Archive | July, 2010

Fluctuation

30 Jul

Fluctuations in currency between CAD and USD played a big factor in my Visa play.  If currency stayed at the same level, I would have sold out at $475 gain.  But with conversion it was only $80 in profits after commissions.  So I stuck it out with holding for a little bit.  Thursday alone, Visa dropped $3.20 basis points… back to the exact amount I had bought into a while back.  Sad reality is just a waiting game.

The market see no bounds.  It will take a sharp turn in an instant.  Buyers jump in at the right opportunity, sellers trigger massive fear of a downfall.  Get the timing spot on, you will be laughing to the bank.

Let Go of BMO!

28 Jul

Dividend of 70 cents per share was announced today for BMO.  Hopefully, I have held long enough to get in on the dividends.  The shares of BMO took a little tumble, so I finally let go of BMO at a profit of $530.00 after holding for 24 trading days.  This is my first winning trade that I have ever had within a short time span of a month.  Time to congratulate myself!!  Hooray!!

This is the beginning of capturing that rise in a stock and locking in the gains.  My old buy and hold strategy didn’t fare too well in the past.  There are still a lot of stocks I’m holding on to with a significant loss if I do sell now.  But what I’ve learned is to never let your stock go any higher at a 8% loss.  It’s time to limit my losses and capture all my gains to create a great fortune!

Saving Quarters

27 Jul

When I was young, I started my own little Keroppi Bank where I would keep track of my deposit and withdrawal of quarters most of the time.  My favorite coin is a quarter!  Quarters are easy to count and collect.  Looking at a quarter, it doesn’t seem much as a whole but once you start a pile of them, they really do add up fast.  Forty pieces of quarters will add up to a whopping ten bucks!  I used to roll them up and deposit roll of quarters into my old BMO savings account.  Saving quarters has led me to a world of financial well-being!  It taught me how to manage my own money.

Why do I save?  I save for a safety net;  for my future simple as that.  I try my earnest to save as hard as I can, but there are always expenses that pops into the picture.  Expenses that can put me into debt if I do not budget properly.  Making the right decisions to where I put my money will greatly affect the outcome of multiplying my fortune or costing me an arm or a leg.

Money is an essential tool in life to get through in this day and age.  We all live in a capitalistic society.  All for money or all for nothing mentality.  Money plays an important role in one’s life.  It gives one the power to go far in whatever they desire.

Waste of Money

26 Jul

2006 Civic DXCar gives you the freedom to go anywhere, but it also comes with a financial burden.  Buying a car is the ultimate money pit.  When I first started at my current job, I decided to buy a new Honda Civic DX to travel to work.  I actually wanted to buy an older car, but my dad insisted that it’s better to buy new.  Sometimes, I should just stick with my ideas instead of listening to others.

I travel 30km each day to and from work plus weekend driving!  I’ve put on a good 70,000km after four years of driving.  Every year, I have to buy insurance for my car.  Finally, I have re-gained my 40% discount thus my renewal rate is lower than the previous years.  Every ten days, I have to fill up my tank.  Gas as of now is at $1.16/litre.  Maintenance are costly as well.  Time to change the tires soon. 

The tally so far is a heaping $40,000 and counting.  That could have been a downpayment for a place of my own. 

Visa Review in Week

23 Jul

Buy $71.99
Current $75.59
$3.60 Gain

Analysis:  Due to currency exhange, my gains are limited as CAD dollar went up against USD dollar thus if I do sell, I’ll get less money back than what I paid for. 

Conclusion:  Hold till currency exchange is more favorable or wait for a significant share appreciation.

10 Cent Tournament

20 Jul

A great way to kill boredom is to play 10 cent tournaments.  Cheap way to offer you tons of entertainment at the hands of Texas-Holdem for a possible 1st place finish with a payout of $8.50!  Tournaments offer you continuous play until you get taken out by a bad beat or your chips simply runs out due to the way you play.  Most of the time, I don’t even place top 36 to earn my dime back plus some more.  It’s just for fun.  A dime is wasted till there is no money left in my Pokerstar account.

Last night, I placed 35th place after an hour of play.  So I won 20 cents.  Left with less than $2.00 in my Poker Star account basically after my dad depleted my initial $100 deposit.  I ventured to the 2/4 cent blinds no limit tables for a few rounds of Texas-Holdem.  That’s where I can slowly work my way up hopefully.  As of now, I have $4.00 left in my account.  I plan to win pots from here and there so I can regain my initial deposit.  My hope is bleak but you never know!

I use Visa to make a deposit to my online poker account.  This transaction is deemed as a cash advance and charge you a $5 fee upfront plus interest on the balance owing.  I don’t like this at all.  This may be the last I’ll ever put money into this thing.

 

Re-Entered Visa

16 Jul

Markets took a big hit based on weak U.S. consumer data.  Visa dropped 3.85 basis points alone  today.  I figured it’ll rebound on Monday, but the down trend might continue.  It’s risky but I’m ready to tackle it.  Thus, I made an entry at $71.99.  I did not get it at its bottom, which is $71.45.  The real time quotes on Questrade was delayed by 15 minutes which slipped my mind for an instant.  Ultimately, that short time frame made me buy at a higher price than what I would have liked to.

Nevertheless, Visa is a solid company with lots of potential.  I have no worries that it’ll bounce back to around $76.50 where I’ll make my exit.  Maybe, it’ll take a few days or weeks for its revival.  I am willing to wait it out instead of panicking like I did back in June 29th.  I shall take my profits this time instead of selling at loss.

Thou Shalt Not Listen to Others

15 Jul

No. 1 Rule:  Thou Shalt Not Listen to Others

Do what’s best for you!  Do not always follow the herd or else they’ll trample on you. 

Greed is my fault.  I got caught up in a hot penny stock.  It doubled in a matter of a few days when I bought into it.  I thought it’ll shoot up even more, but that’s not the case.  After the initial craze, the stock died down and it started to fall… it fell fast!  I didn’t pull the trigger when I had the chance.  I missed out on my 100% gain.  Now I am stuck with a 65% loss.  It’s okay as it was my first crazy loss.  Of course, I’m not that stupid… I only used $639.99 of my own money.  Essentially, I didn’t put my life savings into a crazy penny stock 🙂

Safety is my fault.  I sold out half of my position at a gain of 133% taking back all of my initial investment plus a tiny profit.  The other half of this hot penny stock went on to be a 6x bagger for me.  Instead of holding all the shares, I’ve lost out on the potential profit I could have had.  If I only knew… 😦

A direct comment from one of the fellow forumer at my posting in Agoracom:
Shoulda, coulda, woulda…. There is always another place in the market where you could have made more money, not suffered a loss, etc. etc. Important thing to remember is that it is a continuum. In the end it is all one stock. They all go through winning and losing phases. You could have chosen another stock and your timing may have left you just the same…. it’s not really about the stock… it’s about you….. and the decisions you make.

Nail Biting

14 Jul

Lately, I’ve been biting/picking at my nails again.  Why am I so anxious about?  Is it making the wrong moves again in the slippery edge of the markets?  Or am I afraid of putting myself in the position of owing more money in margin? 

If I had not been so afraid of my huge $20K in margin at once… I would have made off better today than two weeks ago!  I am totally hitting myself over it now.  I should have stuck to my guns and let the dust settle down before I make my move.  Why do I always sell the good stocks and hold onto losers? 

I hate you FSYS!  I shall cut you off soon, end of this month.  Let’s see if you can redeem yourself end of this month!  That’s all I’m holding out for you!

Questrade Cash Margin Account

12 Jul

I’ve been a client of Questrade since Oct 2009 for RSP and TFSA.  Since I had Scotia Itrade for my cash margin account, I didn’t want to spread my money too far out.  But with each trade at $19.99, it’s starting to weigh down on me.  I finally decided to opened a cash margin account with Questrade to cut trading costs as much as possible.  This account will purely be take a profit basis. 

Starting with $5000, my goal is to grow this tiny account to $7500 on swing trading by the end of this year.

So far, I have only deposited $3750.  It’s still short $1250 as I don’t have enough money right now to fund it.  I’m on my way.  I bought BMO at $5754.95 ($2004.95 is on margin).  I am up $262.05, 4.55%.