Impatience

2 Apr

My impatience on a upcoming stock CRUS cost me $260.85 in a loss.  I averaged down on CRUS the day before I sold it.  I had enough margin to buy AAPL, but I didn’t want to over extend myself.  So I took the bullet and sold CRUS.  If I had kept CRUS, my loss would have diminished by today.

By averaging down on TCK.B, I have a paper gain of $704.10.  I suppose this makes up for my loss, however, this gain is not realized.  A gain is not a gain till you have realized it. 

Commentary of my overall portfolio:

Overall, I traded seven times in the month to inject new life to my portfolio. 

1)  Starbucks broke through 200% gain!  I don’t need to worry about them at all.
2)  Boston Pizza has been climbing steadily in the past few months.  I think it will break through 100% gain!
3)  Great Quest Metal has lost its momentum in the past month.  Dropping a buck means a good value drop in my portfolio.
4)  ING Streetwise Growth Fund is the most boring.  Mainly due to the fact that it’s not a stock!  I used to contribute monthly to this RRSP fund, but it has not been impressive at all for the last while.
5)  BMO has been disspointing to me.  I’ve collected a few quarterly dividends, but their shares seems stagnant.  I had Royal Bank at the lower end before, if I had kept that instead, I’d be swimming in a sea of money!
6)  Just Energy Corporation has rebounded and has giving me a monthly gift of $62.00.  I averaged down two times with huges losses at hand.  I was patient with this one and has worked out to my advantage.
7)  Potash Corporation has given me a big heart ache.  I invested a lot into this stock and too much time into this dead beat stock.  I eventually came out with a loss of $319.80, but kept 100 shares in my RRSP for sentimental reasons.
8)  Keg Royalties Income Fund is a little gem I’ve bought when they were slumping.  Long ago, I was weighing in if I should buy Keg vs Boston Pizza.  Of course, Boston pizza wins to date.  However, it’s nice to add Keg to my portfolio as it gives me $8/month.
9)  Mastercard was a problem child at the beginning, but it has made a big turnaround.  I’m keeping this baby till it fully matures. 
10)  Inter Pipeline Fund is rescilient.  I’ve sold out a couple of times.  Mainly, I grew tired of playing it safe. When it comes down to it, it has slowly but steadily climbing up in price appreciation.
11)  TCK.B is a new stock for me.  I had a good gain in the first two days, but it started on a downward spiral.  I averaged down putting myself more into the red.  It has climbed its way out of the hole and giving me a bang for my buck!
12)  TransCanada Corp is a stock I bought due to a friend’s advice.  Let’s see if they are right.  But this is a good solid investment with good quarterly dividends.  I’ll sell when it reaches $60!!
13)  Chemtrade Logistics has been losing its momentum after the distribution.  Am I worried?  Yes!!  I have like 1090 shares at stake.  I need to forget about this stock and ride it out!
14)  Apple is a chance for me to redeem myself.  I’ve watched Apple and blogged about Apple earlier in this year.  Day after day, it has climb into its new 52 week high.  Maybe I got on the flight a little late, but I sure hope there’s plenty of room to make it go up towards $700!. 

March Trades Margin

-190.78

TFSA

-99.90

RRSP

-87.72

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5 Responses to “Impatience”

  1. Alex April 3, 2012 at 2.33 #

    nice one on starbucks! 🙂
    i havent done much lately. been thinking of selling some stuff though!

  2. agentfang April 3, 2012 at 2.33 #

    I was reading Jim Cramer’s section on when to sell your stock. You’re not really making a profit unless you sell!! So all these paper profits is meaningless unless you start realizing them!

    His advise on stocks that you think are going to go up… maybe sell shares to bring you back to the original investment amount. If you think your stock has no recovery, then time to cut your losses and move on.

    My way of thinking has always been stick it out. I have a hard time letting go of stuff that has been treating me well 🙂

  3. Alex April 3, 2012 at 2.33 #

    yea, im still trying to figure out what im comfortable with in terms of selling guidelines.

    my first investing book was actually the intelligent investor by ben graham, which drilled into me i should only sell if i feel the security is overvalued and if the new security i will purchase presents a better opportunity plus margin of error. but in the interest of risk management, sometimes I do take profits off the table similar to Cramer’s idea (its just a form of rebalancing). but in some other cases i havent been too good about it…

    one strategy i read about is the 5/25 rule, which says you should rebalance (sell the profits) when the equity either gains 25%, or increases its percentage of your portfolio by more than 5%

    ie: if a stock starts at 10% of your portfolio, you would rebalance if the position gains by 25%, or becomes more than 15% of your portfolio, whichever comes first, and bring it back to 10% of portfolio.

    for small positions the 25% gain will always come first. for positions larger than 20% of your portfolio, the 5% rule will occur first. feel free to give it a try if you are interested 🙂

  4. agentfang April 4, 2012 at 2.33 #

    Then you’re saying I should really sell off my SBUX, BPF.UN, GQ? GQ was a fine example of taking some off the table… now it’s half its value from its high recently.

    These are my longest holdings… and have played out well for me. I only sell stocks that doesn’t offer me much profitability anymore. I do re-evaluate them often.

    I realize that if you have a profit… best to sell it before it gets wiped out. Happens to me very often… latest victim was TCK.B. I had a good gain of $700, instead of selling… I kept it. Now it’s half of that. My option in CLF isn’t working out as good as I had hoped! Darn it, a few mistakes here and there are costly. I’m freaking out on CHE.UN now… but I need to stay calm.

  5. Alex April 5, 2012 at 2.33 #

    not saying to sell them, just that is something that works for some people. it varies from person to person and depends on their comfort level. also depends on what kind of investment (defensive, or spec).

    if it were me i’d sell an amount equal to your cost basis, and let the rest run. that way you are playing with the house’s money (another cramer phrase lol).

    either way, way to go on those profits! i’ve never made that much in any of my investments yet lol. the best i’ve done is buying BNS at 26 in Feb 2009, and buying JPM at 29 in Oct 2011.

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