show.

Here's the link if you've lost it ...

Thursday, January 15, 2009

I'm No Bernard Madoff: Bank Of America (BAC) and Investing Emotion

"The real and effectual discipline which is exercised over a workman is ... that of his customers. It is the fear of losing their employment which restrains his frauds and corrects his negligence." - Adam Smith

Some time ago I very publicly stated that I was going to use 3% of my cash to buy some Bank of America (BAC) for my personal accounts, and I listed my reasons. I bought in at $30.55 and I accumulated some DRIP'd shares afterwards.

Well. Bank of America (BAC) is in the dumper at $8.32 a share now.

So now what? Do I sell? Will I hold? Well, I won't tell anyone else what to do with their assets. But I'm holding. All the way to zero. Simultaneously, I will decrease the size of my Bank of America (BAC) holding. How do I do that? What about the emotions of this failed decision?

I discuss that in this vlog entry ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click This Link ...)



Here is the link to the blip.tv version of the video.

It's a basic risk / reward ratio. Whereas in my trading pursuits, I'm happy with a reward of $2.00 for every $1.00 risked? In my investing pursuits, I seek far higher returns, due to the ability to compound returns through DRIP.

Don't forget the Blog TV Show, Friday, 5:00 pm EST ...

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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.

How To Begin With Investing and Trading (Series): One Traders History ... (VIDEO)

"Each morning sees some task begin, Each evening sees it close; Something attempted, something done, Has earned a night's repose" - Henry Wadsworth Longfellow

Ok. Good information about the world of investing, trading. But many tell me:

"I want to trade. How do I begin? How do I get started?"

It's a question I receive more than any other. Some people want to invest in the stock market. Some people want to day trade. Some people want to swing trade in the stock market. How do you begin?

I begin to discuss that in this vlog entry ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click This Link ...)



The next entry in this series will discuss the topic of actually how to begin. Or at least, what I feel is a good idea ...

* * *

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.

Blog TV Show Tomorrow ...

No, no. I'm not giving up the Blog TV show. :)

I did forget to schedule it however. I have remedied this about 5 minutes ago ...



So that's tomorrow, Friday the 16th of January, 5:00 pm Eastern Standard Time ...

Wednesday, January 14, 2009

Wednesday Recap for January 14, 2009: "Dans Recession Editorial" Episode

"No act of kindness, no matter how small, is ever wasted." - Aesop (620 BCE - 560 BCE)

This "Wednesday Recap" podcast is a little more 'reflective' and 'editorial' in nature. I firmly believe that what has to change to make the world a better place? You don't need 'better politicians'. You don't need 'better economics'. You don't need a 'new idea'.

You need better people. I've said it again, and again and again and again. The problem isn't the economy. The problem isn't the currency. It is people. Humans. Our base nature.

Although at times I have defended Capitalism against what I feel are ‘false charges’. Capitalism did not cause this mess. I more clearly state why I do not consider myself a Capitalist, as this recession begins to heat up. Captialism cannot produce kind-hearted people. And the lack of kindness, is how the Bernard Madoff's of the world come to exist, and destroy economies ...

(Podcast Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to hear the Podcast ...)



Click here to download this podcast.

* * *

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.

Tuesday, January 13, 2009

Diversify Your Income (VIDEO)

"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." - Warren Buffett

What is it, exactly, that I do for a living? Is this the only area that I receive income from? Is it enough to live on? Can I trade for a living? Can I invest for a living? Can I blog for a living?

I talk about this question, and the topic of diversifying your income in the following video ..

(Video Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to View the Video ...)



Here is the link to the blip.tv version of that video.

By the way, did you guys see those trades I mentioned for this week from the BlogTV show last Friday?

Short on Wheat lined up perfectly from 581, and with an exit for a $700 profit.

Short on Gold lined up as well, and an easy $290 profit.

AVX was never triggered, therefore, I never jumped into that trade. I may just forget that one. We'll see.

* * *

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.

Monday, January 12, 2009

Anyone Take Notes From the BlogTV Show?

At the end of the BlogTV show, I mentioned three trades that I was 'eyeing' up as possibilities, for today? Anyone take notes?

I love this business.

:)

Airelon's "Email Question" Podcast for January 12, 2009

"Do not swear at all, neither by heaven, because it is God’s throne; . . . Nor by your head must you swear, because you cannot turn one hair white or black. Just let your word Yes mean Yes, your No, No; for what is in excess of these is from the wicked one" - Jesus Christ, Matthew 5:34, 37, the Bible

I've taken to the habit of cleaning out my email inbox of questions that I’ve received during the week on Monday's; via a podcast.

This week, the questions range from areas such as a "Cash" position, brokers, and many other questions ...

(Podcast Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to hear the Podcast ...)



Click here to download this podcast.

* * *

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.

Saturday, January 10, 2009

Week in Review for January 10, 2009

"The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself." - Friedrich Nietzsche

This is the week in Review for January 10, 2009.

I discuss three things.

Market Action: The stock market

Plan: I discuss, somewhat, the trades that I had talked about on the BlogTV show

Produce: What I plan to do to produce for the economy that I am a part of (with a bit of an Airelon rant thrown in)

I discuss that in the following "Week in Review" podcast ...

(Podcast Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to hear the Podcast ...)



Click here to download this podcast.

You know, I do know that I should expect it. There's no way that I can put myself out here like this, and not expect to see the 'hata's'. :)

We'll see everyone on Monday for my "Email Inbox" podcast.

* * *

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.

Friday, January 9, 2009

Did You Miss the BlogTV Show?

"Do something Daniel. Even if it's wrong, just do something" - My Father


Had a lot of fun during the "Snowstorm" episode of BlogTV this Friday.

First, we opened up talking about Mr. Madoff and his complete rediculousness ...

(Video Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to View the Video ...)



And then later on in the show, we moved on to a question I've received from some folks ...

Why does Dan not seem as "down" about the economy as others? I discuss that in the following bit that I recorded as well ...



We'll see everyone tomorrow during the "Week in Review" podcast

* * *

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.

Have a Plan for Profit (Risk Tolerance and Trade Management)

"It's difficult being young. But in this world, it's up to a man to watch his back. There's a lot of mad dogs around" - Dirk Struan, from James Clavell's "Tai-Pan"

Why is it, that people cannot separate generosity, and allowing a business to fail? Why is it, that people believe that to be 'kind', you need to support failing businesses no matter what? Why is it, that people believe that by supporting failing business, you are assisting the economy?

I talk about this, as well as a plan for YOUR profitability, in the following video ..

(Video Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to View the Video ...)



When it comes to data statistics? I do receive releases from BLS as the numbers are released. But honestly, I'm the kind of guy that would just rather listen to the actual number than reading through 10 pages of a report that seems to attempt to hide what the number actually is.

Here's the link to my BlogTV page ...

* * *

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.

BlogTV Show Later Today: The "Is It Going to Get Better?" Episode

Thursday, January 8, 2009

Podcast: In Defense of Investing

"Accuracy of statement is one of the first elements of truth; inaccuracy is a near kin to falsehood" - Tryon Edwards

The lack of economic education in our society, at times ... is stunning. And the lack of knowledge leads to many, many, many misunderstandings, intolerance, and unprofitable thinking.

What is truly stunning, is that at times? Some of these inaccurate comments come from people who call themselves investors or traders!

I hear statements like: "Stop being an investor. There is no money in investing!"

or

"The stock market is for everyone. Whoever has money, you invest your money by trading stocks. It's not for any particular group."

or

"Those fat cat investors do not produce or provide anything for the economy"

or even this one:

"Dan is a day trader"

I challenge those ideas, and others, in the following podcast ...



The one addendum I would put on this podcast? Is don't forget that stock investors receive a partial 'share' of the company that they have invested with. And with that share, comes voting rights in the way the company is run. Just something to keep in mind.

You can download this podcast here.

Don't forget, on Friday, January 9, 2009 at 5:00 pm EST, we have the Blog TV show! That's tomorrow!

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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.

Wednesday, January 7, 2009

Wednesday Recap Podcast for January 7, 2009

"The older I get the more wisdom I find in the ancient rule of taking first things first. A process which often reduces the most complex human problem to a manageable proportion." - Dwight D. Eisenhower

This is my Wednesday recap podcast for January 7, 2009.

Perhaps I need to get myself a little better organized. Or perhaps I really need to learn to start saying "no" a little more lately when someone asks me to do something.

Because when you have too much on your plate? It will start to affect your trading. That's happened to me this week, which I discuss, along with other news, in todays "Wednesday Recap Podcast" ...



You can download this podcast here.

Don't forget, on Friday, January 9, 2009 at 5:00 pm EST, we have the Blog TV show ...

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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.

Tuesday, January 6, 2009

I Knew I Liked This Guy ...

Although the board still has to approve recommendation by Ken Lewis at Bank of America (BAC); it was recently reported at the Wall Street Journal Online as recommending:

"... he and his top lieutenants receive no bonuses for 2008, saying he expects the bank's final results to be below expectations, according to an internal memo issued today."

I mean, let's face it. It's sort of a gimme. It's sort of common sense.

Strange though, that not all CEO's in the current environment are taking this common sense approach ...

Note: I hold an investment position with Bank of America (BAC)

Challenge Project Investment: Johnson and Johnson (JNJ)

Last night, I had the order in at the Sharebuilder investment Challenge Account to purchase $180.00 worth of JNJ today. Still waiting on a fill. Since it was a single time automatic investment purchase? Then the comissions will only be $4.00.

As I discussed in this vlog entry, whereas I usually spent about $230.00 per dividend DRIP stock? The market has fallen to the extent that I can properly position myself with a purchase of only $180.00.

Edit: Filled with 2.9743 shares at $59.173587

Airelon's Investing and Trading Thoughts: January 2009 (We Cannot Predict)

Challenge Project Accounts:

Investing Account Balance: $480.73
Stock / Futures Trading Balance: $1,014.62
Online Savings Balance: $123.25


I think, perhaps at times, we gravitate towards various outlooks in the markets because of the things we have experienced in life. There are many ways to make money in the stock market.

Allow me to share what I've learned, why, and what I plan to do for January, 2009 ... ...

(Video Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to View the Video ...)



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Challenge Project Accounts:

Investing Account Balance: $480.73
Stock / Futures Trading Balance: $1,014.62
Online Savings Balance: $123.25

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.

Monday, January 5, 2009

Airelon's "Email Question" Podcast for January 5, 2009

"For everything there is an appointed time, even a time for every affair under the heavens: ... a time to keep quiet and a time to speak" - The Bible, Ecclesiastes 3: 1, 7

I've taken to the habit of cleaning out my email inbox of questions that I’ve received during the week on Monday's; via a podcast.

And wow. Have I ever received a ton of questions and comments this week that I would like to address.

They range from areas such as my "Low Funded Challenge Project", to money management, to emotional discipline, to discussing religion and my faith on my blog, where I buy my silver from (Northwest Territorial Mint) to investment scaling and a few other points ...

(Podcast Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to hear the Podcast ...)



Click here to download this podcast. I'm going to get up the vlog entry regarding my thoughts for January 2009, as soon as I can ...

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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.

Saturday, January 3, 2009

The First "Week in Review" for 2009

"Collective fear stimulates herd instinct, and tends to produce ferocity toward those who are not regarded as members of the herd." - Bertrand Russell

In 2008, the DOW collapsed to the 8,000 range and began what is a very serious recession.

What do we do?

Do we react with fear? Do we talk about 'just how bad things are'? Well, as we all know, I do talk about how bad things are. But do we just leave it at that? Or is there opportunity with the DOW Jones? Of perhaps ... purchasing (gasp) stock?

Well, if things are so bad, and even I believe they may get worse? Why would I purchase stock as an investment? How would I adhere to the money management principles that I preach so heavily? How would I control my risk?

I discuss that in the following "Week in Review" podcast ...

(Podcast Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to hear the Podcast ...)



Click here to download this podcast.

Do not allow the fear of bad times, to paralyze you from taking action for your profit 5 years down the road. Buy on the cheap, and you can only do that when people are afraid. Control your risk as best you can, and keep your exposure low.

We'll see everyone on Monday for my "Email Inbox" podcast. I will also have a vlog entry on "Airelon's Thoughts for January 2009"

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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.

Did You Miss the Blog TV Show?

"We are all faced with a series of great opportunities brilliantly disguised as impossible situations." - Charles R. Swindoll

We talked about many things on the BlogTV Show this Friday. Here are a couple of clips ...

We started off talking about the business opportunities that may abound in this sort of environment.

(Video Included. If you are viewing this Blog Entry From an Email or Other Area, you may need to visit the Entry on the Blog to See the Video)



We then started discussing the sociological implications of a serious economic downturn ...



I'll try to have my "Week in Review" Podcast up by the end of the day ...

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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.

Friday, January 2, 2009

Reminder: BlogTV Show Starts in a Few Hours ...

Don't forget, 5:00 pm today, EST, about 3 hours and 12 minutes from the time of this writing? We'll have the BlogTV Show.

The link to my BlogTV page is here

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