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Monday, January 31, 2011

Monday Challenge Project Summary: January 31, 2011 (PODCAST and VIDEO)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,026.26
Trading "Sister" Balance: $2,244.36
Side-pocket Savings "Sister" Balance: $675.00

Total Challenge Project Funds:
$3,945.62

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 not being used, as Rule No. 2 has been exhausted for the month of January.

(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.

Here is the video version of the entry ...

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



Here is the blip.tv version of the video

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 Account Balance: $1,013.39
(YTD the account is -0.6821% YTD Return is about -3.057% )
  • 6.2685 shares of KO (DRIP is on for 4.2685 shares - Yield is +2.829 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.515 % )
  • 6 shares of GIS (DRIP is not on for any shares - Yield is +3.105 % )
  • Cash: $87.37
-$58.41 of this cash I reserve for 'maneuvering' capital ( 5.764 %)
-$ 5.00 of this cash I reserve to D.C.A. KO ( 0.4934 % )

-$26.00 of this cash I reserve to D.C.A. JNJ ( 2.566 % )
-$ 0.00 of this cash I reserve to D.C.A. GIS ( 0 % )

-This leaves -$ 3.04 cash available for a new purchase ( -0.3 % )
-This leaves $ 1.00 cash available for a second new purchase ( 0.09868 % )
  • Additional $168.75 (16.65%) available from slush fund, up to $1,182.14

Trading "Sister" Account: $2,244.36
( YTD cash equity up 1.126 % Return on Capital is 0 % )
  • 2% risk tolerance gives us $44.88 'at risk' levels
  • 3% risk tolerance gives us $67.33 'at risk' levels
  • Additional $168.75 available from draw-down / slush fund, to $2,413.11

Savings Side-Pocket Balance: $675.00
(YTD cash equity up about 8 % Return on Capital is 0 %)
  • $168.75 for a Slush fund / Draw-down Kill Switch fund
  • $337.50 for a Base Savings
  • $168.75 for Emergency Savings

Total $500 Challenge Project Balance: $3,932.75 (YTD cash equity up about 1.761 % Return on Capital is -0.8061 % )

* * *

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.

Airelon's Challenge Chronicles No. 9: And We're Back!

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



Ok, let's dive right into it.

Before we begin, let's remember from the last A.C.C., number 8, that we've already applied rule no. two for the month of February. We're going to discuss my thoughts on the state of equities overall, as well as the individual stocks held in the dividend investing 'sister' account, and then we'll discuss trading.

(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.

As follows is a summary of the "Challenge Chronicle" 'three sister' accounts as of this morning, and before the profit in Gold that I had this morning, as mentioned in the previous entry ...

Investing "Sister" Account: $1,397.62
(YTD the account is +0.7548% Return on Capital YTD is -3.479% )
  • 6.5958 shares of KO (DRIP is on for 4.5958 shares - Yield is +2.829 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.515 % )
  • 10 shares of GIS (DRIP is on for 10 shares - Yield is +3.105 % )
  • Cash: $326.71
-$166.00 of this cash I reserve for 'maneuvering' capital ( 11.88% )
-$ 37.00 of this cash I reserve to D.C.A. KO ( 2.647 % )

-$ 74.00 of this cash I reserve to D.C.A. JNJ ( 5.295 % )
-$ 24.96 of this cash I reserve to D.C.A. GIS ( 1.786 % )

-This leaves $22.75 cash available for a new purchase ( 1.628 % )
-This leaves $ 2.00 cash available for a second new purchase ( 0.1431 % )
  • Additional $225.00 available from slush fund, up to $1,622.62

Trading "Sister" Account
: $2,772.04
( YTD the account is +6.298% Return on Capital YTD is +0.5156% )
  • 2% risk tolerance gives us $55.44 'at risk' levels
  • 3% risk tolerance gives us $83.16 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $2,997.04

Savings Side-Pocket Balance: $900.01
(YTD cash equity up about 0.00 % Return on Capital is 0.001 %)
  • $225.00 for a Slush fund / Draw-down Kill Switch fund
  • $450.76 for a Base Savings
  • $225.00 for Emergency Savings
-$0.01 paid in interest for January for 0.10% compounding monthly

-$675.00 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: $5,069.67 (YTD Return on Capital -0.4966% )

And once again, here are the money management performance metrics as they exist before the profitable trade in Gold this morning ...


Here is the picture of the profitable trade that I had this morning by shorting Gold ...


* * *

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

Airelon's Challenge Chronicles 9 ... Sort of ...

Yet AGAIN, Podbean gave me a hard time. So I'm compiling the podcast into a video right now.

Let's just say on the trading route, I like the following for implied probability 'edges' toward trades (noting from my methodology series that this does not mean that I am taking these trades, but that this is the direction my eye is turned:)

Gold and Silver - Looking for shorts on rallies

Crude Oil - Looking for an initial pullback to short

Live Cattle - Looking for pullback to 112 to 112.35 region of support to go long

I'll post the longer entry when I get the video done and compiled, and uploaded to YouTube.

Edit: 9:48 AM - Already had a short in Gold, tweeted it live from the Facebook page. Will put up trade confirmation when I get the full A.C.C. 9 posted. I currently have no orders out there (Had an order to buy an ITM USO Put before the open, but had to cancel it as the CL began to move before I could grab an option)

* * *

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.

Thursday, January 27, 2011

This Isn't a Contest (TEXT and VIDEOS)

This entry is a re-post of a blog entry that I wrote at another site some time ago. I have edited somewhat so that it is current and makes sense for today's date ..

* * *

I discovered years ago, that it was possible to absolutely love one's work, and simultaneously hate one's industry.

I've often related the story. From 1996 to 1998, I worked for a one of the largest computer consulting corporation at the time. It has since went the way of the dinosaur. I try to remind myself of that fact from time to time. Regardless, I've been rather public about that time period in my life. I had a great job. And I was miserable.

I loved my work at that corporation. I'm very much a “numbers” and metrics guy. As much as I admire the nobility that is working with one's own hands? Although I admire those with grease on their fingers, and dust on their face? That's just 'not me', and I'm not sure if it ever will 'be me'. As well, I have an affection for technology. I'm also very much a “people” person, and the “peace maker” of a group. I love the administration of anything technological. So my job was a perfect fit. Because I was the point of contact, between high level General Motors executives and my consulting corporation; whenever the GM executives experienced problems on the network that we had built for them. Since GM had decided upon Novell for their network software, the problems were a'plenty. At the time, Mr. Smith was the CEO of GM. I remember sitting in Rick Wagoners office when he was the head of North American operations. Actually, Rick was a very nice guy to interact with on a professional basis. I don't say that to brag. I say that to stress the point, that I loved my work. And if I may be so bold, I was very good at my job. As well, the Renaissance Center in Detroit was a beautiful environment in which to work. The job itself? The people? The nuts and bolts of what I did? I loved it.

Unfortunately, I had to deal with the middle management of my employers. All of whom, were smidiots. "Pointy haired Dilbert Bosses". Whatever you want to call them. When it came to managing people ... they were backwards looking, curve-fitting … smidiots. They felt that performance was a “who can do better, and 'look' better” contest. I kid you not, I remember watching executives for some of the largest corporations in the world, pull administrators off of their job. Why? Because they wanted their two offices measured out with a tape measure. The reason? To make sure the point of contact for the other corporation did not have any more square footage than they did. I saw that sort of behavior for long enough? I quit. I had discovered that it is possible to love one's work, and detest one's industry.

I discovered once I started trading for myself that the same dichotomy is possible.

I love my current job. I love trading. I love the wheel and the deal of the bid and the ask. I love watching spreads, and observing time and sales. I love squeaking out of a losing trade with a wonderful bit of risk management. I love looking into seasonal data averages for commodities and reviewing the Commitment of Traders (CoT) report.

But I absolutely refuse to make a repeat of my mistakes of 1996 through 1998.

Because I've come to find out, that this industry attracts some of the worst sorts of individuals. The worst sort of crooks, as well as the worst sort of proud, arrogant, haughty people. Most of them blow smoke at you, and they're little more than a snake oil salesman. Some of them are profitable. But some of these folks? They seem to have gotten it in their head? That the point of life is to have larger returns than everyone else.

Seriously? Are we the minority that was taught you do not under any circumstances brag about your accomplishments to others who are attempting the same thing? Are we the minority that was raised with these values? Aren't we all trying to find the same thing? A peaceful life, for the brief time we're here?

Seriously? Trading is more akin to golf. You're working to improve your own score. Your account capital. No one elses score. Your score. Your account capital. Sean O'Brien had a tweet some time ago that went something along the lines of unfollowing anyone on Twitter who, and I quote

Unfollow Friday any punk *)#* rookie posting stratospheric daily/weekly % returns..... I care why?"

Amen!

Listen. You trade your account well? Awesome. Fantastic. I'm happy that you're doing well. My concern ends there. I'm not trading to be in competition with others. I'm not trading to prove I'm a better trader than anyone else. I'm trading, so that I can live the life I want to live.

Now I also have established a rather 'public' internet presence. I, and others have been accused of 'spamming' our 'product'. Listen. I don't need to do this. I can go back to trading my accounts, and delve back into the realms of obscurity. I do not post pictures and videos of my vacation on my daily blog to brag. I'm trying to encourage folks. In probably the worst recession that most people alive today have ever experienced? I'm trying to encourage people. Is that such a bad thing? The point isn't to sit in front of monitors, and beat everyone else's returns. I trade, so that I can turn the monitors off, go out, and try to find some peace and happiness in this world of ours for the brief amount of time that I am here. I trade, so I can go spend some time in an art museum, or visit my friends in Mexico, Prague, or Hawaii. I don't post my pictures of my vacations because I'm out to brag. I'm happy that I've found some small measure of peace, and I want to encourage others that they can find some peace. If you want to travel to Paris or Hong Kong, or Hawaii or the Caribbean? You can do that. It's possible to live according to the level of freedom that you wish to enjoy. I learned a long time ago ... when you want to take a day off? Take a day off.



The wife and I walking through the square of Tequisquiapan, Queretaro, Mexico ...



The blip.tv version of that last video ...

I do what I wish to do, when I wish to do it. But I want other people to enjoy that same sort of freedom. Otherwise, I wouldn't have this public presence. I want to help the "Cameron Fry's" of the world. And I'm sorry if that means that from time to time, I'll tweet about an update.

Because life moves pretty fast. If you don't stop and look around once in a while? You could miss it.

Wednesday, January 26, 2011

Finish Your Check

This entry is a re-post of a blog entry that I wrote at another site some time ago. I have edited somewhat so that it is current and makes sense for today's date ...

* * *

I love hockey. I bought my first Koho hockey stick when I was about eight years old at a Kmart, along with a plastic puck. I didn't have a pair of skates. I'd either play on the street in my shoes (this is back during the times of roller-skates. There were no roller-blades), or in the winter, I'd wait for the street to ice over. And then I'd run and slide on my shoes, practicing my puck handling. The neighbor kids and I would jury-rig together pieces of wood and our sleds, to act as goals. I love those memories.

Now when I mention my love of the game in some circles? I often hear ones voice the belief that ... hockey is a game that is violent by it's very nature.

Nonsense. Players are violent. Games are not violent. If you don't believe me, you should play golf with my older brother when he's having a bad day.

I've played hockey for years. In fact, I have a good group of guys that enjoying playing the game from time to time. I wouldn't think twice or hesitate for a moment to jump in the rink with them. Why? Because they don't play and act like idiots. I know them, and trust them. They know that you don't have to slam into a guy, lifting up your feet at 400 miles an hour to check him into the boards. There is no reason to act in an insane manner. We have fun. But make no mistake. We also compete, and play hard. But we understand the difference between a good 'check' which accomplishes it's purpose ... and checking into someone like you want to take their head off. Because it's funny that when you come into the rink with a lot of emotion and anger? It actually becomes more difficult to finish your checks properly.

In fact, there is a funny story there ...

Usually, our group of friends who play? Well, for the sake of clarity in this story, we'll call them “The Guys”. Well, the thought is to divide up teams and play one another every few weeks. The teams differ each week. There are enough of “The Guys” to do this. Well … it seems another group of hockey 'players' (through a friend of a friend) heard about "The Guys" games, and wanted to join and play. The Guys thought this to be a good idea. It'd provide the opportunity to hone some line-change skills, and play a different group, with a different set of skills. So this second group that comes along? We'll call them “The Look-Goods”.

The Look-Goods show up. And are they ever. They have the best CCM Vector U skates. They have the stretch mesh undershirts with regulation, CCM hockey jerseys. I think one of their jerseys was even signed by a player.

So “The Guys” stand around ... waiting for the "Look Goods" to “dress up”. And of course, the trash-talking begins on the part of the Look Goods. This isn't a little bit of friendly ribbing. Of course not. They have to cross the line. Fine. Whatever. Finally, the game starts. And as was figured, the hard checks begin. Well, I should clarify. They were attempting hard checks. Because they never could seem to finish their checks. One of the “Look Goods” would come in flying at a million miles an hour, only to find a face full of plastic as one of The Guys turned in time to avoid him. Which of course, only increased the trash-talking on the part of the “Look Goods”.

The Guys never really sunk to that level. There were new opportunities to try different lines, and line-changes. There were opportunities to try different forms of defense. Boy oh boy where their opportunities. If memory serves, The Guys won the game, something like 7 to 2.

The only bit of what some might call trash talking on the part of The Guys? Was my brother-in-law as the game broke up. He skated over to another one of The Guys and just quietly said …

Yeah … that was a clinic ...

We sort of laughed. But we wouldn't talk in that manner to the “Look Goods”. We were all taught that it was poor sportsmanship to resort to that sort of conduct.

It's funny how you find, very much the same dichotomy of mindsets in this industry. You have those who are quietly content to go about their business. Some try to help other traders hone their skills, looking work hard for the bottom line: profitability. They are confident in their skills, and in their market calls.

The proof of their class? Is that they don't need to act in a haughty manner toward one another. They look to learn from one another. Of course, there may be a bit of friendly ribbing thrown in for good measure. In short, they're skilled players, who conduct themselves as adults. I'd compare them to a Hank Zetterburg or Nick Lidstrom.

Of course ... in this business and industry, you also have the “Look Good” crowd. There are other traders want to step into the rink and talk trash. We're not talking about friendly ribbing over a bad trade. I can't tell you the number of times I've seen some supposed hot-shot trader call out other traders with such juvenile lines as “Oh he's probably just some idiot, go against his picks“, or something as equally as childish. Usually they are “look goods” who can't see past their own skill set to see what they can learn from other traders. Perhaps they have enjoyed some success in the past. Because of that? Because they have the 'latest pads and equipment' as it were? Because what they have seems flashy and catchy? They seem to think they are the next Hank Zetterberg. They're not. In short, they are poor sports.

And they never follow through. They're usually too busy "pumping" and selling their systems that I wonder how they have time to do anything else ...

Tuesday, January 25, 2011

Johnson & Johnson (JNJ) Earnings ...

Johnson & Johnson (JNJ) just blew earnings expectations.

How concerned am I? Well ... I tell you, I'm still going to be leaving the home today here in Mexico, and take advantage of the vacation I'm enjoying. But I'm still going to review the data later today, the conference call, and going through some strategies; as I already believe that this will present an interesting opportunity.

I will discuss more later today or tomorrow in an entry.

Don't forget the other text entry today ... "The Market is the Market"

* * *

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.

The Market … is the Market

This entry is a re-post of a blog entry that I wrote at another site some time ago. I have edited somewhat so that it is current and makes sense for today's date. Also, do not forget there is another entry today regarding "Johnson & Johnson (JNJ) Earnings" ..

* * *

Rather 'zen' like statement eh?

But I think too many traders, and especially those who are attracted to the markets because of preconceived, emotional, economic biases ... forget that simple fact. Especially with comments and concerns regarding the U.S. Dollar. For the last two to three years, everyone and their brother has a thought regarding the U.S. Dollar.

To some extent, we should care about the U.S. Dollar and it's direction. We should have thoughts, and understand it's movements. We should care, because it's a market. The market, is how we work. But too many people want to include “the future of world peace” and associated drama into the U.S. Dollars price movements.

Have you ever been in a work environment, say … an office, where someone wants to include their personal life and drama, into the work that everyone performs? I remember about 14 years ago, I worked at a corporation, and the drama in the office, was “the boss” having sex with “the coworker”. Of course, then the backbiting began. Of course, "the boss" is friends with another co-worker. And that second co-workers sees "love blossoming". Of course, the third co-worker just got a crap load of work piled onto their plate, so then the accusations of “favoritism” began. The accusations of unfair criticism of the whistle-blowers. It was this big huge drama. And none of it had anything to do with our work at hand.

As traders, all we have to be concerned with ... is the work at hand. Which is price movement. That's the work at hand. Add just a touch of leverage to the equation, say, even 3 to 1, and it doesn't matter what is happening. That's just simple math. If you're trading profitably with reasonable, 3 to 1 leverage, and you're earning U.S. Dollars profitably? Then in the end, it doesn't matter that the U.S. Dollar is losing value. Anything else is politics. And over the years I've seen many traders ruined because they wanted to add their political bias into their trading. I saw a very recent example of this as a matter of fact, with someone who was otherwise ... a very intelligent trader.

Or perhaps traders even develop an emotional attachment to their “home” currency.

Of course, some thoughts and emotions are only natural. An American trader looks at the U.S. Dollar sinking and thinks "Awww man, the home team is down to the 15 yard line!" . And I don't care who you are, if you are an American, and you're a trader? That small emotional spark is there. I always tell traders: Look for the best in a situation, and always look at the other side of the trade.

For example. I'm a Michigan guy. Yeah ... that means the University of Michigan. I know we have college football fans amongst us. Now very soon, we'll see U of M face off with Ohio State. This must be one of the most classic rivalries in collegiate football. Am I rooting for the U of M?

Well, the wife and I were enjoying a beer and some chicken wings with very close friends of ours last night, at a local restaurant. Aaron. Just a great guy. Well Aaron is more of a Michigan fan than I am. And he said:

"You know Dan? I hope Michigan gets creamed. I hope it's a 30 point slaughtering. Then, maybe ... we can get the changes implemented in coaching that we know needs to happen."

That's the thought process of a good trader. Yes, there is the 'downside' emotional reaction to the "home team" being down.. But I tell traders to always look at the other side of the coin. Look at "Uncovered Interest Parity Theory", and how sovereign funds can take advantage of that fact, to buy into the U.S. Dollar heavily at the current time. Look at the mathematics of wealth destruction and how the carry trade will actually result in the U.S. Dollar Index ... eventually ... soaring to new highs during the unwind. Look at all of the data. Not just what people want to throw in your face, while they try to twist you to the bias in their 'book'. Because when you look at all of the data? It's funny how that helps negate your natural emotional reaction, and helps you to trade better for your book.

It was funny. About a year ago, I remember someone looking at me, and tried to invoke some sort of emotional response out of me. I knew what they were doing. They looked me dead in the eye with the fiery voice of righteous indignation and with an accusatory tone asked:

"So what you're telling me is ... you don't care. You just don't care about any of it!!"

The funny thing there? Was that they expected me to take offense.

I simply congratulated them, that they finally understood my point.

The markets don't care what your political bias is. They don't care about your economic bias. They don't care where you live, and what your home countries currency is, or that you don't like another nations policies. They don't care that you think Sarah Palin is misunderstood, or hot, or stupid. They don't care that you hate Keynesian economics. They don't care that you think we should be driving electric cars, or H3's. They don't care that you think the gold standard is the panacea for all mankind. The market … doesn't ... care. It's not the place for drama.

Because the market … is the market.

Monday, January 24, 2011

Monday Challenge Project Summary: January 24, 2011

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,032.66
Trading "Sister" Balance: $2,244.36
Side-pocket Savings "Sister" Balance: $650.00

Total Challenge Project Funds:
$3,927.02

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 SAVING SIDE-POCKET DRAWDOWN Account.

Savings Side-Pocket Drawdown Account:
As I mentioned a few weeks ago, my goal was to get the cash that is held at the brokerage account, for the 'savings side-pocket sister' account up to $675.00. We have now reached that level.

So, from this time forward, all funds transferred to the savings side-pocket / drawdown sister' account will be sent to the banking institution to earn interest; although the 'sister' itself will still be treated as one account, not two ... as the dividend investing 'sister' account is currently.

I will do this at least until this entire savings drawdown 'sister' account reads $2,750.00

Dividend Investing Account:
Ok, so I went ahead and added General Mills (GIS) to the dividend investing 'sister' account. As you can see from the balances below, this depletes all of the cash that was reserved for a new purchase (and then some). That category is showing a slightly negative balance, but that's not something that one application of rule no. two can't fix, so there's no cause for concern there.

Obviously, we'll be applying rule no. two towards the dividend investing 'sister' account in the near future. To work towards the goals we've been discussing lately (namely, building up our 'maneuvering capital') when an application of rule no. two is made towards the dividend investing 'sister' in the future, approximately 85% of said deposits will be applied to that category of 'maneuvering capital'. The remainder will be split towards the other categories.

This is all in an effort to a) attain the goals outlined in the "Challenge Project Strategy Outline" entry and b) attain those goals in a manner where we can still take advantage of opportunities in the market, control risk as well as allow for future growth.

Trading Sister:
As I mentioned in last weeks "Airelon's Challenge Chronicles", I have to review how I am going to approach the concept of "Opus I" (currently running), "Opus II" and "Opus III" in regards to "Airelon's Challenge Chronicles". Because although we are not looking at trading this account currently, I do plan on focusing on the trading 'sister' account towards the end of this year so that it can come to be in a position where it will be the primary 'thrust' of the Challenge Project ...

It's all a chess game ...


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 Account Balance: $1,026.26
(YTD the account is +0.5792% YTD Return is about -1.826% )
  • 6.2685 shares of KO (DRIP is on for 4.2685 shares - Yield is +2.802% )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.367% )
  • 6 shares of GIS (DRIP is not on for any shares - Yield is +2.975% )
  • Cash: $87.37
-$58.41 of this cash I reserve for 'maneuvering' capital ( 5.692 %)
-$ 5.00 of this cash I reserve to D.C.A. KO ( 0.4872 % )

-$26.00 of this cash I reserve to D.C.A. JNJ ( 2.533 % )
-$ 0.00 of this cash I reserve to D.C.A. GIS ( 0 % )

-This leaves -$ 3.04 cash available for a new purchase ( -0.2962 % )
-This leaves $ 1.00 cash available for a second new purchase ( 0.9744 % )
  • Additional $168.75 ( 16.44%) available from slush fund, up to $1,195.01

Trading "Sister" Account: $2,244.36
( YTD cash equity up 1.126 % Return on Capital is 0 % )
  • 2% risk tolerance gives us $44.88 'at risk' levels
  • 3% risk tolerance gives us $67.33 'at risk' levels
  • Additional $168.75 available from draw-down / slush fund, to $2,413.11

Savings Side-Pocket Balance: $675.00
(YTD cash equity up about 8 % Return on Capital is 0 %)
  • $168.75 for a Slush fund / Draw-down Kill Switch fund
  • $337.50 for a Base Savings
  • $168.75 for Emergency Savings

Total $500 Challenge Project Balance: $3,945.62 (YTD cash equity up about 2.094 % Return on Capital is -0.4815 % )

* * *

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, January 23, 2011

No Airelon's Challenge Chronicles This Week ...

There will be no thoughts for A.C.C. this week. I should have some thoughts together sometime next weekend, at least by Monday morning.

There will however, be a "Challenge Project" entry tomorrow.

Saturday, January 22, 2011

Friday, January 21, 2011

Market Geeks are Chic ...

This entry is a re-post of a blog entry that I wrote at another site some time ago. I have edited somewhat so that it is current and makes sense for today's date ..

* * *

How in the name of all that's holy, could any red-blooded human male not swoon whenever they saw Lisa Lobe, the original 'queen' of geek chic? Or for that matter, any "geek chic" female lovely. Ribbon chokers. Tight shirts and buffed bodies. Horn rimmed glasses and the blessing upon all of mankind that was the good ol' baby doll dresses. Am I revealing the fact that my 20's were spent in the 1990's? Perhaps.

And for the women among us? Please don't sit there and tell me that you don't find Adrien Brody attractive. I'm married, and I've had to sit and listen to my wife try to explain that one to me on more than one occasion. But from the time of Elvis Costello and Lisa Loebe to Stephanie Pakrul and Adrien Brody? Geeks, have become chic.

A geek has an environment, or an ambiance that they exude. They may do this through their style of dress, as with the beautiful Lisa Loebe? Or perhaps by surrounding themselves with technology, as does Stephanie Pakrul. But “Geek Chic” stars such as Adrien Brody, Lisa Loebe and Stephanie Pakrul are also innovative and profitable.

Market geeks are no different. And the chic of 'market geeks' has definitely landed as a 'scene' in the last five years. It was a gradual road we took to chicdom. This was not the state of affairs when I began trading. (Que Grandpa Simpson voice) We weren't market geeks. We were market nerds. We received our charts in the mail every week. We then had to draw each days action as it occurred with pencil or pen. The only scalpers were the guys in the open out-cry pits. The rest of us were swing traders by necessity. There were no 'computer charts'. Then came out the protracters and rulers for drawing in our support and resistance. The calculators were always close at hand, for computing the formula's for our favorite technical tools.

Our move to 'chicdom' began with Internet Brokerage platforms. I still remember seeing the first chart plotted on my Pentium I computer. The platforms offered by brokers began to improve. And as those brokerage platforms improved? We realized we needed more 'real estate' for our monitors. At first we tried to do this with large, twenty one inch CRT monitors.

Still too nerdy.

Enter the glory that is multiple flat screen monitors! Oh how chic!

But with this overload of market prints, we began to realize the danger of our toys. New traders still need to learn that lesson to this day. The need to focus past the 'technological chicdom' we surround ourselves with, and recognize that there is a 'danger'. I call it “Tick Fever”. The need to watch every print of the market, while the market leads you around by the nose. Every tick and every move of the market becomes more of an attractive proposition than actually being profitable in the markets. Yeup .... tick fever.

Having more monitors to engage in tick fever will not make you profitable. It is important to recognize that technology can enable this very dangerous habit.

Once we tore ourselves away, and realized the danger of 'tick fever', we found balance. We would take time away from tradng, and enjoy our lives and the freedom that trading offers to us. We still would have the occasional need to monitor the market; while running errands throughout our days.

Enter the glory that is mobile trading! " Monitoring the monitors'" of the markets from our Apple iPhones and Evo's.

Very chic.

So admit it. We are 'Market Geeks'. We love to pour over data, and fine exact details. We care, in that as disciplined as we try to remain, we do become rather emotional about our economic thoughts and biases. And now ... we enjoy exuding a certain ambiance about ourselves, with all of our neat technological toys.

Market Geeks of the world … unite!

Thursday, January 20, 2011

Actual Challenge Project Purchase: General Mills (GIS)

(Please note there are two blog entries today)

Well, the wife and I are in Tequisquiapan, Mexico at the moment. And as I mentioned on the last "A.C.C." podcast, I do not want to be involved in any trades while I am on vacation. But I have kept my eye on the markets, and I've been noticing that General Mills (GIS) has been channeling beautifully.

General Mills - One Hour Chart
Up to Yesterday



And then I woke up this morning at 8:20 am Queretaro time (9:20 am est), jumped on the bedroom computer to find that General Mills (GIS) was moving to break out of that channel.



And again, as I mentioned in the "A.C.C." podcast on Tuesday, I've been having my eye on this stock for the dividend investing 'sister' account for the Challenge Project.

So I went ahead and bought, for that said account, General Mills (GIS) with the break out of that channel this morning at $36.34. There was a bit of a gap up in the price, but with the next dividend, that will be somewhat negated. In addition, with the price history of that channel (thus I feel this is a breakout scenario, rather than a 'fade') ... I went ahead and used all of the cash reserved for a new purchase to buy this General Mills (GIS) position.

I'm going to get back now to my vacation with my wife, and my coffee ...


The view outside of my window to
the mountains of Queretaro ...


(Don't forget the second journal entry today, ... "Market Geeks Care" ... that is somewhat a continuation on yesterdays journal entry ... )

* * *

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.

Market Geeks ... Care ... (VIDEO LINK and VIDEO)

This entry is a re-post of a blog entry that I wrote at another site some time ago. I have edited somewhat so that it is current and makes sense for today's date.

Also, please note that there are two blog entries today ...


* * *

We all remember the famous William Shatner, Saturday Night Live “Get a Life” skit. The whole world finally had it's very public opportunity to laugh at Star Trek geeks. It was funny, because Star Trek geeks actually do care.

And it is amazing to the rest of us, that they truly care whether or not Captain Kirk was holding the phaser in his left hand or his right hand. But to a Star Trek geek? That's important business. They care. They find it incomprehensible that the rest of the world does not see the deeper meaning and impact on humanity. The sad result however, is that their skewed sense of priorities causes the rest of us to laugh, even years later when we think of that classic skit.

It's a trait common to all geeks. Caring deeply, and passionately about their subject. And yes, that includes market geeks. Face it. We care about things that other people generally could care less about, or find only mildly interesting. In fact, we care a little too much.

In over 14 years of trading, I have never seen the arguments over market prices, influences and theory as I have over the last 15 months. Hyper-inflationists fighting hyper-deflationists. Peter Schiff was right, or Peter Schiff was wrong. Gold is going to $2,000 an ounce, or Gold is going to $650 an ounce. Fiat currency is the devil. Fiat currency is misunderstood. The DOW is going to 11,000. The DOW is going to 2,000. Ben Bernake is doing a wonderful job. Ben Bernanke is going to plant chips in our heads and enslave us all. I've watched names hurled on both sides. I've watched both sides laugh at each other on mainstream television, and play the "Oh, you'll see" game. Even otherwise very intelligent people get drawn into a shouting match, over the "proper" price of a particular equity.

Again I ask you. Go down your street, and perform your own “Jay Walking” experiment.



Seriously. Do you truly think the average personal truly cares about the price of Gold? Do they know what a derivative is? Do you think they know what an exchange even is?

Seriously?

Market geeks can become emotional about market topics. There is an adamant beliefs about the market direction, and in the bias. Therein lay the problem. Emotional bias leads to a certain belief in a single trade. A trader then holds onto a single trade, because this single trade is going to prove the trader right, and others wrong. They quickly forget that it's not about the one trade, it's about the many trades. Risk management and draw-down principles are thrown right out the door and before you know it, the trader is praying to the God of margin calls and forced liquidations.

When it comes to my trading endeavors, I'm asked all the time where the market is going.

Quite frankly? I don't know, and I don't care.

As long as Gold goes down from here on out so I can prove I was right!

(ppsstt, that's a joke)

Wednesday, January 19, 2011

I'm a Market Geek ...

This entry is a re-post of a blog entry that I wrote at another site some time ago. I have edited somewhat so that it is current and makes sense for today's date ..

* * *

Those who have followed me for some time know that I can be a bit of a … well … a geek. For example, I study languages. Both their history, development, and the theory behind their construction. A rather obscure area of study to be sure. But trust me, it gets worse. For my love of language led me to the science of 'textual criticism'. Textual Criticism, for the uninitiated, is the study of attempting to discern what the original ancient documents (called the archtypes) contained through the study of the copies of those documents. This leads into studies regarding paleographical analysis and ….

Yeah, I tried to warn you that I could be a bit of a geek.

This tendency towards obscure areas of study and geekdom? Leads to a trait common to all geeks. Those of us geeks who study any particular area, say … like the capital markets? Come on. Just admit it. We're all market geeks. Regardless, the trait that common to all of us geeks, is the tendency towards being precise. Well, let me rephrase that. Those of us who are profitable geeks, have a tendency towards being precise. To be exact.

But we also tend towards simplicity and clarity. I think too many people confuse the profitable manner in which profitable traders use precise data. The real art in using data? Is in keeping the data both simple and clear.

When it comes to the markets, I try not to indulge in an overload of minutiae and deluge of information. Because there is simply too much information out there. And what is more, you do not need all of the information to be profitable. I can't tell you the number of times an investor or trader has asked me my thoughts regarding about a particular news item, or particular strategy … and I had no idea what they were talking about.

No, I don't try to predict the markets behavior through Elliot Wave.”

No, I don't trade Iron Condors, so I'm sorry, but I can't answer that question honestly.”

Yes, I am familiar with Elliot Wave, and I don't think it is wrong, it's just 'not me'.

No, I don't trade Forex.

Who did you say was going bankrupt?

No, Forex is not a scam, it's just something that I never developed with my own trading

A profitable trader doesn't have to know all the information that is out there. A profitable trader should not be expected to understand every single intricate market strategy known to man. Some of the best traders out there wouldn't know the difference between theta and gamma. Profitable traders concentrate their precise manner on simple, and clear data that will help them obtain their edge; with their particular methodology.

Yes. I'm a geek. A market geek.

But no, I've never attempted gamma scalping.

Tuesday, January 18, 2011

Airelon's Challenge Chronicles No. 8: Vacation, Management and Thoughts (PODCAST)

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

I discuss how I approach my actual book, when looking at spending a lot of time off, as well as some specific thoughts, for the capital markets overall ...

(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.

For the actual Challenge Project, I set an alert on General Mills (GIS) at $36.00 or above. It's just an alert, not a buy order. At that point, I'll want to be watching the market heavily to decide what to do.

Edit 10:52 AM - Heheh, set that alert at $36.00, and look at what happened to GIS afterwards. That is why you always allow the market to confirm your thoughts before moving ...

As follows is a summary of the "Challenge Chronicle" 'three sister' accounts as of this morning, and I am already considering February's Rule No. 2 deposits as being made ...

Investing "Sister" Account: $1,430.29
(YTD the account is +3.11% Return on Capital YTD is -0.4773% Continuing Yield is approximately +10.11% from cost basis to annual 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: $326.71
-$166.00 of this cash I reserve for 'maneuvering' capital ( 11.61% )
-$ 37.00 of this cash I reserve to D.C.A. KO ( 2.587% )

-$ 74.00 of this cash I reserve to D.C.A. JNJ ( 5.174% )
-$ 24.96 of this cash I reserve to D.C.A. GIS ( 1.745% )

-This leaves $22.75 cash available for a new purchase ( 1.591% )
-This leaves $ 2.00 cash available for a second new purchase ( 0.1398% )
  • Additional $225.00 ( 15.73% ) available from slush fund, up to $1,655.29

Trading "Sister" Account
: $2,772.04
( YTD the account is +6.297% Return on Capital YTD is +0.5156% )

- 1 Loss - Long Feb USO 37 Put from .97 to .91
  • 2% risk tolerance gives us $53.94 'at risk' levels
  • 3% risk tolerance gives us $80.91 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $2,922.04

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
  • $450.00 for a Base Savings
  • $225.00 for Emergency Savings
-$675.00 of this cash is in an interest bearing account
-$225.00 remains at the brokerage in an account for drawdown protection

Total Airelon's Challenge Chronicles Balance: $5,102.33 ( YTD the book is +4.236% Return on Capital YTD is +0.1445% )


And once again, here are the trading money management performance metrics as they exist at the moment ...


* * *

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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