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Monday, December 27, 2010

Monday Challenge Project Summary: December 27th, 2010 - Portfolio Management and Wrapping up 2010

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,023.56
Trading "Sister" Balance: $2,219.36

Side-pocket Savings "Sister" Balance: $600.00

Total Challenge Project Funds:

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 have liquidated all of the other personal accounts that I've discussed on this blog for the last 4 years, and to emphasize the strength of these principles? I will demonstrating my success, again, this time it will be live, with the 'Challenge Project', full time.

For this week, the $25.00 weekly deposit is being transferred to the Challenge Project SIDE-POCKET SAVING Account.

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

Challenge Project Balances After Rule No. 2 Deposit:

Goals for Each Account By the Time I Trade Challenge Project Full Time
  • Investing Account: $580.00 in cash past equity positions
  • Trading Account: $2,600.00
  • Savings Side-Pocket Account: $900.00
Investing "Sister" Account: $1,021.23
( YTD the account is +27.79% YTD Return is about +12.341% Continuing Yield is approximately +6.96% in cash dividends and additional shares of stock )
  • 6.2979 shares of KO (DRIP is on for 4.2979 shares)
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares)
  • Cash: $285.41
-$38.41 of this cash I reserve for 'maneuvering' capital ( 3.761%)
-$ 3.00 of this cash I reserve to D.C.A. KO ( 0.2938% )

-$24.00 of this cash I reserve to D.C.A. JNJ ( 2.35% )
-This leaves $220.00 cash available for a 'first' new purchase ( 21.54% )
-This leaves $ 0.00 cash available for a 'second' new purchase ( 0.0% )
  • Additional $156.25 available from slush fund, up to $1,177.48
Investing Account Balance Year to Date
(Can be Enlarged)

Trading "Sister" Account: $2,219.36
( YTD cash contributions, equity and return up about 37.49 % )
  • 2% risk tolerance gives us $44.38 'at risk' levels
  • 3% risk tolerance gives us $66.58 'at risk' levels
  • Additional $156.25 available from draw-down / slush fund, to $2,375.61
Trading Account Balance Year to Date:
(Can Be Enlarged)

Savings Side-Pocket "Sister" Account: $625.00
( YTD cash equity up about 212.0 % Return on Capital is 0 % )
  • $156.25 for a Slush fund / Draw-down Kill Switch fund
  • $312.50 for a Base Savings
  • $156.25 for Emergency Savings
Savings Side-Pocket Account Balance Year to Date:
(Can Be Enlarged)

Total $500 Challenge Project Balance: $3,865.59

* * *

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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