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Saturday, April 30, 2011

Someone New has "Joined" the Fight

"Once more into the breach, dear friends, once more; Or close the wall up with our English dead !!"


I'm not going to be able to get to the "Week in Review" podcast this Saturday. I'm hoping to have something up by tomorrow. Hopefully by tomorrow morning, because I have a lot I want to say regarding unemployment, quality of employment, conference calls, and much more.

But I thought I would leave you with this.

We have a new blogger spreading the message that you do not need $250,000.00 to start investing and trading, the markets are not 'rigged' against you, and you can follow a real model that approaches the markets in a sane, rational manner.

"Pulling Ourselves Up Financially"

And as many know, the war on the idea that you need $50,000 to begin is a war that I firmly believe in carrying forward ...


Thursday, April 28, 2011

Portfolio Management: Drivers and Goals (PODCAST)

"When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps." - Confucius

Today ... we're going to have a short podcast entry.

I had an email question come in a couple of days ago that relates to a topic that I've wanted to discuss for some time. And in a short while you'll see this process begin with the Challenge Project.

What process? Portfolio management as it relates to savings, dividend investing, "drivers" and "goals" to move a book forward ...

(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.

* * *

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

Wednesday, April 27, 2011

Short and Sweet

There will be only one short text entry today.

Go read this.

Then read it again.

Then print out that post.

Then the next time someone tells you that "Quantitative Easing" is 'printing money' to put into the economy? Roll up that post, and summarily beat them over the head with it.

* * *

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

Tuesday, April 26, 2011

Airelon's Challenge Chronicles 18.2: Two Sisters 'Graduate'

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

A.C.C. has well, evolved somewhat, from it's original stated purpose. Somewhat.

Originally, I wanted to run A.C.C. successfully three times before turning over to the Challenge Project for active trading. However, the time necessary to do this ... well ... it'd simply take too long.

But the reason for A.C.C. remains the same. An ability to demonstrate how I would handle a portfolio of this size, until my actual Challenge Project book is ready for active management.

So I was looking over at the savings side-pocket 'sister' account for A.C.C. the other day ...


A.C.C. Savings Side-Pocket Balance: $975.20
(YTD cash equity up about 8.356 % Return on Capital is 0.02051 %)
  • $243.75 for a Slush fund / Draw-down Kill Switch fund
  • $487.70 for a Base Savings
-$401.70 of this cash I reserve for savings 'maneuvering' capital ( 82.37 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 12.1 % )
-$ 10.00 of this cash I reserve for the first side-pocket purchase ( 2.05 %)
-$ 10.00 of this cash I reserve for the second side-pocket purchase ( 2.05 %)
-$ 7.00 of this cash I reserve for the hedging account ( 1.435 %)
  • $243.75 for Emergency Savings
-$731.45 of this cash is in an interest bearing account.
-$243.75 remains at the brokerage in an account for draw-down


And I was thinking ... there's really no reason for me to continue this side of book for "Airelon's Challenge Chronicles". A little more than a month's deposits of rule no. two towards the actual Challenge Project, and we'd be exactly where A.C.C. is at for the savings side-pocket account.

That got me to thinking about the dividend investing 'sister' side of the "Airelon's Challenge Chronicles" ...


A.C.C. Investing "Sister" Account: $1,554.76
( YTD the account is +12.08 % Return on Capital YTD is +3.848 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.7696 % )
  • 5.2147 shares of JNJ ( DRIP is on for 3.2147 shares - Yield is +3.3713 % )
  • 10.08004 shares of GIS ( DRIP on for 10.08004 share - Yield is +2.9544 % )
  • Cash: $388.73 ( 25 % )
- $200.00 of this cash I reserve for 'maneuvering' capital ( 12.86 % )
- $ 45.00 of this cash I reserve to D.C.A. KO ( 2.894 % )

- $ 78.00 of this cash I reserve to D.C.A. JNJ ( 5.017 % )
- $ 31.98 of this cash I reserve to D.C.A. GIS ( 2.057
% )
- This leaves $23.75 cash available for a new purchase ( 1.528 % )
- This leaves $10.00 cash available for a second new purchase ( 0.6432 % )
  • Additional $237.50 ( 15.28 % ) available from slush fund, up to $1,792.26

I could continue to tweek and maneuver this account? But seriously, it's exactly where the actual accounts will be in a short while.

So from this point forward, when referring to the savings side-pocket or the dividend investing portion of "Airelon's Challenge Chroncles"? I'll simply refer you to this entry. We'll consider the Challenge Project savings side-pocket and dividend investing portion as 'live', and working towards the balances that you see listed above. We'll simply focus on trades for the A.C.C. side of things until such time that the actual Challenge Project is ready to take over.

* * *

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

Monday, April 25, 2011

Monday Challenge Project Summary: April 25, 2011

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,209.68
Trading "Sister" Balance: $2,269.36
Side-pocket Savings "Sister" Balance: $775.02
Total Challenge Project Funds: $4,254.06

Introduction:
The original video explanation of the Challenge Project that began with $500, is to be found here. If you would like to hear the "why" behind the challenge project, you can find that here as well as 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 SAVING SIDE-POCKET Account.

Remember ... as I have mentioned on previous entries, I'm currently using a very specific 'rule no. two rotation' at the moment.

"I'll be looking for every 1 application of rule no. two towards the dividend investing 'sister' account, for 3 deposits to the savings-sidepocket 'sister', and 5 deposits towards the trading 'sister' account."

This is the last week for the third deposit to the savings / side0pocket 'sister' account, before we begin depositing rule no. two towards the trading account.

A couple of other things I wanted to mention, is that we'll have an interest deposit for that portion of the base savings that is located within the interest bearing account, and at the same time, there will be a dividend payment sometime next week from General Mills (GIS)

And tomorrow is the Coca-Cola (KO) Call ...


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: $1,230.53
(YTD the account is +20.6 % YTD Return is abou
t +2.943 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.7696 % )
  • 5.2147 shares of JNJ ( DRIP is on for 3.2147 shares - Yield is +3.3713 % )
  • 6 shares of GIS ( DRIP is not on for any shares - Yield is +2.9544 % )
  • Cash $239.39 ( 19.45 % )
-$150.37 of this cash I reserve for 'maneuvering' capital ( 12.22 % )
-$ 17.94 of this cash I reserve to D.C.A. KO ( 1.458 % )
-$ 42.08 of this cash I reserve to D.C.A. JNJ ( 3.42 % )
-$ 19.00 of this cash I reserve to D.C.A. GIS ( 1.544 % )
-This leaves $ 5.00 cash available for a new purchase ( 0.4063 % )
-This leaves $ 5.00 cash available for a second new purchase ( 0.4063 % )
  • Additional $200.00 ( 16.25 % ) available from slush fund, up to $1,430.53

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 $200.00 available from draw-down / slush fund, to $2,469.36

Savings Side-Pocket Balance: $800.02
(YTD cash equity up about 28.03 % Return on Capital is 0.025 % )
  • $200.00 for a Slush fund / Draw-down Kill Switch fund
  • $400.02 for a Base Savings
-$322.02 of this cash I reserve for savings 'maneuvering' capital ( 80.46 %)
-$ 56.00 of this cash I reserve for CD Ladder creation ( 13.99 % )
-$ 9.00 of this cash I reserve for the first side-pocket purchase ( 2.249 % )
-$ 9.00 of this cash I reserve for the second side-pocket
purchase ( 2.249 % )
-$ 4.00 of this cash I reserve for the hedging account ( 0.9995 %)
  • $200.00 for Emergency Saving
- 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: $4,299.91 ( YTD the account is +11.26 % YTD Return is about +0.8254 % )

* * *

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, April 24, 2011

Airelon's Challenge Chronicles 18

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

For this week, the $25.00 weekly deposit is being transferred to the Challenge Project SIDE-POCKET SAVING Account.

There is no update from the the last comments I had on this 'A.C.C. book', thus, I do not really feel there is the need for a podcast or a video. I'm simply maintaining the strategy that I outlined in previous A.C.C. entries. We're going to be patient this week and next, and then begin to implement the trading applications ... which starts next week.

I will state that I believe it's interesting that although I've endured drawdown of less than one half of one percent this year for the 'A.C.C. book', I'm now positive by 3.848%

Maybe I'm not an idiot after all ...

:^)

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

Investing "Sister" Account: $1,554.76
( YTD the account is +12.08 % Return on Capital YTD is +3.848 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.7696 % )
  • 5.2147 shares of JNJ ( DRIP is on for 3.2147 shares - Yield is +3.3713 % )
  • 10.08004 shares of GIS ( DRIP on for 10.08004 share - Yield is +2.9544 % )
  • Cash: $388.73 ( 25 % )
- $200.00 of this cash I reserve for 'maneuvering' capital ( 12.86 % )
- $ 45.00 of this cash I reserve to D.C.A. KO ( 2.894 % )

- $ 78.00 of this cash I reserve to D.C.A. JNJ ( 5.017 % )
- $ 31.98 of this cash I reserve to D.C.A. GIS ( 2.057
% )
- This leaves $23.75 cash available for a new purchase ( 1.528 % )
- This leaves $10.00 cash available for a second new purchase ( 0.6432 % )
  • Additional $237.50 ( 15.28 % ) available from slush fund, up to $1,792.26


Trading "Sister" Account
: $2,969.37
( YTD the account is +13.86 % Return on Capital YTD is +5.192 % )
  • 2% risk tolerance gives us $59.38 'at risk' levels
  • 3% risk tolerance gives us $89.08 'at risk' levels
  • Additional $237.50 available from draw-down / slush fund, to $3,206.87


Savings Side-Pocket Balance:
$975.20
(YTD cash equity up about 8.356 % Return on Capital is 0.02051 %)
  • $243.75 for a Slush fund / Draw-down Kill Switch fund
  • $487.70 for a Base Savings
-$401.70 of this cash I reserve for savings 'maneuvering' capital ( 82.37 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 12.1 % )
-$ 10.00 of this cash I reserve for the first side-pocket purchase ( 2.05 %)
-$ 10.00 of this cash I reserve for the second side-pocket
purchase ( 2.05 %)
-$ 7.00 of this cash I reserve for the hedging account ( 1.435 %)
  • $243.75 for Emergency Savings
-$731.45 of this cash is in an interest bearing account.
-$243.75 remains at the brokerage in an account for draw-down


Total Airelon's Challenge Chronicles Balance: $5,404.11 ( YTD the account is +10.4 % Return on Capital YTD is +3.03 % )


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 15 years of experience in trading and investing in these markets. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk

Week in Review: Investing Priorities (PODCAST)

"I don't think anyone is thinking long-term now." - Thomas Mann

Welcome to the Week in Week in Review podcast!

There was an excellent discussion in the comments section of a blog entry last week, and I'd like to spend some time this week discussing my outlook on investing, and that portion of my portfolio ...

(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.

I will not have time this week to convert the podcast to a video. There's just no way possible. But I have included a few charts on the podcast itself that illustrates the principles that I'm discussing. Here are charts for Johnson and Johnson's (JNJ) stock price, net sales, diluted earnings per share, as well as Dividends Paid Per Share that I discuss in the above podcast ....

Johnson & Johnson (JNJ) Daily Chart
(Click to Enlarge)








* * *

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

Friday, April 22, 2011

Fiat Currency is Backed By .... (VIDEO)

"Let no one think that flexibility and a predisposition to compromise is a sign of weakness or a sell-out." - Paul Kagame

On Thursday, October 9th I had a blog entry regarding "Airelon's Thoughts Regarding the Gold Standard".

Since that time? I've received so many comments, emails and private messages, that I've almost forced myself into defending the fiat currency system.

Which I don't want to do. Not at all. Anyone who has listened to my thoughts for any length of time, knows that I do not want to advocate, or defend any economic school of thought, nor do I want to defend any one system. I just try to point to 'what is'. To determine 'what is', I have to know each theory accurately. I have to know the drawbacks and the advantages. Thus, I can walk into any trade, better informed. Any investment, better informed.

And the fact of the matter is that there are very real problems with the fiat currency system, as well as benefits.

This video will replace, or perhaps ... supplement this other entry ...

(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.

Here is Mike Norman's entry on debasement vs. devaluing.

* * *

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

Thursday, April 21, 2011

Sometimes? It's just about Holding On ...

There is a prevalent view that becoming a market professional is all about 'making calls' or 'buying stocks' or 'selling stocks'. There is the ever present idea in the minds of many that a market professional is constantly on the phone, reviewing charts and making 'predictions'.

Not so.

At times ... it's just about hanging on for the ride. Because as I mentioned some time ago ... buy and hold is not dead.

I'm still not sure what I'm going to do with my silver. Honestly. And it gets a little more than aggravating when I'm told by others what to do with my own assets. Especially by people who have not even taken the time to read my overall portfolio strategy.

Silver Futures
(click chart to enlarge)


At this point, I still have my silver classified as an asset in my own personal side-pocket. In other words, it's not a trade. It's a 'holding'. To be sure, a holding that's risen in value 384.2%. But it's still my holding, and I will decide if I move it from 'asset side-pocket' to a pure trade, and sell it off.

At the present time, since I frequently travel to Mexico, it's working as a wonderful hedge against a cheaper U.S. Dollar, which has only sunk about -17%

Moving on to some of my equity holdings ...

Johnson and Johnson (JNJ)

Eh?

Seriously.

Johnson & Johnson (JNJ)
(click chart to enlarge)


Two days of action erases 150 days of a down trend in Johnson & Johnson (JNJ). With that in mind, the way I setup the dividend investing portfolio for both A.C.C., as well as the Challenge Project, I am now positive on the return in terms of yield for the year. For A.C.C., by 4.013 %, and for the Challenge Project, by 3.134%. And as we learned from the conference call? Buybacks are still in the works. So regardless of short term price action, I have an asset that will be returning value to shareholders.

Ok, enough said on that route. Let's move on to General Mills (GIS)

General Mills (GIS)
(click chart to enlarge)


We are just beginning to make an attempt at breaking out of the weekly range. Hopefully, this trend can continue, but I'll just have to keep an eye on it in coming weeks.

* *

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

Monday, April 18, 2011

Monday Challenge Project Summary: April 18, 2011

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,197.06
Trading "Sister" Balance: $2,269.36
Side-pocket Savings "Sister" Balance: $750.02
Total Challenge Project Funds: $4,216.44

Introduction:
The original video explanation of the Challenge Project that began with $500, is to be found here. If you would like to hear the "why" behind the challenge project, you can find that 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.

(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 these podcasts. 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 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: $1,209.68
(YTD the account is
+18.555 % YTD Return is about +1.199 % )
  • 6.3283 shares of KO (DRIP is on for 4.3283 shares - Yield is +2.7643 % )
  • 5.2147 shares of JNJ (DRIP is on for 3.2147 shares - Yield is +3.5667 % )
  • 6 shares of GIS (DRIP is not on for any shares - Yield is +2.9987 % )
  • Cash $239.39 ( 19.79 % )
-$150.37 of this cash I reserve for 'maneuvering' capital ( 12.43 % )
-$ 17.94 of this cash I reserve to D.C.A. KO ( 1.48 % )
-$ 42.08 of this cash I reserve to D.C.A. JNJ ( 3.48 % )
-$ 19.00 of this cash I reserve to D.C.A. GIS ( 1.57 % )
-This leaves $ 5.00 cash available for a new purchase ( 0.41 % )
-This leaves $ 5.00 cash available for a second new purchase ( 0.41 % )
  • Additional $193.75 ( 16.02 % ) available from slush fund, up to $1,403.43

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 $193.75 available from draw-down / slush fund, to $2,463.11

Savings Side-Pocket Balance: $775.02
(YTD cash equity up about 24 % Return on Capital is 0.0025 % )
  • $193.75 for a Slush fund / Draw-down Kill Switch fund
  • $387.52 for a Base Savings
-$314.52 of this cash I reserve for savings 'maneuvering' capital ( 81.16 %)
-$ 54.00 of this cash I reserve for CD Ladder creation ( 13.94 % )
-$ 8.00 of this cash I reserve for the first side-pocket purchase ( 2.065 % )
-$ 8.00 of this cash I reserve for the second side-pocket
purchase ( 2.065 % )
-$ 3.00 of this cash I reserve for the hedging account ( 0.7742 %)
  • $193.75 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: $4,254.06 ( YTD the account is +10.074 % YTD Return is about +0.338 % )

* * *

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

Sunday, April 17, 2011

Airelon's Challenge Chronicles 17

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

For this week, the $25.00 weekly deposit is being transferred to the Challenge Project SIDE-POCKET SAVING Account.

There is no update from the the last comments I had on this 'book', thus, I do not really feel there is the need for a podcast or a video. I'm simply maintaining the strategy that I outlined in previous A.C.C. entries. We're going to be patient this week and next, and then begin to implement the trading strategy.

Tomorrow is the entry on the actual challenge project, and I will make a comment on that time about savings, interest rates, and the growth of the expansion of that side of my portfolio or 'book'.


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

Investing "Sister" Account: $1,531.67
( YTD the account is +10.42 % Return on Capital YTD is +2.306 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.7643 % )
  • 5.2147 shares of JNJ ( DRIP is on for 3.2147 shares - Yield is +3.5667 % )
  • 10.08004 shares of GIS ( DRIP on for 10.08004 share - Yield is +2.9987 % )
  • Cash: $388.73 ( 25.38 % )
- $200.00 of this cash I reserve for 'maneuvering' capital ( 13.06 % )
- $ 45.00 of this cash I reserve to D.C.A. KO ( 2.938 % )

- $ 78.00 of this cash I reserve to D.C.A. JNJ ( 5.092 % )
- $ 31.98 of this cash I reserve to D.C.A. GIS ( 2.088
% )
- This leaves $23.75 cash available for a new purchase ( 1.551 % )
- This leaves $10.00 cash available for a second new purchase ( 0.6529 % )
  • Additional $237.50 ( 15.51 % ) available from slush fund, up to $1,769.17


Trading "Sister" Account
: $2,969.37
( YTD the account is +13.86 % Return on Capital YTD is +5.192 % )
  • 2% risk tolerance gives us $59.38 'at risk' levels
  • 3% risk tolerance gives us $89.08 'at risk' levels
  • Additional $237.50 available from draw-down / slush fund, to $3,206.87


Savings Side-Pocket Balance:
$950.20
(YTD cash equity up about 5.578 % Return on Capital is 0.02105 %)
  • $237.50 for a Slush fund / Draw-down Kill Switch fund
  • $475.70 for a Base Savings
-$393.70 of this cash I reserve for savings 'maneuvering' capital ( 82.76 %)
-$ 58.00 of this cash I reserve for CD Ladder creation ( 12.19 % )
-$ 9.50 of this cash I reserve for the first side-pocket purchase ( 1.997 %)
-$ 9.50 of this cash I reserve for the second side-pocket
purchase ( 1.997 %)
-$ 5.00 of this cash I reserve for the hedging account ( 1.051 %)
  • $237.50 for Emergency Savings
-$712.70 of this cash is in an interest bearing account.
-$237.50 remains at the brokerage in an account for draw-down


Total Airelon's Challenge Chronicles Balance: $5,451.24 ( YTD the account is +11.36 % Return on Capital YTD is +3.44 % )


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 15 years of experience in trading and investing in these markets. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk

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