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Thursday, June 30, 2011

Charting 101 (Series): Workstations ... Simple and Peaceful (Remake VIDEO)

"Simplicity is the ultimate sophistication." - Leonardo da Vinci

Most of my entries, videos and podcasts discuss things like "Emotional Discipline" or "Money Management" or "Portfolio Management". But at a certain point? You have to know the nuts and bolts behind a chart. This video is actually a remake video to a video playlist, or series of videos that I had over 3 years ago on "Charting 101".

But before we get to the charts? I want to take some time out and discuss the workstation at which I examine my charts ...

(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: 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. 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, June 27, 2011

Monday Challenge Project Summary: June 27, 2011 (PODCAST)

Previous $500 Challenge Project Balances:

"The Three Sisters":

Investing "Sister" Balance: $1,257.68
Trading "Sister" Balance: $2,394.36
Side-pocket Savings "Sister" Balance: $825.19
Total Challenge Project Funds: $4,477.23

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.

In this week's Challenge Project Entry, I am going to include a podcast that is sort of the "State of the Challenge Project". I go through each account, state the positives, and what needs more work. I conclude with comments on my own psychology and discipline in regards this project of mine ....

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





Click here to download this podcast.

Here are the new balances for each of the Challenge Project accounts ...

Challenge Project Balances After Rule No. 2 Deposit:

Goals for Each Account
  • Investing Account: This Entry describes the next goal. Account is 'active'
  • Trading Account: $2,600.00
  • Savings Side-Pocket Account: This Entry describes the next goal. Account is 'active'

Investing Account Balance: $1,240.27
(YTD the account is +21.55 % YTD Return is about +1.632 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.8954 % )
  • 5.2422 shares of JNJ ( DRIP is on for 3.2422 shares - Yield is +3.5045 % )
  • 6 shares of GIS ( DRIP is not on for any shares - Yield is +3.0393 % )
  • Cash $267.21 ( 21.54 % )
Percentages of that Cash:
-$175.37 of this cash I reserve for 'maneuvering' capital ( 14.14 % )
-$ 17.94 of this cash I reserve to D.C.A. KO ( 1.45 % )

-$ 43.22 of this cash I reserve to D.C.A. JNJ ( 3.48 % )
-$ 20.68 of this cash I reserve to D.C.A. GIS ( 1.67 % )
-This leaves $ 5.00 cash available for a new purchase ( 0.40 % )
-This leaves $ 5.00 cash available for a second new purchase ( 0.40 % )
  • Additional $212.50 ( 17.13 % ) available from slush fund, up to $1,452.77
Investing Account Balance Year to Date
(Can be Enlarged)

Trading "Sister" Account: $2,394.36
( YTD cash equity up 7.885 % Return on Capital is 0 % )
  • 2% risk tolerance gives us $47.88 'at risk' levels
  • 3% risk tolerance gives us $71.83 'at risk' levels
  • Additional $212.50 available from draw-down / slush fund, to $2,606.86
Trading Account Balance Year to Date
(Can Be Enlarged)


Savings Side-Pocket Balance: $850.19
(YTD cash equity up about 36.03 % Return on Capital is 0.2235 % )
  • $212.50 for a Slush fund / Draw-down Kill Switch fund
  • $425.19 for a Base Savings
-$339.19 of this cash I reserve for 'burn rate / maneuvering' capital ( 39.9 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 6.94 % )
-$ 10.00 of this cash I reserve for the first side-pocket purchase ( 1.176 % )
-$ 10.00 of this cash I reserve for the second side-pocket
purchase ( 1.176 % )
-$ 7.00 of this cash I reserve for the hedging account ( 0.8233 %)
  • $212.50 for Emergency Saving
Savings Account Balance Year to Date
(Can Be Enlarged)


- 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: $4,484.82 ( YTD the account is +16.05 % YTD Return is about +0.4504 % )

* * *

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. 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, June 26, 2011

Airelon's Challenge Chronicles No. 24

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

For the month of June, 2011, all of rule no. two has already been applied TRADING account.

To be honest?

I haven't had a chance at all this weekend to look at the markets, charts, news, seasonal metrics or C.o.T. data.

So to put out a A.C.C. entry based on 'rushed' research ... well ... that's no way for me to trade and invest. In addition, I think it's important to 'share' that idea. At times, professional traders and investors, just like everyone else ... get a little behind in their schedule.

However I will say that this Sunday evening, the points that I will be researching in the next 48 hours?
  • Equity Markets: The charts, company news of the companies that I hold in the portfolio, seasonal metrics as opposed to how the market has performed recently
  • Commodity Markets: Are there any possible trades? Again, to see how I personally do this? I would refer ones to my 'methodology' series.
  • Savings Side-Pockets: Although A.C.C. itself has 'graduated' the dividend investing account and the 'savings side-pocket' to 'live' accounts? I have been intending to research how I want to implement a) constructing a small CD ladder for the actual challenge project and b) any possible side-pocket markets that I can begin to examine for purchases.
In short? There is a lot to research. At some point in the next 48 hours, I have to sit down, and research each of these points. I'll try to do so with a video, or perhaps a podcast for tomorrow's "Challenge Project" entry.

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



Investing "Sister" Account: Will no longer make Rule No. Two Deposits to this Account. Challenge Project Investing Account is Active. I will continue to track this account so as to mark progress of previous decisions.


Investing "Sister" Account:
$1,535.30

( YTD the account is +10.68 % Return on Capital YTD is +2.548 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.8954 % )
  • 5.2422 shares of JNJ ( DRIP is on for 3.2422 shares - Yield is +3.5045 % )
  • 10.15282 shares of GIS ( DRIP on for 10.15282 share - Yield is +3.0393 % )
  • Cash $389.87 ( 25.39 % )
Percentages of that Cash:
- $200.00 of this cash I reserve for 'maneuvering' capital ( 51.3 % )
- $ 45.00 of this cash I reserve to D.C.A. KO ( 11.54 % )

- $ 79.14 of this cash I reserve to D.C.A. JNJ ( 20.3 % )
- $ 31.98 of this cash I reserve to D.C.A. GIS
( 8.203 % )
- This leaves $23.75 cash available for a new purchase ( 6.092 % )
- This leaves $10.00 cash available for a second new purchase ( 2.565 % )
  • Additional $243.75 ( 15.7 % ) available from slush fund, up to $1,796.53


Trading "Sister" Account
: $3,193.47
( YTD the account is +22.46 % True Return on Capital YTD is +5.645 % )
  • 2% risk tolerance gives us $63.86 'at risk' levels
  • 3% risk tolerance gives us $95.80 'at risk' levels
  • Additional $243.75 available from draw-down / slush fund, to $3,437.22


Savings Side-Pocket Balance: Will no longer make Rule No. Two Deposits to this Account. Challenge Project Savings Side-Pocket is Active.
I will continue to track this account so as to mark progress of previous decisions.

Savings Side-Pocket Balance: $975.34
(YTD cash equity up about 8.371 % Return on Capital is 0.03487 %)
  • $243.75 for a Slush fund / Draw-down Kill Switch fund
  • $487.84 for a Base Savings
Percentages of that Cash:
-$401.84 of this cash I
reserve for 'burn rate / maneuvering' capital ( 82.37 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 12.09 % )
-$ 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
-$731.59 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: $5,704.11 ( YTD the account is +16.53 % Return on Capital YTD is +3.806 % )


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




* * *

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. 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, June 24, 2011

Charting 101 (Series): An Introduction (Remake VIDEO)

"Second, we have to make the most of the strengths we have, the amenities that many of our competitors cannot replicate. But again, those advantages won't mean much if we don't do a great job with the basics of our business." - Gerard Arpey

Most of my entries, videos and podcasts discuss things like "Emotional Discipline" or "Money Management" or "Portfolio Management". But at a certain point? You have to know the nuts and bolts behind a chart.

This video is actually a remake video to a video playlist, or series of videos that I had over 3 years ago on "Charting 101".

(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: 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, June 21, 2011

Airelons Challenge Chronicles No 23.2 (PODCAST)

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

In this entry, I update my thoughts on the previous A.C.C. entry by discussing a drawdown kill switch (amazing how many 'professionals' out there refuse to discuss this topic since they are 'always right') as well as how this weeks A.C.C. 23 points to the need to have parameters before entering a market.

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





Click here to download this podcast.

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



Investing "Sister" Account: Will no longer make Rule No. Two Deposits to this Account. Challenge Project Investing Account is Active. I will continue to track this account so as to mark progress of previous decisions.


Investing "Sister" Account:
$1,567.45

( YTD the account is +13 % Return on Capital YTD is +4.696 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.8463 % )
  • 5.2422 shares of JNJ ( DRIP is on for 3.2422 shares - Yield is +3.4188 % )
  • 10.15282 shares of GIS ( DRIP on for 10.15282 share - Yield is +2.9144 % )
  • Cash $389.87 ( 24.87 % )
Percentages of that Cash:
- $200.00 of this cash I reserve for 'maneuvering' capital ( 51.3 % )
- $ 45.00 of this cash I reserve to D.C.A. KO ( 11.54 % )

- $ 79.14 of this cash I reserve to D.C.A. JNJ ( 20.3 % )
- $ 31.98 of this cash I reserve to D.C.A. GIS
( 8.203 % )
- This leaves $23.75 cash available for a new purchase ( 6.092 % )
- This leaves $10.00 cash available for a second new purchase ( 2.565 % )
  • Additional $243.75 ( 15.7 % ) available from slush fund, up to $1,811.20


Trading "Sister" Account
: $3,193.47
( YTD the account is +22.46 % True Return on Capital YTD is +5.645 % )
  • 2% risk tolerance gives us $63.86 'at risk' levels
  • 3% risk tolerance gives us $95.80 'at risk' levels
  • Additional $243.75 available from draw-down / slush fund, to $3,437.22


Savings Side-Pocket Balance: Will no longer make Rule No. Two Deposits to this Account. Challenge Project Savings Side-Pocket is Active.
I will continue to track this account so as to mark progress of previous decisions.

Savings Side-Pocket Balance: $975.34
(YTD cash equity up about 8.371 % Return on Capital is 0.03487 %)
  • $243.75 for a Slush fund / Draw-down Kill Switch fund
  • $487.84 for a Base Savings
-$401.84 of this cash I reserve for savings 'maneuvering' capital ( 82.37 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 12.09 % )
-$ 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
-$731.59 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: $5,736.26 ( YTD the account is +17.12 % Return on Capital YTD is +4.391 % )


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




* * *

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. 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, June 20, 2011

Monday Challenge Project Summary: June 20, 2011 (VIDEO)

(Please note there was an A.C.C. entry earlier today)

Previous $500 Challenge Project Balances:


"The Three Sisters":

Investing "Sister" Balance: $1,228.04
Trading "Sister" Balance: $2,394.36
Side-pocket Savings "Sister" Balance: $800.19
Total Challenge Project Funds: $4,422.59

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 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.

This week, I want to discuss a bit of portfolio management, but after that necessary business? I want to discuss perspective. Why do I keep calling the $4,500 portfolio a "tiny" account?

(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 are the new balances for each of the Challenge Project accounts ...

Challenge Project Balances After Rule No. 2 Deposit:

Goals for Each Account
  • Investing Account: This Entry describes the next goal. Account is 'active'
  • Trading Account: $2,600.00
  • Savings Side-Pocket Account: This Entry describes the next goal. Account is 'active'

Investing Account Balance: $1,257.68
(YTD the account is +23.26 % YTD Return is about +3.059 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.8650 % )
  • 5.2422 shares of JNJ ( DRIP is on for 3.2422 shares - Yield is +3.4394 % )
- 0.0275 shares accumulated in DRIP on 6/14/2011 at $66.54
-$1.14 cash in cash dividend from Johnson & Johnson (JNJ) at other account
  • 6 shares of GIS ( DRIP is not on for any shares - Yield is +2.9513 % )
  • Cash $267.21 ( 21.25 % )
Percentages of that Cash:
-$175.37 of this cash I reserve for 'maneuvering' capital ( 65.63 % )
-$ 17.94 of this cash I reserve to D.C.A. KO ( 6.714 % )

-$ 43.22 of this cash I reserve to D.C.A. JNJ ( 16.17 % )
-$ 20.68 of this cash I reserve to D.C.A. GIS ( 7.739 % )
-This leaves $ 5.00 cash available for a new purchase ( 1.871 % )
-This leaves $ 5.00 cash available for a second new purchase ( 1.871 % )
  • Additional $206.25 ( 16.4 % ) available from slush fund, up to $1,463.93
Investing Account Balance Year to Date
(Can be Enlarged)



Trading "Sister" Account: $2,394.36
( YTD cash equity up 7.885 % Return on Capital is 0 % )
  • 2% risk tolerance gives us $47.88 'at risk' levels
  • 3% risk tolerance gives us $71.83 'at risk' levels
  • Additional $206.25 available from draw-down / slush fund, to $2,600.61
Trading Account Balance Year to Date
(Can Be Enlarged)



Savings Side-Pocket Balance: $825.19
(YTD cash equity up about 32.03 % Return on Capital is 0.02303 % )
  • $206.25 for a Slush fund / Draw-down Kill Switch fund
  • $412.69 for a Base Savings
-$326.69 of this cash I reserve for 'burn rate / maneuvering' capital ( 80.51 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 13.99 % )
-$ 10.00 of this cash I reserve for the first side-pocket purchase ( 2.249 % )
-$ 10.00 of this cash I reserve for the second side-pocket
purchase ( 2.249 % )
-$ 7.00 of this cash I reserve for the hedging account ( 0.9995 %)
  • $206.25 for Emergency Saving
Savings Account Balance Year to Date
(Can Be Enlarged)


- 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: $4,477.23 ( YTD the account is +15.85 % YTD Return is about +0.8451 % )

* * *

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. 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

Airelon's Challenge Chronicles No. 23 (PODCAST)

(Please note there is the Challenge Project entry later today)

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

For the month of June, 2011, all of rule no. two has already been applied TRADING account.

In this entry, I discuss my thoughts on the equities markets and dividend investing, my thoughts on three different possible trades, and then thoughts on how such ideas could be implemented from the standpoint of portfolio management and recent money management performance ...

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





Click here to download this podcast.

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



Investing "Sister" Account: Will no longer make Rule No. Two Deposits to this Account. Challenge Project Investing Account is Active. I will continue to track this account so as to mark progress of previous decisions.


Investing "Sister" Account:
$1,552.78

( YTD the account is +11.94 % Return on Capital YTD is +3.716 % )
  • 6.3283 shares of KO ( DRIP is on for 4.3283 shares - Yield is +2.8650 % )
  • 5.2422 shares of JNJ ( DRIP is on for 3.2422 shares - Yield is +3.4394 % )
- 0.0275 shares accumulated in DRIP on 6/14/2011 at $66.54
-$1.14 cash in cash dividend from Johnson & Johnson (JNJ) at other account

  • 10.15282 shares of GIS ( DRIP on for 10.15282 share - Yield is +2.9513 % )
  • Cash $389.87 ( 25.11 % )
Percentages of that Cash:
- $200.00 of this cash I reserve for 'maneuvering' capital ( 51.3 % )
- $ 45.00 of this cash I reserve to D.C.A. KO ( 11.54 % )

- $ 79.14 of this cash I reserve to D.C.A. JNJ ( 20.3 % )
- $ 31.98 of this cash I reserve to D.C.A. GIS
( 8.203 % )
- This leaves $23.75 cash available for a new purchase ( 6.092 % )
- This leaves $10.00 cash available for a second new purchase ( 2.565 % )
  • Additional $243.75 ( 15.7 % ) available from slush fund, up to $1,796.53


Trading "Sister" Account
: $3,193.47
( YTD the account is +22.46 % True Return on Capital YTD is +5.645 % )

+ $19.07 in Long U.S. Dollar Index Futures from 74280 to 74305 (Including Commissions)

- $87.02 in Long Cocoa Futures from 2900 to 2892 (Including Commissions)
  • 2% risk tolerance gives us $63.86 'at risk' levels
  • 3% risk tolerance gives us $95.80 'at risk' levels
  • Additional $243.75 available from draw-down / slush fund, to $3,437.22


Savings Side-Pocket Balance: Will no longer make Rule No. Two Deposits to this Account. Challenge Project Savings Side-Pocket is Active.
I will continue to track this account so as to mark progress of previous decisions.

Savings Side-Pocket Balance: $975.34
(YTD cash equity up about 8.371 % Return on Capital is 0.03487 %)
  • $243.75 for a Slush fund / Draw-down Kill Switch fund
  • $487.84 for a Base Savings
-$401.84 of this cash I reserve for savings 'maneuvering' capital ( 82.37 %)
-$ 59.00 of this cash I reserve for CD Ladder creation ( 12.09 % )
-$ 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
-$731.59 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: $5,728.48 ( YTD the account is +17.03 % Return on Capital YTD is +4.25 % )


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




* * *

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. 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

Saturday, June 18, 2011

Week in Review: Housing, Recoveries and Expectations (PODCAST)

"Given that the structure of an econometric model consists of optimal decision rules of economic agents, and that optimal decision rules vary systematically with changes in the structure of series relevant to the decision maker, it follows that any change in policy will systematically alter the structure of econometric models." - Robert E Lucas Jr.

Welcome to the Week in Week in Review podcast!

Well, since it's been a few weeks since I have had a "week in review" podcast ... I thought I would discuss benchmarking ones investing returns as it's something that Pulling Myself up Financially mentioned in an entry recently. As well, I though I would discuss my thoughts on the length of the economic recovery, factors that are currently in play, the housing market as well as some comments on oil prices.

(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.

The Lucas Critique really goes beyond saying that 'economic policy making' does no good. What it states ... is that for every change in macroeconomic policy, the result must be measured closely, because you've just changed the entire equation based upon unexpected results upon the consumer, and the dymanic means by which the individual citizen can adapt to those changes.

It basically states what I've said for years here on this blog.

All changes within a complex economic model are non-linear, not linear ... in nature.

* * *

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, June 16, 2011

Next A.C.C. May be Delayed

I'm not sure how much I'll be around in the next few days. Close "like-Family" friend who married my wife and I suffered life threatening situation ... so ... I'll be back when I'm back ...

Wednesday, June 15, 2011

Concluding thoughts on Psychology Playlist and Review of A.C.C. No. 22

"Sell in May and Go Away ..." - Market Mantra

For the introduction of this video, I make some concluding comments for the series of videos on "Investing and Trading Psychology and Emotional Discipline", as well as discuss the focus, as well as 'end goal' of this blog.

After those comments, I review my previous trades and comments from the previous entry of "Airelon's Challenge Chronicles" No. 22.

(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.

Oh ... and I mentioned in the above video that I would see which of the companies paid a dividend? It was Johnson & Johnson (JNJ) payout day.

* * *

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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