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Thursday, April 30, 2009

The Low Funded Challenge Account Project: May 2009 (VIDEO)

Last Month (April 2009) - Challenge Project Balances:

Investing Account Balance: $420.00 (Average)
Stock / Futures Trading Balance: $1,415.02
Online Savings Balance: $33.93

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 $33.93. 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 April, 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 May of 2009.

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 $10.00 to the Investing Account, $60.00 to the trading account, and $30.00 to the Savings Account. We also transferred $150.00 out of the savings account (Using the Savings Account as a type of slush fund), into the trading account.

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

3) I'll be using regular investment and trade vehicles. Bonds. Stocks. ETF's. Futures Options. I'll explain my ideas regarding trading in May, in the following vlog entry ...

(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 ...)



May 2009 Balances after Deposit from Rule #2

Investing Account Balance: $
430.00 (This will fluctuate with the BAC, JNJ and KO stock, as well as dividends paid)
Stock / Futures Trading Balance: $1,422.92
Online Savings Balance: $63.93

* * *

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, April 29, 2009

Now ... Now We're In It ...

For those who are interested? For those curious as to what 'stage we are in'

The preliminary reports of the GDP (Which will probably go through a few revisions before the final 'official numbers') show that the economy, for the first quarter of 2009, has shrunk another 6.1%

The good news is that the recession of 2008 is now over. The bad news is that according to that number, this means that the Depression of 2009 has begun.

What constitutes a Depression, and Recession is generally the peaks and troughs of the GDP numbers.

Or, or if you don't like you the GDP definition, you can always head down to your local 'tent city'. We have one that moves around in Detroit.


So unfortunately, it looks like again, I was correct. A few months ago, I said both here, and here that a Depression was unavoidable. I had hoped I was wrong.

I haven't been wrong that often during this mess. And unfortunately, I wasn't wrong this time either.

Would you Like to Meet my "Dan" ?

"There is more happiness in giving than there is in receiving" - Jesus Christ, Acts 20:35

I receive emails, pm's, and comments, like the following message, many, many times throughout the day. Comments and messages such as this one:

"Thanks for putting up all those videos on investing, trading and money management.

I'm currently a business - finance student in College and found your personal experiences to be way more helpful than the majority of concepts taught in our books."

I could list many messages like this, as I receive many emails and comments like this, and I save them all. I'm very thankful for them, and very thankful for the opportunity to assist others. My reward, comes from helping.

Would you like to listen to the man that got my head screwed on straight? Would you like to listen to my personal "Airelon"? Dan's "Dan"? I'm going to link you to two videos. They are videos by Larry Williams. They are videos that I have reviewed many times, and to this day, I still review them from time to time.

This is the man that set me straight. His name is Larry Williams.

Go to this link. You should watch both of the videos under the "Live Presentations". Watch both videos; Futures Presentation 1, and Futures Presentation 2.

What is in those videos? Is better than what I've said in 400 + blog entries.

Gold Jerry.

Gold.

* * *

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, April 27, 2009

Challenge Project Trade

I had a small loss today in the Challenge Project accounts of 3 points in SBN9 (14.02 to 14.05)

Now I already initiated the deposit for May's numbers (I'll have that blog entry probably tomorrow). So the balance, to that point, was $1,475.02, as I had already added $60.00 and it cleared pretty quickly.

When I saw the trade move against me, I instantly cut it, regardless of what would happen in the future. The name of the game is capital preservation. So the account now stands at $1,422.92. The Drawdown kill switch has been hit, which means that we will follow the money management strategy we came up with, and not trade again, until the next deposit from Rule #2 when the account will stand at $1,522.92. However, since I kept the loss very small on this scalp? (The risk reward was 1:1) Then our account equity is still higher in May, than April's account equity of $1,415.02.

I ended up a bit whipsawed? That will happen to any trader from time to time. But at the same time, the capital was preserved. Money management.

* * *

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.

New "Welcome" Video and Format Changes ...

In the space where I usually have placed a video regarding the information that "Informed Trades" offers, I will be placing a "Welcome" explanatory video for this blog.

I've enjoyed having that video up for Dave, but Google Adsense has informed me that they are removing the video units for Adsense. I therefore figured that it might be a good time to insert a video that 'officially welcomes' ones to this blog. I may be making other formatting changes to the blog throughout the day ...

Saturday, April 25, 2009

Week in Review: Range-bound (PODCAST)

"Many marriages would be better if the husband and the wife clearly understood that they are on the same side." - Zig Ziglar

Welcome to the "Week in Review" !!

We seem to be bound within this "range" or channel in the stock market. We're slightly up, but still bound within this range. At the same time? The Bonds have been falling. I discuss the implications of these moves within the following podcast ...

(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.

Friday, April 24, 2009

Red Wings Sweep Columbus Blue Jackets

Ok, I just have to sneak this in here ...

The Detroit Red Wings swept the Columbus Blue Jackets in the series 4-0 last night, by defeating Columbus 6 to 5. So, like a geek, I changed the costume of one of my characters in the MMORPG, City of Heroes ...


Columbus? You have nothing to be ashamed of. Yes, it was a sweep, but I truly wish Columbus didn't have to face the defending Stanley Cup Champions on their very first round. Not only did they have to face the defending Stanley Cup Champions, but they had to face the Detroit Red Wings for crying out loud. And Columbus really turned on the heat last night. The lost, but they lost very well.

Thursday, April 23, 2009

Oh Covestor, Whatever Shall I do With You?

"Do not put your faith in what statistics say until you have carefully considered what they do not say." -William W. Watt"

Those who have followed this blog know for some time know that I've had a rather tenuous relationship with Covestor.

What is Covestor? Well, let me quote Wikipedia on this one:

"Covestor is an online real-trade sharing service to enable self-directed investors to compete with professional fund managers. Launched in June 2007, and founded on the belief that successful investment strategy is not the sole province of money management firms, Covestor enables investors to share real investment decisions, gain recognition and earn fees by helping others" - Wikipedia

Basically, it works like an auditing service. Any investment decision I make? It audits that decision, and as a third party demonstrates that publicly, yes ... 'Dan is truly trading and investing his money, and that Dan isn't making this stuff up. He really does this, and truly made that trade.'

Well ... sort of. That's the theory.

Unfortunately the 'theory', and the actual execution are far removed from one another. I have three Covestor accounts at the current time, and all of them are very much removed and below my actual performance. Why? Because Covestor a) does not track cash, b) does not track DRIP deposits and accumulation on my investing accounts, c) does not track gains and losses made on Commodity Futures or Index Futures, and d) does not track gains and losses made on Futures options.

I instantly fell in love with the concept of Covestor. A third party that could demonstrate to anyone that I truly trade and invest my money. A third party that could demonstrate that I know what I'm talking about. But as those who have followed this blog for sometime know, every one of the above asset classes is very important to the way that I trade and invest my accounts.

I am slowly coming to the realization that if you only actively trade equities? Then Covestor is a wonderful auditing service. But for someone like myself? A DRIP dividend investor who also actively trades? At times, trading derivatives? Well, it really does nothing. In fact, it's hurting my actual image as an investor, and a trader.

For example, look and click on the following widget that I often include on this blog that audits my Challenge Project Trading Account:


Not too hot. Sure it's beating the market and every mutual fund out there, but that's an audit of a trading account. It should be doing much better since trading is my actual business. That's the account that I use to demonstrate to the low funded. And the low funded need to be doing much better than what that widget demonstrates.

But remember, Covestor does not track my gains and losses made with Commodity Futures, or Futures options. It does not track cash. And not a few of my last trades have been with Commodity Futures Options, and Commodity Futures contracts. Therefore, all of the results that Covestor demonstrates are completely skewed.

So what is my actual perfomance? Well, here is my account equity for the trading account as it has actually grown since the Challenge Project began:

(Click to Enlarge this Image):
That is far removed from what Covestor shows:



The following is a snapshot from my broker, showing trades were not reflected in Covestors numbers in just the last 30 days:

(Click to Enlarge this Image):

And with such a tiny account? Those numbers have a great deal to do with my actual performance.

So I've come to the difficult decision that I will no longer include Covestor widgets on this blog. If anyone wishes for me to display some proof of the trades that I discuss? I will be more than happy to provide broker snapshots as I did with the above images.

* * *

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, April 22, 2009

Money Management: Accuracy Rate and Psychology (VIDEO)

"Trading appears deceptively easy. When a beginner wins, he feels brilliant and invincible. Then he takes wild risks and loses everything" - Dr. Alexander Elder, from the book "Trading for a Living"


Although I have discussed Accuracy rates previously? I thought it best to examine them a bit differently, once again. How accuracy relates to your account size, and the psychological impact that accuracy rates have on your trading.

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




* * *

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, April 18, 2009

Week in Review: How to Get Out of Cash? Cautiously (PODCAST)

"In each action we must look beyond the action at our past, present, and future state, and at others whom it affects, and see the relations of all those things. And then we shall be very cautious." - Blaise Pascal


I received an excellent question from Joe (newutubejunkie) that is very appropriate, considering the recent rally. That basically can be summarized by asking:

"Is Dan considering moving back into investing, or staying in cash? ..."

So how am I going to get out of my majority cash position? I'm in the same boat. I'm sitting here with a lot of cash. And a man, and the economy never gets ahead by staying totally cash. So how am I going to approach moving my cash in my investment portfolios? Is there an exit strategy?

Very, very cautiously. I detail my 'cautious' ideas and plans, in the following podcast ...

(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.

Did that ... gasp ... just turn into an honest to god "Investing" podcast?

I'm having to develop an 'exit' strategy from being majority cash, and at the same time, approach this new 'Huge Government Paul Krugman Dream Come True' economy with a great deal of caution.

* * *

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, April 17, 2009

The Fisherman and the Investment Banker (PODCAST)

"Then he said to them: 'Keep your eyes open and guard against every sort of covetousness, because even when a person has an abundance his life does not result from the things he possesses'" - Jesus, the Christ, Luke 12:15

On this beautiful Friday afternoon? Well, I’m a bit reflective.

Why do we trade? Why do we invest? What’s the point?

To make money. Really, any other answer? To my mind? Well, it doesn’t really justify all of the hard work. Hard work should be rewarded monetarily.

However, the question becomes, once you’ve made some money?

Now what?

(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.

As Bernie Mac used to say: "Life is no dress rehearsal"

See everyone at the "Week in Review" tomorrow, and I'll see everyone else in the Ventrilo server on 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.

Thursday, April 16, 2009

Market Myths and Idioms (VIDEO)

"Ignore conventional wisdom." - Anthony Robbins

From time to time I hear various 'mantras', 'idioms', whatever you want to call them, that relate to the markets, and trading.

As time passes, and I gain experience, I'm finding that many of them, are just flat out wrong, and turn out to be market 'myths'. I discuss that, in the following vlog entry ...

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



There will be no blog TV show tomorrow, as I have a memorial viewing and funeral that I will be attending from 4:00 pm to 7:00 pm.

* * *

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, April 15, 2009

Money Management: Commissions (VIDEO)

"Advertising is 85% confusion and 15% commission" - Fred Allen

To date in the money management series, we have explored the founding principles of money management. Risk Analysis, Reward Analysis, Trade Management, Drawdown, Accuracy Rates and Performance Analysis. We talked about Strategies and the need to find an edge to the market, or a bias, and to massage that bias. Those principles are the foundation. There is much of those principles can be expanded upon, and there can be further discussion and explanations. These explanations will assist you to see more of the underlying strengths of the base principles.

In the previous entry, I discussed how important it is to consider the danger of overtrading, and how it relates to your account size with a given time period. In the following video, I discuss the enemy of the low funded trader and investor.

Commissions.

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



* * *

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, April 13, 2009

Experts: They Aggrivate, Advocate but also Educate (PODCAST)

"Don't be buffaloed by experts and elites. Experts often possess more data than judgment. Elites can become so inbred that they produce haemophiliacs who bleed to death as soon as they are nicked by the real world." - Colin Powell

I get these emails all of the time: “What do you think of so and so? He says that we’ll see such and such

I’ll tell you what I think. I’m more interested in what terms that pundit uses and what facts he does and does not mention, than the conclusion that he’s arrived at. I discuss this, in the following podcast ...

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



A couple of corrections: When I say: "Don't develop a bias", I mean: "Don't fall in love with your developed bias". When I said that the newest "hole" is trillions of light years across, I meant a billion light years across.

I will also say that as an 'economist who puts his money where his mouth is', my decisions and bias usually have about a three month, to 1 year time frame.

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, April 11, 2009

Week in Review: Prudence and Chart Reading (PODCAST)

"Wisely, and slow. They stumble that run fast." - Romeo and Juliet, Act II, Scene III - William Shakespeare


Welcome to the Week in Review ...

We talk about economic prudence, the stock market rally on Thursday, and understanding what reading charts is really all about ...

(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.

Here's that three month chart I was looking at for the DOW Jones Futures during the podcast where I was talking about chart reading, YMM9 ...

(Click to Enlarge)

I honestly believe that I'm back to my usual schedule. So we'll see everyone on Monday! I may be a little late into the Ventrilo server (Probably about 12:30 pm EST)

* * *

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, April 10, 2009

Money Management: Overtrading (VIDEO)

"He who is prudent and lies in wait for an enemy who is not, will be victorious" - Sun Tzu, The Art of War

To date in the money management series, we have explored the founding principles of money management. Risk Analysis, Reward Analysis, Trade Management, Drawdown, Accuracy Rates and Performance Analysis. We talked about Strategies and the need to find an edge to the market, or a bias, and to massage that bias. Those principles are the foundation.

There is much of those principles can be expanded upon, and there can be further discussion and explanations. These explanations will assist you to see more of the underlying strengths of the base principles. In the following vlog, I discuss how to determine when you are over-trading. And how over-trading relates. And how it relates. To what? Your account size. ...


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



Tomorrow is the "Week in Review" and believe it or not, I think I'm actually finally back to my regular schedule ...

* * *

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, April 8, 2009

Wednesday Recap: I'm a Freaking Broken Record (PODCAST)

"Constant repetition carries conviction." - Robert Collier


How's that for a title for a podcast?

"Listen to a broken record!"

Yeah, that has to be about as appealing as listening to nails on a chalkboard. But please, indulge me. Let me get this out. Then perhaps, we can move on to bigger and better things for our profit. Then, perhaps, I can deal with 'what is'.

And what "is" is sheer stupidity. I just have to learn to deal with 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 mean ... seriously ?? Short selling? Again? That's what we are focusing on during this mess? Short selling? Haven't we already been here?

I wouldn't care one way or another if the up-tick rule was reinstated. But please, for the love of God

QUIT CHANGING THE RULES !!!

* * *

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, April 6, 2009

Monday / Tuesday Recap: Pain and Trading (PODCAST)

"The trust of the innocent is the liar's most useful tool." - Steven King


I'm starting to learn how to hobble around.

Regardless, in the following podcast, I discuss the views of analysts regarding Bank writedowns, the new socialist administrations 'removing' of the board of directors of publicly held corporations, and how shall I approach 'investing' as a trading opportunity, when it comes to what may be a short term bottom ...

(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.

See, the nice thing about not being able to trust someone? When an industry such as 'investment analysts' have already proven that they are a pack of liars? Is that you never, ever have to depend upon them ... for reliable information.

If you want a nice break down of the Geithner "Plan" (I use that term loosely), I suggest taking a look at the Khan Academies breakdown of the plan, which can be found by clicking here ...

* * *

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.

Week in . . . . Review?

Sorry about the lack of a week in review folks.

This has been quite a weekend. A few of our friends threw my wife and I an anniversary party for our anniversary that is tomorrow (13 years)

And, then, there was a small medical emergency this weekend. I crushed (literally, I broke it at the knuckle) one of my toes. I still have the toe from the knuckle up, but the toe moves upwards, and then bends sideways where the knuckle was crushed. Ripped the nail straight off of it, and crushed it from the last knuckle up. So I'm learning how to hobble around the house.

How did I do that you say? How else? By doing something silly.

On Saturday (literally right before I was getting ready to record the week in review) the wife and I, well, we were being a happy couple of 13 years. Just chasing each other around the house, and being silly. She was teasing me, and I was chasing after her. I started running full speed after her, and I slammed my toe both into, and under a door, and the door crushed it.

I'll spare you any pictures. It ain't purty. Basically though, the only thing going through my mind? Is pain. I can laugh and smile about it. But god ... that was some pain. I started going into mild shock which has to be one of the worst feelings in the world. Dizzy. Cold. Hot. Nauseous. Faint. I haven't felt those effects since I broke my arm.

I'm writing this out Sunday night, and I'll have something up on the blog for tomorrow, Monday, barring any further small emergencies ...

Friday, April 3, 2009

Airelon's Holy Gospel Hour: Mark to Madness Accounting Methods (VIDEO)

"I'm not upset that you lied to me, I'm upset that from now on I can't believe you" - Friedrich Nietzsche

If you're not among those that have followed me for a while? From time to time, I'm known for a bit of an "tirade" of the lunacy of the world, which I call "Airelon's 'Holy' Gospel Hour"

Mark to "model" accounting? That's the big news of yesterday. We're going to get rid of that pesky 'mark to market' accounting method, and we're going to use a mark to "model" method?

ARE YOU KIDDING ME? What ?!?!

With contracts that are not standardized, how do we determine what is "distressed"? We're supposed to trust the morons that got us in this mess?

We're supposed to trust the same people that defend 'brilliant models' of "Credit Default Swaps", which have proven themselves to be nothing more than an insurance credit scam! It's not a metric measure of trust within the system. If you don't have the reserves to pay for the swap, then it's nothing more than a scam!

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



So now? Now? Now accounting methods become more akin to a Salvador Dali painting, than anything that we might refer to as, gee ... reality.

Your New Account Methods:


Now the G-20 meets, and I kid you not, the headline reads across CNN:

"G-20 Leaders Meet to Save the World"

Again, those are CNN's words, not mine.

So what do these "leaders" decide? Do they decide we need to get OTC CDO Derivatives on an exchange? Do they decide that credit default swaps need regulated like any other insurance contract?

Of course not! They decide to regulate ... "hedge funds"?

WHAT ??!!

* * *

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.

Thursday, April 2, 2009

Airelon's Investing and Trading Thoughts: April 2009 (Fight! Fight! Fight! Fight!) (VIDEO)

Challenge Project Accounts:

Investing Account Balance: $435.13
Stock / Futures Trading Balance: $1,411.12
Online Savings Balance: $33.93

Here it is. My "outlook" vlog entry for the month.

Near the beginning of every month, I have an "outlook" entry in which I discuss what I have my eye on for the upcoming month. So here are my thoughts, as they stand today ...

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



* * *

Challenge Project Accounts:

Investing Account Balance: $435.13
Stock / Futures Trading Balance: $1,411.12
Online Savings Balance: $33.93

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, April 1, 2009

Wednesday Recap Podcast: Scheduling, Economics and Bias (PODCAST)

"A schedule defends from chaos and whim. It is a net for catching days. It is a scaffolding on which a worker can stand and labor with both hands at sections of time." - Annie Dillard

Welcome to the Wednesday Recap Podcast.

I discuss the importance of having a good schedule, the action in the stock market since Monday, economics, bias and the Challenge Project ...

(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 always tell ones that a trader is an economist who puts his money where his mouth is.

If you missed them, here is Part 1, and Part 2, of the vlog entries where I discuss my educational background.

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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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