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Monday, November 29, 2010

Airelon's Challenge Chronicles No. 2: Portfolio Decisions, Market Thoughts and Demo Account Setup (PODCAST and VIDEO)

(There are three entries today)

So what is "Airelon's Challenge Chronicles"? You can find a description by clicking here.

This is issue number two. I discuss my decisions in regards to the portfolio as a whole, some thoughts on the dividend investing route, the application of rule no. two as it would apply to "A.C.C.", a bit of portfolio management for such accounts, and also a number of trades that I'm personally looking at for this '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.

Alert setup on GIS if it breaks up and above $35.25. Alert setup on NYX if it breaks up and above $28.25. Alert on /ESZ0 if it breaks below 1179.25. Alert setup for /GCF1 if it breaks lower than 1360.40 for a trade in either mini-gold, or possibly GLD ITM (In the money) put options if the pricing is right in the active open. For the UUP ITM put options, I set an alert on /DXZ0 if it breaks below 80.32. On /OJF1, I set an alert to start watching for a breakdown below 150.50. For Cocoa? I set an alert if the market breaks above 2804 on /CCH1. I have no alerts setup on /LEG1 or /HEG1; as I'm just continuing to watch those markets.

Then, as the markets continues to evolve? My thoughts will continue to evolve and I may filter out markets, or focus in on specific markets; as I describe in my "Trading Methodology" series.

Here is a video that describes how to setup a "ThinkorSwim" demo account. It's changed just a bit, as I believe that video was created about two years ago. But it gives you an idea as to how to get started with demo trading ...

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

As follows is a summary of the "Challenge Chronicle" 'three sister' accounts as of this evening ...

Investing Account Balance: $1,306.66
(YTD the account is +0.0% YTD Return is about +0.0% 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: $583.45
-$100.00 of this cash I reserve for 'maneuvering' capital
-$ 62.00 of this cash I reserve to D.C.A. KO

-$ 71.45 of this cash I reserve to D.C.A. JNJ
-This leaves $350.00 cash available for a new purchase
  • Additional $225.00 available from slush fund, up to $1,531.66
Stock / Futures Trading Balance: $2,500.00
( YTD cash contributions, equity and return up about 0.00 % )
  • 2% risk tolerance gives us $50.00 'at risk' levels
  • 3% risk tolerance gives us $75.00 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $2,725.00

Savings Side-Pocket Balance: $900.00
(YTD cash equity up about 0.00 % Return on Capital is 0.00 %)
  • $225.00 for a Slush fund / Draw-down Kill Switch fund
  • $289.30 for a Base Savings
  • $225.00 for Emergency Savings

Total Airelon's Challenge Chronicles Balance: $4,706.66

* * *

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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