Stock Picking - Straight Gambling

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mrquincy
Done Matty... tdb966, tdb908, tdb911, tdb900; 25% each.
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Upon further investigation, I should not have bought TDB900 as I already have lots of those in my registered RRSP... I will leave it for a few months and re-allocate it.
 
Gave in to the gamboling gods and bought 66 shares of HOD (2x Crude Oil Bear ETF). Hoping to see crude go down to $35 or so within the next couple months. That would net me around $450.

I'm a bad, bad man.
 
Assuming you have a $7 transaction fee on each end (buying and selling) you're entering the trade %1.83 in the red. I wouldn't look to short term trade anything for less than 5k notional (approx %1/4). But i guess that's why you call it gambling.


Transaction Costs
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(# of Shares) X (Price Per Share)


Then again if you wanna gamble you should apply for an options account...
 
Yah, fully aware that I'm in the red until I get significant movement. I'm gamboling that oil reserves will stay high over the next coupla months. They're still trending up as of yesterday's report.

Isn't trading bull & bear ETFs the same as trading options, only with straight cash?
 
Cool. FWIW I agree with the underlying pick/logic. I think reserves will continue to grow as production continues to be blinded to it's own cannibalization.

As I mentioned yesterday, those 2x/3x instruments settle very differently from other funds and operate completely differently than options. Though the delta component of options pricing is similar. They both employ leverage, the etf's @ 2-3x and options @10x. I guess in this regard they are similar, with options being like the crack to the levered ETF's cocaine.
 
Matty
Gave in to the gamboling gods and bought 66 shares of HOD (2x Crude Oil Bear ETF).
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This is in the money already. Bought at 11.09, currently 11.80, up $46.86. Net profit after commissions would be $26.88.

:cripwalk:
 
Sold at $12.25 - $56.58 profit after commissions.

I woulda held on to them but everyone on the Interwebs is saying you should close your position within the same day.

Will keep tracking that thing.
 
Just opened a Questrade account. ETFs are free to buy and $6 to sell. That's a shitton better than TD.
 
I'm sorry but I haven't been following this thread that closely. Are you day trading Matty? Looks like you bought and sold something pretty quickly. Do you have short term capital gains tax in Canada?
 
Just getting my feet wet IAG. I bought something expecting to hold it for a couple months but Boner and a bunch of people on the Interwebs tried to explain to me why holding that specific investment for more than a day was a bad idea. I'm still not sure I get it but when I saw that I could get out with a small profit, I jumped on it.

I'm investing under a Tax-Free Savings Account (TFSA) which is entirely tax-sheltered, both for capital gains and withdrawals. Sounds crazy, but you can't contribute more than ~$36k to that account right now. The limit is upped by $5k every year. (Any capital gains add to your contribution room, so someone who somehow made a million dollorz in capital gains in his TFSA could withdraw the million tax-free, then re-contribute the same amount next year and resume gamboling.

The genius of TFSAs did not hit me until very recently.

Canada will probably yank the program in the not-so-distant future, but for now it's free-for-all.
 
Good trade. In Canada do you have limits on trading with unsettled funds? For example the proceeds from such a trade wouldn't settle for 2-3 business days and while you can buy something with them you cannot then close that new position until the funds settle (or if you have margin - a fancy word for credit you're charged interest on that 1-3 day loan).
 
Wait... are the monies deposited pre-tax? Like directly from a paycheck? If they aren't it's not SUCH a great deal.. tho a good deal for sure.
 
Boner_18
Good trade. In Canada do you have limits on trading with unsettled funds?
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Excellent question. I can see that today's trades don't settle before Monday, but TD allowed me to re-use the entire cash proceeds to place an after-hours order for more index funds. Maybe the order won't go through tomorrow.

:dunno:
 
Boner_18
Wait... are the monies deposited pre-tax? Like directly from a paycheck? If they aren't it's not SUCH a great deal.. tho a good deal for sure.
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After tax.
 
Boner_18
Good trade. In Canada do you have limits on trading with unsettled funds? For example the proceeds from such a trade wouldn't settle for 2-3 business days and while you can buy something with them you cannot then close that new position until the funds settle (or if you have margin - a fancy word for credit you're charged interest on that 1-3 day loan).
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Good God. The phrase "Margin Call" is now in my head, and just brought back a flood of bad memories circa 2008 that I had managed to block out until just now. TD Ameritrade was worse than WW in extending credit to people who have no business having it...at least in my case. They are always protected..you aren't. I'm sure it's fine if you actually know what you are doing.

I think you have to apply for a margin account. It's like credit from a bookie....but if your stocks go under a certain amount, you are required to make a deposit or else sell your position.
 
I declined both margin and options trading. #smarts #knowthyself

I shall read more about inverse and leveraged ETFs tonight.
 
Matty
I declined both margin and options trading. #smarts #knowthyself

I shall read more about inverse and leveraged ETFs tonight.
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Wise move Matty...wise move.
 
wtf are you guys even talking about
 
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