Monday, August 8, 2011

Week 15 Deposit

We certainly are in interesting financial times...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I made the video and posted it on youtube this morning before the markets were open. I am posting this blog entry after the markets have closed. I mention this because in the video I talk about the $100 going to trading. That hasn't changed. However after having two 5% drops in 3 days it tends to alter ones plans which I will share my thoughts on...

At the time of the transfer I was thinking that I might get a breather in the plummeting of the markets, I could build up a trading position and then if it started to fall again when focus returned to Italy and Spain I would be in a position to take advantage of that. Now though it appears that we might be back to a 2008 situation where we will be in free fall. We have already dropped around 16% total I could easily see another 16%. I would not be surprised in the least if we hit the 2008 lows.

However for trading? We have already gotten big moves. Volatility is high so that will make options more expensive. I have chased massive moves too many times and gotten in the bottom of them. It may move too far and too fast for a trade here. What then?

Then I look to invest. When everything has started to settle it will be a rare chance to buy cheap. I want to be in a position to buy more shares, not just trade their options.

So I am reserving the right to move the trading money over into investing. If this does turn out to be another 2008 where the general market fell by 50% I will be buying twice the shares for the same income stream. Remember these dividend companies didn't cut their dividends then I don't see them cutting them know especially with the record amount of money companies are hoarding.
For trading I am still testing and practicing. I can easily fund it later. The forex market will always be there for me to trade. However there won't always be large discounts on stocks.

Weekly Activity

$100 deposit into Trading

Model Portfolio Totals

Trading Account: $100
Max amount in trade (20%): $20
Max loss per trade (2%): $2

Investing Account: $1017.34
     O: 8 shares
     JNK: 7 shares. ($1.78 total dividends received)
     PCY: 10 shares. ($2.48 total dividends received)
Maneuvering: $265.15

Savings Accout: $300
Emergency: $250
Portfolio Protection: $50
CDs: $0
Precious Metals: $0

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial advisor, accountant, or tax advisor. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets

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