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Monday, October 11, 2010

Monday Challenge Project Summary: October 11th, 2010 (VIDEO)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $922.55
Trading "Sister" Balance: $2,094.63
Side-pocket Savings "Sister" Balance: $525.30

Total Challenge Project Funds: $3,542.48

The original video explanation of the Challenge Project that began with $500, is to be found here. The Challenge Project is basically a demonstration of a model that anyone could at least follow along with on a weekly basis. It is my attempt without cost, to help out the 'little guy' when it comes to investing and trading by providing an example, a 'model' as it were ... as run by myself as a professional trader with real money, in accounts that I own; following my own three sisters portfolio management system; albeit modified a bit to operate with low funds. From time to time, I provide snapshots of the broker statements.

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. We split up Rule No. 2, into weekly segments; or $25.00 a week. As I mentioned on August 10th, I am in the processing of liquidating my own personal accounts, and will soon be trading this 'Challenge Project', full time.

For this week, the $25.00 weekly deposit is being transferred to the Challenge Project TRADING Account.

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

Here are the new balances for each of the Challenge Project accounts ...

Challenge Project Balances After Rule No. 2 Deposit:

Goals for Each Account By the Time I Trade Challenge Project Full Time
  • Investing Account: More cash, will evaluate
  • Trading Account: $2,400.00
  • Savings Side-Pocket Account: $800.30
Investing Account Balance: $932.03
(YTD the account is +16.63% YTD Return is about +8.492% Continuing Yield is approximately +6.96% in cash dividends and additional shares of stock)
  • 6.2685 shares of KO (DRIP is on for 4.2685 shares)
  • 5.158 shares of JNJ (DRIP is on for 3.158 shares)
  • Cash: $233.45
-$ 1.00 of this cash I reserve for 'maneuvering' capital
-$ 6.88 of this cash I reserve to D.C.A. KO

-$17.00 of this cash I reserve to D.C.A. JNJ
-This leaves $208.57 cash available for a new purchase
  • Additional $131.00 available from slush fund, up to $1,053.55
Investing Account Balance Since Inception
(Can be Enlarged):

Stock / Futures Trading Balance: $2,119.63
( YTD cash contributions, equity and return up about 32.79 % )
  • 2% risk tolerance gives us $42.39 'at risk' levels
  • 3% risk tolerance gives us $63.58 'at risk' levels
  • Additional $131.00 available from drawdown / slush fund, to $2,250.63
Trading Account Balance Since Inception:
(Can Be Enlarged)

Savings Side-Pocket Balance: $525.30
(YTD cash equity up about 162.3 % Return on Capital is 0 %)
  • $131.00 for a Slush fund / Drawdown Kill Switch fund
  • $263.30 for a Base Savings
  • $131.00 for Emergency Savings
Savings Side-Pocket Account Balance Since Inception:
(Can Be Enlarged)

Total $500 Challenge Project Balance: $3,576.96

* * *

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 14 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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