Saturday, July 15, 2006

A More Positive Post!

At mid-month things are looking a lot better than at the end of last month. Since the disastrous 29 June FOMC Day I have recouped my trading losses of that day and more by trading QQQQ. The market has fallen 8%, my model has added 5%, but my trading account has added 18%. This is due to trading on margin and buying and selling intraday - the model is based on closing (day-end) prices only. Don't believe the real estate gurus who tell you that only real estate allows leverage. Using leverage in the stock market is no more dangerous than in the real estate market if you know what you are doing... And if you don't know what you are doing it is just as dangerous in both (though I know how I could lose all your money for you in a day in the stock market, which isn't possible in the real estate market - it takes longer to lose all your money there - put all your money in an out of the money option the day before option expiry if you really want to lose it :)).

My Roth IRA account has reached a new high $10,860 from a total investment of $8000 a few months ago. So I am 28% of the way to the goal of making $10,000 in profits on my Roth IRA. Net worth is now only $3000 from my highest month-ending figure (though I reached maybe $328,000 at one point intra-month). I am $55,000 from reaching my end of year goal and so am behind where I should be at this point - $324,000. I am fairly confident now of achieving the goal though.

Recently my blog has discussed trading moves more and more and I hope that isn't too boring for those of you not interested in trading. By the way, it is dangerous to follow my moves blindly as maybe I won't have time to post when I change direction. Please just use these posts as additional opinions about market conditions. It is dangerous to try to follow anyone else's trading moves blindly!

Finally, nice to see a positive article about one of my more disappointing investments: Challenger Infrastructure Fund.

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