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Monday, March 7, 2011

Airelon's Challenge Chronicles No. 14

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

I've already mentioned some of my trading thoughts in regards the markets on my facebook page. But as per usual, I want to expound further on those thoughts, in this, A.C.C. entry number 14 ...

(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.

Edit: 8:39 am - Thinking about a possible swing trade long with Pepsi (PEP), and have an alert set for above $63.90. Obviously, with an account the size of A.C.C., it'd be with a Pepsi (PEP) ... July 2011 60 Call. Just watching the open at this point ...

Edit: 9:35 am - PEP opened, moved lower, no trade yet. No trades on any of the other markets. Just monitoring.

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

Investing "Sister" Account: $1,478.99
( YTD the account is +6.621% Return on Capital YTD is -0.4625% )
  • 6.5958 shares of KO ( DRIP is on for 4.5958 shares - Yield is +2.883% )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.538% )
  • 10.08004 shares of GIS ( DRIP on for 10.08004 share - Yield is +3.047% )
  • Cash: $361.71
- $193.00 of this cash I reserve for 'maneuvering' capital ( 13.05 % )
- $ 38.00 of this cash I reserve to D.C.A. KO ( 2.569 % )

- $ 76.00 of this cash I reserve to D.C.A. JNJ ( 5.139 % )
- $ 26.96 of this cash I reserve to D.C.A. GIS ( 1.823
% )
- This leaves $23.75 cash available for a new purchase ( 1.606 % )
- This leaves $ 4.00 cash available for a second new purchase ( 0.2705 % )
  • Additional $225.00 ( 15.21 % ) available from slush fund, up to $1,703.99

Trading "Sister" Account
: $3,000.30
( YTD the account is +15.05% Return on Capital YTD is +6.287% )
  • 2% risk tolerance gives us $60.00 'at risk' levels
  • 3% risk tolerance gives us $90.00 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $3,225.30

Savings Side-Pocket Balance:
(YTD cash equity up about 0.1489 % Return on Capital is 0.1489 %)
  • $225.00 for a Slush fund / Draw-down Kill Switch fund
  • $451.34 for a Base Savings
  • $225.00 for Emergency Savings
-$0.67 paid in interest for February for 0.10% compounding monthly

-$676.34 of this cash is in an interest bearing account.
-$225.00 remains at the brokerage in an account for drawdown.

Total Airelon's Challenge Chronicles Balance: $5,379.63 ( YTD the account is +9.901% Return on Capital YTD is +3.555 % )

And once again, here are the money management performance metrics as they exist. There were no trades last week.

* * *

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

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