Search This Blog

Friday, December 31, 2010

Taxes and Recordkeeping

I stated earlier this month that I would have an entry, or actually, a 'reprint' from what I wrote at this blog on January 5, 2010, regarding taxes. I thought a post on taxes appropriate as a 're-post' here at the end of 2010 ...

* * *

That time of year has once again arrived ...

We begin to look ahead to tax time. Personally, I like to get my taxes done as soon as humanly possible.

Unfortunately, I'm a trader and investor.

Regardless of what any of us do for a living, we all have to wait for the tax documents to be shipped out by the responsible parties, which usually begins on January 31st. But investors and traders have a worse time of it than most folks. Because we have to wait for all of our brokers (and if you've been doing this for a while, there is this tendency to have quite a few brokers, which I do) to get all of our tax statements to us.

And it's not enough to have to wait for a myriad tax documents from different brokers. Usually the I.R.S. gives brokers longer to get tax documents out, than say, your regular corporate employer. In other words, if you work for an employer, then that employer must have your tax documents in the mail by January 31st. Not so with brokers. Your brokers are generally given more time. And even when they get you your tax documents? There's no telling that those are really your tax documents.

Because the number of times that I receive "corrections" to my statements weeks later? It's probably more often than I've received the actual, correct tax document the first time.

All of the above relates to a question I often receive on the part of new traders and new investors ...

"What do I need to 'do' for tax time?"

Biggest thing I can say after doing this for nearly 14 years?

Records. Keep excellent records.

If you keep up with it every single day? Then it's not hard to do. Again, I can't advise, as this is just a blog, and "I'm just a guy". But as a trader and investor of my own funds, this is what I've found I must keep track of ... every .... single ... day.
  • Date - There will be a portion of the taxes that you have to list every single trade and / or investment that you have made, and you'll thus need the date of each trade and / or investment.
  • Capital Description - Was it a trade? Was it an investment? Was it a dividend? I also write what I was trading or investing in this column. So I'll write things like "Div - JNJ" for Dividend, Johnson & Johnson. Or "Long 3 OJ" for going long in the OJ market.
  • Broker - I've just discovered that for my own record keeping? It's beneficial to keep track of which broker I made the transaction
  • Action - Was it a trade? Was it a trade buy to open? Was it a sell to close? Was it a sell to open (a short trade)? Was it a dividend received? I'll just write out things like "Buy - Trade to Open" or "Dividend" or "Exited investment".
  • DRIP (Dividend ReInvestment) Yes or No?
  • Shares or Number of Contracts: If I received a dividend, inside of a DRIP, I'll typically write something along the lines of "18.3845 shares @ $42.38495". In other words, this let's me know how many more shares I received, and at what price the DRIP was purchased. Trust me, when you finally sell off the investment for a profit? You need every single DRIP recorded for tax reasons. If it was a dividend, but there was no DRIP, I don't put anything in this column. If it was a futures contract, then I'll just write in the number of contracts, and the price I was filled, such as "3 at $13.51". If it was an equity trade, then I'll write the number of shares, and at what price I was filled, in other words, like "4000 shares at $18.50"
  • Amount: How much of the capital was spent? If I'm initiating a trade in futures? I write nothing in this column. If I'm closing a trade, then I write out the amount of the profit, or the loss in this column. If it's a dividend, then I write out how much the dividend (even if it was in a DRIP) the dividend was for all the shares.
  • Commission: I record the amount here, it it applies.
Just a simple spreadsheet for each transaction. It's not too hard.

The main thing is keeping up on the recordkeeping. I've discovered (the hard way of course), that if you let it get it away from you, then it can take a long time to catch up. Because the IRS demands that you list every single trade you make. It doesn't matter if you're a daytrader, and you have 2000 trades in a year. You must list 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 over 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.

Tuesday, December 28, 2010

Trading Psychology and Emotional Discipline (Series): Modesty, Humility, Ego, Self-Confidence and Spirituality (VIDEO)

"If a general is not courageous he will be unable to conquer doubts or to create great plans." - Sun Tzu, the Art of War

To continue in the endeavor of 'tweeking' my playlist videos, I wanted to insert a video into my playlist, or series of videos that discusses "Trading Psychology and Emotional Discipline". The link to the blip.tv RSS feed of this playlist can be found by clicking here.

There are actual personality traits that I believe assist with investing and trading efforts.

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



With modesty? You don't engage in strategies that you're not familiar with, and discuss topics with the idea that you are the one and only source of all information for that particular topic. Which means what when it comes to your investing and trading efforts? You don't style drift.

With humility? You're looking to help others. And in this economy? Isn't there a utilitarian benefit to the economy as a whole if those of us who are profitable and knowledgeable to assist others with no predatory 'bent'? And as I mentioned in the video? With a humble view of yourself? Perhaps over the long haul you can avoid the suicides that seem to plague this industry.

And it's not arrogant to warn others against someone I see as a snake-oil salesman. Heck, that's what I've been trying to help people avoid, and avoid the pain that I went through when I initially got involved in the markets.

* * *

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.

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:
$3,842.92

Introduction:
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

Sunday, December 26, 2010

Light Week ...

Well, there was obviously no "Week in Review" as we had a very light week in the capital markets with the national holidays. And the week ahead will also be light. But I am going to try to sneak out a "A.C.C." within the next week, another entry of trading psychology and emotional discipline and tomorrow, we'll have a Challenge Project entry.

Wednesday, December 22, 2010

A Look Back at a Look Forward ...

Yeah, yeah ... I said I wouldn't have a post for a few days.

So sue me.

This really won't take that long to put together. I was just reading over some of my previous work regarding my outlook for this last year of 2010

So here it is, via Scribbed. You can either look at and download the following link for... Airelon's Market Tactics No. 8 ... which in 2009 was my look ahead to 2010.

Or, you can read what follows below ...



Airelon's Market Tactics No. 8 on the Look ahead to 2010


* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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, December 21, 2010

Taking Some Time Off ...

I'll be taking some time off from the blog here; so don't be surprised if you don't see a post for a few days.

I am a man that believes in some compensation for what I do here, but I do not ask for money. The advertisement 'route' seemed to make sense. But, since I think it is unconscionable for religion and religious holidays to be mixed up with commercial businesses, I have removed the advertising on all blip.tv videos until after the holidays. So if you wanted to enjoy review some of those blip.tv videos in terms of the playlists? Enjoy them commercial free until after the holidays ...

Monday, December 20, 2010

Monday $500 Challenge Project Summary: December 20th, 2010

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,008.04
Trading "Sister" Balance: $2,219.36
Side-pocket Savings "Sister" Balance: $575.00
Total Challenge Project Funds:
$3,802.70

Introduction:
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 ...)



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: $580.00 in cash past equity positions
  • Trading Account: $2,600.00
  • Savings Side-Pocket Account: $900.00
Investing "Sister" Account: $1,023.56
(YTD the account is +28.08% YTD Return is about +12.59% 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)
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares)
  • Cash: $285.41
-$38.41 of this cash I reserve for 'maneuvering' capital ( 3.753%)
-$ 3.00 of this cash I reserve to D.C.A. KO ( 0.2931% )

-$24.00 of this cash I reserve to D.C.A. JNJ ( 2.345% )
-This leaves $220.00 cash available for a new purchase ( 21.49% )
  • Additional $150.00 available from slush fund, up to $1,173.56
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 $150.00 available from draw-down / slush fund, to $2,369.36
Trading Account Balance Year to Date:
(Can Be Enlarged)


Savings Side-Pocket "Sister" Account: $600.00
(YTD cash equity up about 199.6 %
Return on Capital is 0 %)
  • $150.00 for a Slush fund / Draw-down Kill Switch fund
  • $300.00 for a Base Savings
  • $150.00 for Emergency Savings
Savings Side-Pocket Account Balance Year to Date:
(Can Be Enlarged)



Total $500 Challenge Project Balance: $3,842.92

* * *

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

Airelon's Challenge Chronicles No. 5: Some Time Off - Broad Market Thoughts (PODCAST)

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

I discuss my overall thoughts on the current market overall as 2010 wraps up ...

(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.

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. I'll update as best I can on this blog throughout the week as that 'filtering' process takes place.

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

Investing "Sister" Account: $1,398.16
(YTD the account is +7.003% Return on Capital from Inception of A.C.C. is +2.681% Continuing Yield is approximately +10.11% in cash dividends and additional shares of stock)
  • 6.5958 shares of KO (DRIP is on for 4.5958 shares)
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares)
  • 10 shares of GIS (DRIP is on for 10 shares)
  • Cash: $276.71 (screwed up a previous balance by making the balance higher (Added rule no. two twice) This balance is correct)
-$127.00 of this cash I reserve for 'maneuvering' capital (9.083%)
-$ 35.00 of this cash I reserve to D.C.A. KO ( 2.503% )

-$ 72.00 of this cash I reserve to D.C.A. JNJ ( 5.15% )
-$ 21.96 of this cash I reserve to D.C.A. GIS ( 1.571% )

-This leaves $20.75 cash available for a new purchase ( 1.484% )
  • Additional $225.00 available from slush fund, up to $1,531.66

Trading "Sister" Account
: $2,609.82
( YTD the account is +4.393% Return on Capital from Inception of A.C.C. is +2.346% )
  • 2% risk tolerance gives us $52.19 'at risk' levels
  • 3% risk tolerance gives us $78.29 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $2,834.82

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: $4,907.98 (Return on Capital 2.002 %)

And once again, here are the money management performance metrics as they exist this evening ...



* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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, December 18, 2010

Week in Review Podcast: Live Interaction, Life and Oil Prices (PODCAST and VIDEO)

"I have a rendezvous with death ... and I to my pledged word am true ... I shall not fail, that rendezvous." - Alan Seeger

Welcome to the Week in Week in Review podcast!

Wow ... I've been through the wringer the week emotionally and psychologically. Literally, from death ... to life. I discuss this, and matters regarding oil inflation 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.

If you prefer the YouTube video version of the podcast, and I have not included a few charts on the video ...

(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 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.

Thursday, December 16, 2010

Portfolio Management Decisions ?

"There are always ... possibilities" - Mr. Spock

Well, Coca-Cola (KO) went ahead and popped above $65.00 a share as I thought it would. Some have asked me if I will now sell Coca-Cola (KO) as I did with McDonalds (MCD). Well, let me just say this ... McDonalds (MCD) was a great long, but a different set of circumstances. There are more things to do than simply "buy" or "sell" when it comes to investing.

Coca-Cola (KO)
Daily Chart


To date, I've been setting a little cash aside to dollar cost average more on the stocks held like Johnson & Johnson (JNJ) and Coca-Cola (KO) ... correct? Now add to that point, the fact that the dividend investing 'sister' account is a little short on cash from a maintenance standpoint.

It looks a little something like this from the last listing of the Challenge Project:

-$26.45 of this cash I reserve for 'maneuvering' capital ( 2.624 % )
-$13.00 of this cash I reserve to D.C.A. KO ( 1.29 % )

-$24.00 of this cash I reserve to D.C.A. JNJ ( 2.381 % )
-This leaves $220.00 cash available for a new purchase ( 21.82% )

And like this for "Airelon's Challenge Chronicles" ...

-$110.00 of this cash I reserve for 'maneuvering' capital (8.1%)
-$ 62.00 of this cash I reserve to D.C.A. KO ( 4.565% )

-$ 72.00 of this cash I reserve to D.C.A. JNJ ( 5.302% )
-$ 70.00 of this cash I reserve to D.C.A. GIS ( 5.154% )

-This leaves $10.75 cash available for a new purchase ( 0.7916% )

So ... what I'm thinking is this: If Coca-Cola (KO) maintains this break out above $65.00 (in other words, a headfake doesn't manifest itself), then I'll decrease the amount being held in reserve to dollar cost average Coca-Cola (KO). By how much will I reduce the reserve? We'll have to see when the time comes to make that decision. Where else will I then weight that cash for? Again, we'll have to see when the time comes to make that decision.

Portfolio management is a game of chess. Some liken it to poker. It's not just about 'buy or sell'. It's also how you 'stack your chips' as it were, or 'pre-position your pieces'.

* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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, December 15, 2010

Oh Look! May I have Another? Coca-Cola (KO) Dividend Pay Date ...

Yes, another dividend for today, December 15th, 2010. Today is the pay date for Coca-Cola (KO) stock. $0.44 a share. This obviously affects both the Challenge Project, as well as the account for "Airelon's Challenge Chronicles". Both will be recorded in the same way.

What a ride.

Seriously.

As I mentioned yesterday on the Facebook page, we saw a break lower in prices yesterday on the news of completion of the acquisition of Nigerian Bottling Company (NBC). For those who want to dump out of KO, I can understand due to the incredible appreciation. Myself? I'll hold it through any further acquisitions. $126 million is chump change, and KO already owns most of NBC (sixty something percent if memory serves me correctly). Coca-Cola (KO) is really just completing an acquisition more than announcing something out of left field. And with a thirty percent premium over it's current price? NBC shareholders are being treated more than fairly.

This is all especially sweet when you consider the fact that I feel I made a couple of mistakes with the initial purchase of Coca-Cola (KO). Doesn't matter with Dividend DRIP investing. What matters, is survivability. The main trick with investing, any investing ... is knowing fundamentals. Knowing about survivability. Which isn't really that difficult. A company worth billions, paying out a little over 100 million for a company they already own sixty-some-odd percent of?

I'm not really too worried.

Would I buy more of Coca-Cola (KO) right now?

No.

Am I enjoying the ride?

Yes.

I swear, the last few years? It's as if I'm playing in a money playground ...



* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that are displayed using the ThinkorSwim platform, and other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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, December 14, 2010

Johnson & Johnson (JNJ) Dividend Pay Date ...

Today, December 14th, 2010 is the pay date for Johnson & Johnson (JNJ) stock. $0.54 a share. This obviously affects both the Challenge Project, as well as the account for "Airelon's Challenge Chronicles".

Again, for the Challenge Project ... I have arranged for a partial DRIP. One brokerage has the shares paying the straight cash. The other brokerage has some of the shares enrolled in DRIP (Dividend ReInvestment Plan). Both "Airelon's Challenge Chronicles" and the Challenge Project will record the numbers in the same way.

Operating cash flow has been up for the year, as well as ... interestingly enough, financing cash flow. All in all ... I love this stock. It's provided some wonderful opportunities to get long in the last year ... when other dumb money was talking about JNJ going "bankrupt" (yes, if you can believe it, I actually heard that).

* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that are displayed using the ThinkorSwim platform, and other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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, December 13, 2010

Monday Challenge Project Summary and A.C.C. No. 4 (PODCAST)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,010.45
Trading "Sister" Balance: $2,194.36
Side-pocket Savings "Sister" Balance: $575.30

Total Challenge Project Funds:
$3,780.11

Introduction:
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 TRADING Account.

I will discuss my thoughts regarding the actual Challenge Project in the podcast below, but for now, here are the new balances for each of the actual 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: $580.00 in cash past equity positions
  • Trading Account: $2,600.00
  • Savings Side-Pocket Account: $900.00

Investing Account Balance:
$1,008.04

(YTD the account is +26.14% YTD Return is about +10.89% 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: $283.45
-$26.45 of this cash I reserve for 'maneuvering' capital ( 2.624 % )
-$13.00 of this cash I reserve to D.C.A. KO ( 1.29 % )

-$24.00 of this cash I reserve to D.C.A. JNJ ( 2.381 % )
-This leaves $220.00 cash available for a new purchase ( 21.82% )
  • Additional $143.00 available from slush fund, up to $1,151.04
Investing Account Balance Year to Date
(Can be Enlarged)




Stock / Futures Trading Balance
: $2,219.36
( YTD cash contributions, equity and return up about 39.04 % )
  • 2% risk tolerance gives us $44.38 'at risk' levels
  • 3% risk tolerance gives us $66.58 'at risk' levels
  • Additional $143.00 available from draw-down / slush fund, to $2,362.36
Trading Account Balance Year to Date:
(Can Be Enlarged)


Savings Side-Pocket Balance: $575.30
(YTD cash equity up about 187.2 % Return on Capital is 0 %)
  • $143.00 for a Slush fund / Draw-down Kill Switch fund
  • $289.30 for a Base Savings
  • $143.00 for Emergency Savings
Savings Side-Pocket Account Balance Year to Date:
(Can Be Enlarged)



Total $500 Challenge Project Balance: $3,802.70

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

In the following podcast, I begin to talk about the Challenge Project, and my thoughts there, and then move onto "Airelon's Challenge Chronicles". After which, I discuss performance for the year of 2010.

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



Click here to download this podcast.

As I said in that podcast ... I'm really always on the outlook for "coiling" pressure ...



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

Investing "Sister" Account: $1,358.04
(YTD the account is +3.932% Continuing Yield is approximately +10.11% 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)
  • 10 shares of GIS (DRIP is on for 10 shares)
  • Cash: $324.75
-$110.00 of this cash I reserve for 'maneuvering' capital (8.1%)
-$ 62.00 of this cash I reserve to D.C.A. KO ( 4.565% )

-$ 72.00 of this cash I reserve to D.C.A. JNJ ( 5.302% )
-$ 70.00 of this cash I reserve to D.C.A. GIS ( 5.154% )

-This leaves $10.75 cash available for a new purchase ( 0.7916% )
  • Additional $225.00 available from slush fund, up to $1,583.04

Trading "Sister" Account
: $2,607.82
( YTD cash contributions, equity and return up about 4.393 % )
  • 2% risk tolerance gives us $52.15 'at risk' levels
  • 3% risk tolerance gives us $78.23 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $2,832.82

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: $4,865.86 ( +1.126% in terms of return )

* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that are displayed using the ThinkorSwim platform, and other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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.

Sunday, December 12, 2010

A.C.C. No. Four ?

I'll try to have it out by tomorrow ...

Week in Review Podcast: Econo-Bears on the Stock Market and Inflation (PODCAST and VIDEO)

"Even though the stock market has rightly been called the triumph of the optimists, with bulls stomping bears over and over for one hundred years, stock market bears not only haven't gone away, but they generally have the most compelling arguments. Their points seem so [...] plausible, level-headed, empirical, and reasonable, while bulls come across as starry-eyed idealists" - Paul Kedrosky

Welcome to the Week in Week in Review podcast!

Some time ago, I discussed the fact that I have this little personality flaw. I like to 'poke the dog with the stick' as it were. Poke a friendly bit of fun with folks who have just silly economic arguments.

Lately? I think they've been having their revenge, and poking me with the stick to get me riled up. Not that I believe my economic thoughts are silly. But they know how to rile me up. How? Why? I discuss that in this "week in review" 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.

If you prefer the YouTube video version of the podcast, and I have included a few charts on the video ...

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



Here is the video that I discussed in the podcast that has to do with quantitative easing, and the bond market ....

(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 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.

Friday, December 10, 2010

Airelon's Challenge Chronicles 3.9: An Explanation

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

I have a few tools, which, believe it or not, I have yet to reveal. Even after nearly four years of blogging.

Some of these tools I've hinted at, and a few folks have come to know about them. One of them I developed from two or three other tools. I call it an "S Swing" Point. Since there are a handful of folks that are aware of this tool, I figure it would only be fair to freely disseminate the specifics of this tool in today's blog entry ...

(Reprinted from my own "Airelon's Market Tactics of November 16, 2009")


“The S Swing Point”
“The future is something which everyone reaches at the rate of sixty minutes an hour, whatever he does, whoever he is” - C. S. Lewis

As I have related many times, Larry Williams was the market educator who sort of “set my head on straight”. I always appreciated the fact that Larry always suggested we, his students, develop the ability to create our own technical tools. One way to do this? Is to take the bits and pieces of other technical tools and combine them with other ideas and theories.

I wish to now discuss what is probably one of my favorite tools. I call it a “S Swing Point”. I use it primarily as an entrance timing tool, or trigger, since I am a swing point, or “pivot” trader. So when I put into use, a “S Swing Point”, I'm using it as a pivot entrance. I wanted to talk about it's construction early on in the history of this newsletter, for my new subscribers.

Let's begin by talking theory. No, I'm not going to delve into mathematics too heavily. But let's just rationally and logically discuss what many of us are already aware of when it comes to trading, and market theory. We know that there are two aspects to a market, that all intelligent traders are concerned with. One is price. What price level can I obtain a particular security or derivative? From this, we have the basic concepts of support and resistance. The other aspect is that of time. What time will it be opportune to step in and buy a particular security and derivative?

There have been arguments for decades, as to which aspect of trading is more important. Time. Or Price? Back and forth. I personally am skewed towards the aspect of time.

But there are are many such arguments in this industry. Technical analysis versus fundamental analysis. Investing versus trading. I am the type of person who always looks for a “win win” scenario. As I explained last week with the “three sisters”, I am a trader. I'm also an investor. In other words, I don't trade exclusively. Nor do I invest exclusively. I see “trading versus investing” arguments as pointless. Why not do both, and recognize the strengths and weaknesses of each. The same is true with technical and fundamental analysis. I trade technically, and fundamentally. I look for “win win” scenarios.

So let's apply that to the argument of time versus price. What if we could develop a tool that looks for an area of price and time? This should in fact be the goal of every trader and investor.


One tool of Larry's that I've always enjoyed, is his 1.28 rule, which concerns itself with time. Let's talk about the 1.28 rule a bit, as it is the basis for my “S Swing Point”. At the same time, I hope to demonstrate this concept in action. That is, how to develop your own tools from the parts of other tools.

We all notice that the market swings between highs and lows. Pretty basic. The highest highs, and lowest lows of these market swings become known as “swing points” or “pivot points”. Myself, since I'm an old-school guy, I prefer the term “swing points”. At times, the market swings behave orderly. Let's take a look at December Corn [this is from 2009] for example on the Daily Chart as it appeared on Wednesday night …



Notice that the swing points come at seemingly equidistant points in time. Of course notice too, in price that at times, the market will hover near a support or resistance level, and hold. But support and resistance lines are never exact. It will pop a little bit below a support level, fool a bunch of traders with what is commonly referred to as a “squeeze” and then head higher. Neither do the swing points arrive in equidistant moments in time. The cycles are off, by just a small amount. The 1.28 rule attempts to quantify the “off” aspect of the timing of the
swing points.

Take for example the two low swing points on November the 2nd, and November the 6th on the following daily chart. Between these swing point lows, is a swing point high. Regardless, to find the next high using the 1.28 rule, take the number of days between the swing point lows, and multiply that number by 1.28. Thus, 4 * 1.28 = 5.12. You then count 5.12 days forward, from the swing point high on November the 4th.



And as we see this week [remembering this is a reprint from 2009], we got a reversal at the 1.28 rule that was most definitely 'tradeable'. In fact, if you note my Tweets last week [2009], as well as my free “Week in Review” podcast [2009], you'll note that this is a market that I just “creamed” (Sorry, couldn't resist).

But the 1.28 rule has it's drawbacks. It's not exact as it works best at causing you to look at a particular time period, but says nothing about price. And let's face it … even when considering the time aspect, the market simply cannot function off a basis of pure 1.28 swing points. Random news events arise, and the market enters periods of extreme volatility in which swing points, or pivot points are 'thrown to the wind' as it were.

I therefore decided to start reinforcing this concept of “time and price” with another tool I developed when one day, I was sort of fooling around with Fibonnaci Fans with one of my brokers platforms, from the swing points I was using for 1.28 construction. I began to notice that at certain times the 50% line of the Fibonnaci Fan that bisects the forward swing points would intersect with the 1.28 reversal day.


Simply bisect points b and c by 50%. These 50% bisections will point to a price level. And if you notice, this bisection will often point to a price level that is right past the support or resistance level.

This is why I tell people, that support and resistance are not an exact lines of price, simply because XYZ is at $10.00. This is why I refer to them 'zones' of support and resistance. If XYZ is at $10.00, it doesn't mean that the resistance is $10.00, and $10.01, that XYZ's resistance has been violated. In fact, over the years I noted thousands of examples that this bisection tool points to true areas of resistance or support. But the bisection tool is not to be used alone. Again, only when used in conjunction with the 1.28 rule.

I usually begin to use this tool after I have examined other filters. As I mentioned last week to better increase my edge I use as filters ...
  • Seasonality: Seasonal tendencies occur in the market, and I study both the strength, and dependability of annual, seasonal moves.
  • Larger Trend and Market Cycles
  • Commitment of Traders Report
So I apply this as one of my tools, in such situations. Thus, we arrive at the end result. An “'S' Swing Point”. I just got in the habit of calling it a “S” Swing point, as I developed it (my last name), and the fact that I begin using this entry tool when definite Seasonal dates approach a market that I am 'stalking' according to my bias, or edge filters.

* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, 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. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that are displayed using the ThinkorSwim platform, and other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. 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.

Search Investing and Trading Articles and Products