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Monday, February 28, 2011

Monday Challenge Project Summary: February 28, 2011: The Challenge Project, Security, Side Pockets and CD Ladders (VIDEO)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,077.39
Trading "Sister" Balance: $2,269.36
Side-pocket Savings "Sister" Balance: $675.00
Total Challenge Project Funds: $4,021.75

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, 2010 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 SAVINGS SIDE-POCKET Account.

(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 is the link to the news article that I mentioned in the video, and this is also why the amounts that I list below in each account? They are always off ... by just a little bit. Not enough so that the Challenge Project ends up being deceptive. But enough to protect my butt.

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: $1,074.50
(YTD the account is
+5.307 % YTD Return is about -1.454% )
  • 6.2685 shares of KO (DRIP is on for 4.2685 shares - Yield is +2.923 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.622 % )
  • 6 shares of GIS (DRIP is not on for any shares - Yield is +3.016 % )
  • Cash $137.37
-$95.37 of this cash I reserve for 'maneuvering' capital ( 8.876 %)
-$ 7.00 of this cash I reserve to D.C.A. KO ( 0.6515 % )

-$28.00 of this cash I reserve to D.C.A. JNJ ( 2.606 % )
-$ 3.00 of this cash I reserve to D.C.A. GIS ( 0.2792 % )

-This leaves $ 2.00 cash available for a new purchase ( 0.1861 % )
-This leaves $ 2.00 cash available for a second new purchase ( 0.1861 % )
  • Additional $175.00 ( 16.29 % ) available from slush fund, up to $1,249.50

Trading "Sister" Account: $2,269.36
( YTD cash equity up 2.253 % Return on Capital is 0 % )
  • 2% risk tolerance gives us $45.38 'at risk' levels
  • 3% risk tolerance gives us $68.08 'at risk' levels
  • Additional $175.00 available from draw-down / slush fund, to $2,444.36

Savings Side-Pocket Balance: $700.00
( YTD cash equity up about 12% Return on Capital is 0 % )
  • $175.00 for a Slush fund / Draw-down Kill Switch fund
  • $350.00 for a Base Savings
  • $175.00 for Emergency Savings
- As described in previous entries, all deposits past $675.00 will be towards an interest bearing account, although it separate accounts will still be treated as one 'sister' portion of the book.

-$25.00 of this cash is in an interest bearing account.
-$675.00 remains at the brokerage in an account for drawdown.



Total $500 Challenge Project Balance: $4,043.86 ( YTD the account is +4.636 % YTD Return is about -0.5156 % )

* * *

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. 13 (VIDEO)

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

I want to talk briefly on the concept of 'style-drifting' and 'optimizing, and then we jump right into a discussion of the dividend investing book, as well as trades.

You'll also note that this is a video on blip.tv. That's because I've all but given up on podbean. The timeout errors when trying to upload a simple 24 meg file, were ridiculous. I tried to upload this podcast for about 4 hours with no luck, and constant time outs.

So here it is ... A.C.C. No. 13, via blip.tv ...

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




Here is the link to that video

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

The Application of Rule No. Two for the month of March includes $10.00 to the DIVIDEND INVESTING Account, and $90.00 to the TRADING ACCOUNT.

Investing "Sister" Account:
$1,469.53

( YTD the account is +5.939% Return on Capital YTD is -0.178% )
  • 6.5958 shares of KO ( DRIP is on for 4.5958 shares - Yield is +2.923 % )
  • 5.1856 shares of JNJ ( DRIP is on for 3.1856 shares - Yield is +3.622 % )
  • 10.08004 shares of GIS ( DRIP on for 10.08004 share - Yield is +3.016 % )
  • Cash: $361.71
- $193.00 of this cash I reserve for 'maneuvering' capital ( 13.13 % )
- $ 38.00 of this cash I reserve to D.C.A. KO ( 2.586 % )

- $ 76.00 of this cash I reserve to D.C.A. JNJ ( 5.172 % )
- $ 26.96 of this cash I reserve to D.C.A. GIS (
1.835 % )
- This leaves $23.75 cash available for a new purchase ( 1.616 % )
- This leaves $ 4.00 cash available for a second new purchase ( 0.2722 % )
  • Additional $225.00 ( 15.31 % ) available from slush fund, up to $1,694.53


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:
$901.34
(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: $5,370.50 ( YTD the account is +9.715% Return on Capital YTD is +3.379% )


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

Saturday, February 26, 2011

Week in Review: The Excommunicated Jobless, Crude Oil and the Silver Bubble (VIDEO)

"Unemployment is of vital importance, particularly to the unemployed." - Sir Edward Heath

Welcome to the Week in Week in Review podcast!

Recovery? There's a recovery on? Is there? Isn't there? With Crude Oil at $100.00 a barrel?

I discuss this and more in this "Week in Review" ... as we 'go back to old school' ...

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



Here is the blip.tv version of this video.

By the way ... when I use the analogy of being "excommunicated" from the recovery ... I don't mean to imply from that analogy that the jobless have done something wrong, improper, 'wicked' or 'evil', as in the case of tax collectors in ancient Rome. It was simply the situation I see, rather than the cause for that situation.

* * *

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 ris

Wednesday, February 23, 2011

A.C.C. Update 12.5

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

So should I consider this an entry for "Airelon's Challenge Chronicles"? I guess so. I just thought I would throw up a text entry on my current thoughts in the markets ... 'things' overall. As always ... they're just my thoughts ... not yours ...

I've been concentrating on the dividend investing side of things lately, as followers of "A.C.C." know.

General Mills has been having a wonderful past few days.

General Mills (GIS)
Daily Chart

(Click to Enlarge)

Naturally, this is not what I see as a 'buy', even if I didn't already hold it in the A.C.C. accounts. 'A' move has already begun. But since I do already hold GIS ... then this is what I call "enjoy the move". Personally, I think current weakness that we're seeing in the grain markets (Wheat primarily, but also Soybeans and even a couple of down days in Corn) is clearing out the initial bearish sentiment from high grain costs to General Mills (GIS).

And although I don't own Abbott Labs (ABT), I have been discussing it lately, so I thought I would discuss that a bit. First of all, if you haven't seen McDonaldsCalling21's videos on ABT, and his hedging on the position, then I would highly recommend it.

Abbott Labs (ABT)
Daily Chart

(Click to Enlarge)


Myself? Although I don't own it, I still like the entrance that I mentioned on Sunday's entry. At the moment, we're holding on some good 'ema support' on the one hour chart. We need to break above $47.18 for the uptrend to continue, and a firm 'footing' underneath ABT.

Moving on to Johnson & Johnson (JNJ) ... we broke lower later in the day, and I truly think we're in one of those positions where larger accounts could start to think about putting on a smaller hedge. Now we didn't break below $60.29, which is my initial level. But just the way we broke down? I'd be thinking about it. In other words, yes, the same puts I mentioned on Sunday, but only buying a few such puts, to save a bit on premium, and only 'soften' any potential blow that downside risk presents.

Johnson & Johnson (JNJ)
One Hour Chart
(Click to Enlarge)


Who knows? We could bounce off of that $60.30 region, and never breach the support. But it's at times like this that personally? I'd have my finger near the trigger finger, and be watching the tape closely for the opportunity to put on any such small hedge. And as I mentioned Sunday, with a clear break below that second area of support ... would be an opportunity to increase the size of the hedge. Since I see more downside risk with Johnson & Johnson (JNJ), this is not one I'm looking at buying more of, or averaging down on with these prices.

Coca-Cola (KO)? We're trending nicely upwards, but I want to see us take out that higher high of the $64.80 region. On a larger account? If this trend holds, I don't think averaging in and buying more would necessarily be a bad thing.

But that's just me.

* * *

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


Monday, February 21, 2011

Monday Challenge Project Summary: February 21, 2011 (Something Pretty and Taking Crap)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,067.96
Trading "Sister" Balance: $2,244.36
Side-pocket Savings "Sister" Balance: $675.00
Total Challenge Project Funds: $3,987.32

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, 2010 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.

(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: $1,077.39
(YTD the account is +5.59% YTD Return is about -1.64% )

  • 6.2685 shares of KO (DRIP is on for 4.2685 shares - Yield is +2.912 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.535 % )
  • 6 shares of GIS (DRIP is not on for any shares - Yield is +3.102 % )
  • Cash $137.37
-$95.37 of this cash I reserve for 'maneuvering' capital ( 8.852 %)
-$ 7.00 of this cash I reserve to D.C.A. KO (0.6497 % )

-$28.00 of this cash I reserve to D.C.A. JNJ ( 2.599 % )
-$ 3.00 of this cash I reserve to D.C.A. GIS ( 0.2785 % )

-This leaves $ 2.00 cash available for a new purchase ( 0.1856 % )
-This leaves $ 2.00 cash available for a second new purchase ( 0.1856 % )
  • Additional $168.75 ( 15.66 % ) available from slush fund, up to $1,246.14

Trading "Sister" Account: $2,269.36
( YTD cash equity up 2.253 % Return on Capital is 0 % )
  • 2% risk tolerance gives us $45.38 'at risk' levels
  • 3% risk tolerance gives us $68.08 'at risk' levels
  • Additional $168.75 available from draw-down / slush fund, to $2,438.11

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
- As described in previous entries, all deposits past $675.00 will be towards an interest bearing account, although it separate accounts will still be treated as one 'sister' portion of the book.


Total $500 Challenge Project Balance: $4,021.75 ( YTD the account is +4.063% YTD Return is about -0.4446 % )

* * *

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

Sunday, February 20, 2011

Airelon's Challenge Chronicles No. 12 (VIDEO)

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

This week, I'm moving all of the A.C.C. entry to a video. Mainly, due to the fact that a) once I begin to discuss the 'dividend investing' side of things, I have some charts that are screen captured, and b) what I have to say on the trading route.

So here it is ... A.C.C. No. 12 ...

(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 this entry.

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

Investing "Sister" Account: $1,458.25
( YTD the account is +5.126% Return on Capital YTD is -0.2667% )
  • 6.5958 shares of KO (DRIP is on for 4.5958 shares - Yield is +2.912 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.535 % )
  • 10.08004 shares of GIS (DRIP on for 10.08004 share - Yield is +3.102 % )
  • Cash: $351.71
- $186.00 of this cash I reserve for 'maneuvering' capital ( 12.76 % )
- $ 38.00 of this cash I reserve to D.C.A. KO ( 2.606 % )

- $ 75.00 of this cash I reserve to D.C.A. JNJ ( 5.143 % )
- $ 25.96 of this cash I reserve to D.C.A. GIS (
1.78 % )
- This leaves $23.75 cash available for a new purchase ( 1.629 % )
- This leaves $ 3.00 cash available for a second new purchase ( 0.2057 % )
  • Additional $225.00 ( 15.43 % ) available from slush fund, up to $1,683.25


Trading "Sister" Account
: $2,910.30
( YTD the account is +11.6% Return on Capital YTD is +6.494% )
  • 2% risk tolerance gives us $58.20 'at risk' levels
  • 3% risk tolerance gives us $87.30 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $3,160.30


Savings Side-Pocket Balance:
$900.67
(YTD cash equity up about 0.07444 % Return on Capital is 0.07444 %)
  • $225.00 for a Slush fund / Draw-down Kill Switch fund
  • $450.67 for a Base Savings
  • $225.00 for Emergency Savings
-$0.67 paid in interest for January for 0.10% compounding monthly

-$675.67 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: $5,269.22 ( YTD the account is +7.646% Return on Capital YTD is +3.42% )


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

Saturday, February 19, 2011

No Week in Review ... Sort Of ...

I'm trying to manage my time more efficiently.

I'm home, and would have time to put some sort of "Week in Review" together. But yesterday ... I had my extended thoughts on "A Discussion of Food Prices and Real Food Shortages". That took a bit of time to put together, and at the same time ... well encapsulates where my thoughts have been for the last week. Call that entry an 'unofficial' "Week in Review".

At the same time I'm working on getting my taxes together, and by Monday morning, I want to have another issue of A.C.C. released.

So ... I'm just going to hold off from having a "Week in Review" for this particular week so that I can concentrate on an "A.C.C." of a level of quality that I would be happy producing ...

Friday, February 18, 2011

A Discussion of Food Prices and Real Food Shortages (VIDEOS)

"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence." - John Adams

Food costs are soaring. They're talking about it as I watch Bloomberg. So what's the cause? Is it speculators?

Or as Paul Harvey would ask ... is there another side of the story?

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



Here is the blip.tv version of the video.

Once again, as the Associated Press reported ...



And here is the link to the "Commodity Futures" series, or playlist.

* * *

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, February 17, 2011

I Quote My Wife ... "You're Such a Dork" (VIDEO)

And just think ... she has to live with me !! :)



Blip.tv linkage for those who live in countries by which YouTube partners like myself are blocked ...

Tuesday, February 15, 2011

Language, Trading Commodities, Trading Stocks and Stagflation (VIDEO)

"Thus, flexibility, as displayed by water, is a sign of life. Rigidity, its opposite, is an indicator of death." - Anthony Lawlor

"... I've broken it down into kind of an overall view. Because I don't think it's just enough to give people a bunch of numbers, and things, and here's a system. Because my sense is you get a system, or some parameters to trade with ... and you think you're a great trader. And you're not. And I'm not. Because really being a great trader takes more than just having something mechanical to follow. Being a great trader, means that you have to understand what's going on. Because whatever is going on now, will be different than anything the past. And anything in the future, will not be exactly like now." - Larry Williams


This morning, I had a few thoughts rattling around inside of my head. Instead of a podcast or a text entry, I decided just to 'vlog' them ...

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



Here is the blip.tv version of the video.

* * *

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, February 14, 2011

Monday Challenge Project Summary: February 14, 2011 (VIDEO)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,035.16
Trading "Sister" Balance: $2,244.36
Side-pocket Savings "Sister" Balance: $675.00

Total Challenge Project Funds:
$3,954.52

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 DIVIDEND INVESTING Account.

(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.

Let me clarify a few of my statements. When I said: "My goal for this year is to bump up the maneuvering capital", I did not mean that this year, almost all of rule no. two will be applied to the dividend investing 'sister'. I meant that ... when I do apply rule number two towards the dividend investing 'sister' account this year, then the goal this year is to apply it towards the maneuvering capital.

I hope that helps clarify things.

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:
$1,067.96

(YTD the account is +4.666% YTD Return is about -2.501% )
  • 6.2685 shares of KO (DRIP is on for 4.2685 shares - Yield is +2.769 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.558 % )
  • 6 shares of GIS (DRIP is not on for any shares - Yield is +3.119 % )
  • Cash $137.37
-$95.37 of this cash I reserve for 'maneuvering' capital ( 8.93 %)
-$ 7.00 of this cash I reserve to D.C.A. KO ( 0.6555 % )

-$28.00 of this cash I reserve to D.C.A. JNJ ( 2.622 % )
-$ 3.00 of this cash I reserve to D.C.A. GIS ( 0.2809 % )

-This leaves $ 2.00 cash available for a new purchase ( 0.1873 % )
-This leaves $ 2.00 cash available for a second new purchase ( 0.1873 % )
  • Additional $168.75 ( 15.8% ) available from slush fund, up to $1,236.71

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
- As described in previous entries, all deposits past $675.00 will be towards an interest bearing account, although it separate accounts will still be treated as one 'sister' portion of the book.


Total $500 Challenge Project Balance: $3,987.32 ( YTD the account is +3.173% YTD Return is about -0.6822% )

* * *

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. 11 (PODCAST and VIDEO)

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

A bit of a warning. This is a long one. But then again, this is an unfiltered look at my thought processes ... for free.

There are rather extended thoughts on the investing side of things, and I'm sorry, a bit of 'Dan getting on his soapbox' when it comes to investing. But seriously, I think it will help also clearly explain why it is that you see me acting as I do on the 'investing sister' side of things. How it is that I incorporate data that I gleam from conference calls into my investing efforts.

I also discuss one trade that I've already discussed on the Facebook page ...

(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 I mentioned in the podcast, this week I am including the podcast in video format, including charts when speaking of specific markets. If you prefer the video version, I have included that below on YouTube ...

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



Here is the blip.tv version of this podcast.

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

Investing "Sister" Account: $1,447.75
( YTD the account is +4.369% Return on Capital YTD is -0.9849% )
  • 6.5958 shares of KO (DRIP is on for 4.5958 shares - Yield is +2.769 % )
  • 5.1856 shares of JNJ (DRIP is on for 3.1856 shares - Yield is +3.558 % )
  • 10.08004 shares of GIS (DRIP on for 10.08004 share - Yield is +3.119 % )
  • Cash: $351.71
- $186.00 of this cash I reserve for 'maneuvering' capital ( 12.85 % )
- $ 38.00 of this cash I reserve to D.C.A. KO ( 2.625 % )

- $ 75.00 of this cash I reserve to D.C.A. JNJ ( 5.18 % )
- $ 25.96 of this cash I reserve to D.C.A. GIS (
1.793 % )
- This leaves $23.75 cash available for a new purchase ( 1.64 % )
- This leaves $ 3.00 cash available for a second new purchase ( 0.2072 % )
  • Additional $225.00 ( 15.54 % ) available from slush fund, up to $1,672.75


Trading "Sister" Account
: $2,910.30
( YTD the account is +11.6% Return on Capital YTD is +6.494% )
  • 2% risk tolerance gives us $58.20 'at risk' levels
  • 3% risk tolerance gives us $87.30 'at risk' levels
  • Additional $225.00 available from draw-down / slush fund, to $3,160.30


Savings Side-Pocket Balance: $900.67
(YTD cash equity up about 0.00 % Return on Capital is 0.07444 %)
  • $225.00 for a Slush fund / Draw-down Kill Switch fund
  • $450.67 for a Base Savings
  • $225.00 for Emergency Savings
-$0.67 paid in interest for January for 0.10% compounding monthly

-$675.67 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: $5,258.06 ( YTD the account is +7.418% Return on Capital YTD is +3.201% )


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

Saturday, February 12, 2011

Week in Review: ThinkScript Discovery, Consumer Inflation and Developing Markets (PODCAST)

"Know how to listen, and you will profit even from those who talk badly." - Plutarch, Greek Philosopher, 46-120 C.E.

Welcome to the Week in Week in Review podcast!

I mentioned in the last entry for "Airelon's Challenge Chronicles", number 10, that I would be focusing on catching up on my conference calls. So that's how I spent my week. I discuss what trends I began to gleam from those calls ...

(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.

Some folks prefer the video version of the "Week in Review", as I include charts when speaking of specific markets. If you prefer the video version, I have included that below on YouTube ...

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



Here is the blip.tv version of this podcast.

* * *

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 ris

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