Tag Archives: Margin

Virtual Brokers in Review

24 Dec

May 2013, I switched over my margin account from Questrade to Virtual Brokers for cheaper commissions, lower margin rates and depth II quotes.  I am very happy with this move!  If I was stuck at Questrade, I wouldn’t have traded or gained this much!  Too bad, Virtual Brokers charges a fee for USD stocks held in TFSA and RRSP accounts… or else, I would have moved everything over from Questrade.

Summary Breakdown

* Market Value as of Dec 24, 2013:  $68,349.93
* Current margin amount:  ($9,902.22 )
* Net Equity:  $58,447.71
* Paper profit:  $16,347.71
* Currently holding 12 stocks
* Collected in distributions and dividends:  $780.49 
* Margin interest charges: ($181.24)
* Commission charges for 32 trades:  ($40.86)  

Note:  If I traded 32 times in Questrade at their minimum cost of $4.95, the total commission charges would have been $158.40!   

 

Virtual Broker – Margin Review on my Portfolio

5 Sep

Margin gives you the ability to buy stocks on borrowed money from the brokerage.  The more money you invest in a stock, your risk becomes greater as well.  It can be for the better or worse, but you really need to access how much you are willing to put down or stomach.  *Always be careful when borrowing money.*  

Presently, I have a margin account with Virtual Brokers.   The current rates at Virtual Brokers is 4.5% for CAD and 4.75% for USD.  Margin rates are usually competitive, since they have collateral to the amount of cash you have in the account with them.

Last month, I sold my Goldcorp stock.  So at the moment, I have $4,470.37 cash sitting in my CAD account.  I still don’t know what to buy on the Canadian side.

I also added a few American stocks to my portfolio on margin, but they haven’t been performing as well as I had hoped for.  At the moment, Currently, I have $8,384.51 margin in my USD account.  I am hoping Coke will make a turnaround soon, so I can lessen my margin load.

Current Value for USD Stocks on Margin:

Coke (KO)

2,075.99 1,912.00 -163.99 -7.90%

Visa (V)

$4,152.49 $4,052.83 -$99.66 -2.40%

Costco (COST)

2,240.99 2,292.40 +51.41 +2.29%

Anyways, I have been lazy and not really keep track of my overall stock portfolio.  Time for me to sit down one night and make a good tracking system for all my purchases and sales of stocks for 2013.

It’s been one month!

4 Jul

One whole month, I have held COCA-COLA CO (KO:NYSE) on margin.  I haven’t been able to sell my swing trade yet because it hasn’t gone above my buy in price of $41.50 per share.  I am currently sitting on an unrealized loss of $51.49.

July 1st, I was surprised to find a gift from KO sitting in my brokerage account:  $11.90 in dividends!

As for my other swing trades in June, I profited $140.98.  I was able to execute buy/sell for four stocks.

  1. Jun 4-14, 2013:  KRFT- buy 50 @ $54.30 | sell 50 @ $55.61
  2. Jun 4-14, 2013:  MA- buy 5 @ $569 | sell 5 @ $572.10
  3. Jun 11-27, 2013:  DOL.TO- buy 25 @ $72.71 | sell 25 @ $74.11
  4. Jun 25-26, 2013:  CVX- buy 25 @ $117.30 | sell 25 @ $118.22

In all honesty, if I was patient with some of the stocks, I would have even greater profits.  But a profit is better than no profits, right?

Prices of the four swing trade stocks as of July 4th:

  1. KRFT:  $55.51 (-0.10 x 50= $5.00 extra loss)
  2. MA:  $586.12 (+14.02 x 5= $70.10 extra profit)
  3. DOL.TO: $74.63 (+0.52 x 25= $13.00 extra profit)
  4. CVX: $119.08 (+0.86 x 25= $21.50 extra profit)

I didn’t want to hold these stocks for too long as I bought them on margin charging at a rate of 4% per annum.  The longer I hold the stocks, the more interest I would have to pay.  Quick profits on margin are optimal at best.

Currently, I have BTE.TO (since May 9th, slowly, I am climbing out of the red on this one) and KO on margin a total of $10025.99.

May’s interest, I had to pay $15.92 CAD and $3.19 USD.  June’s interest will show in the middle of July 2013.  Let’s see how much interest will dig into my $140.98 in profits for the month of June.

Pumping up my Margin account

25 Mar

I’m tired of paying 6% on my Questrade Margin account, so I am transferring $7569.86 over to bring my CAD balance to zero.  I still have a balance of $1938.09 USD which I am going to leave as the Canadian dollar hasn’t been strong lately.  Don’t want to pay extra conversion rates.

I think I am going to take a break from trading in my account unless I see an opportunity to jump in or out.

Hooked, Lined, and Sinkered

20 Apr

Wiggle wiggle!

I’m chasing Apple the wrong way!!  This morning, Apple seemed to be performing well heading above my latest buy in price of $587.00.  By mid-morning, it started its downward spiral AGAIN.  I had some money in my QT RRSP account screaming for some attention.  I decided to averaged down another 10 shares @ $581.00 in the morning which is a big mistake.  I was careless and impatient.. hooked, lined and sinkered!

One of my mottos is not to buy in the morning, always buy in the afternoon when things have settled down. 

Today Apple closed at $572.98/share.  It was another $8.02/share drop from my buy in price.  Am I worried?  Nah, I’ll just sleep on this shares for a long time coming since it’s in my RRSP account.

As for my other 30 shares of Apple in my QT Margin account, I got an email from Questrade stating:

“Please be advised that the margin rate on common shares of Apple Inc. (AAPL) is increasing from 30% to 40% effective Monday, April 23rd, 2012. Please review your current positions to ensure that your account does not enter a margin deficiency due to this change.

It is your responsibility to monitor your account and your margin, and to deposit sufficient funds or sell sufficient positions to remain in good standing. If your account becomes under-margined, we will issue a margin call and may sell securities to satisfy the shortage.

We retain the right to require additional margin at any time we consider necessary. “

I just might get a margin call on my Apple shares if the price keeps on falling like today.  I am hoping for a green Monday.  Wish me luck! 

 

My Total Debt

13 Sep

My main focus is to reduce the debt with the highest interest charged.  A big balance at RBC Visa with a promotional rate of 0.00% is coming to an end.  I need to re-arrange my credit or sell some stocks to avoid the hefty 19.99% per annum once it expires.  A total of $27,146.51 is the debt I have accumulated since the beginning of 2010.  The following is the stack of my current debt outlined:

Line of Credit
BMO Mastercard  $1745.15 @5.75%

Margin: 
Scotia Itrade  $6311.10 @ 4.25% 
Questrade  $2676.77 @ 4.25%

Credit Card PROMO: 
Visa RBC  $11,970 @ 0.00% expires Nov 11,2010 
Visa RBC  $500 @ 0.00% expires Jan 31, 2011
MBNA Smart Cash  $1000 @ 0.99% expires Aug 2011
MBNA Smart Cash  $1000 @ 0.99% expires Sept 17, 2011
MBNA Gold $1943.49 @ 0.00% expires Mar 2011