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Tuesday, April 5, 2011

Airelon's Challenge Chronicles 15.2: A Little More in the Way of Specifics

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

Ok ... so in case you missed it, I did release an entry for A.C.C. this week. Of course, that entry discussed more of the 'why' it is that I do what I'm doing. It provided a lot in the way of 'back-story' I guess you could say.

But there wasn't a lot in the way of specific thoughts and actions. With this entry, I would like to take this opportunity to discuss more 'specific thoughts' in regards the A.C.C. 'book'.

I did state that A.C.C. would begin to use the application of rule no. two in a weekly manner, as does the actual Challenge Project. I've noticed that weekly applications of rule no. two allow for greater flexibility, and I discussed this in that entry of "Airelon's Challenge Chronicles".

For yesterday's Challenge Project summary, I detailed a new 'rule no. two rotation' ...

"We're going to concentrate now on the trading account as well as the savings 'side-pocket' account. I'll be looking for every 1 application of rule no. two towards the dividend investing 'sister' account, for 3 deposits to the savings-sidepocket 'sister', and 5 deposits towards the trading 'sister' account."

I will be using this rotation of rule no. two for "Airelon's Challenge Chronicles". As with the Challenge Project, this will allow me to accelerate the growth of the trading sister.

Readers of my previous newsletter would often see me set a goal in terms of equity for the trading 'sister' account, and upon attaining that 'goal', I would initiate another three sister's 'distribution' among the accounts with the trading profits.

A.C.C. is no different.

Thus, I would really like to get the A.C.C. trading 'sister' to about $4,100.00 and then initiate another redistribution among the three sisters. I will look at trading the trading account more actively again when the deposits from rule no. two are applied to the trading account, or in about four weeks.

You'll also notice that I split the categories on the savings side-pocket 'sister' account as I have done with the actual Challenge Project book. Thus, we'll be looking at how to 'expand' that portion of the book safely, as well as manage the various interests and categories for greater profitability.

As an aside, I discovered that on past A.C.C. entries, I had misplaced a decimal place in the wrong area, and thus some interest on the capital in the savings side-pocket was miscalculated by about 60 cents or so. I have corrected that error as of Sunday's entry.

So to sum up?

I'm just going to hang tight ... let rule no. two do it's thing ... bump up the capital for the savings side-pocket and the trading account, before trading again. As I have described in the past ... rule no. two with smaller accounts? It's like 'starter fluid' that will keep the engine moving until it 'catches', and trading can be permanent and active.

In this way ... I can accelerate towards the goal of $4,100.00 in the trading 'sister' account for the next 'redistribution'.

* * *

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 15 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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