Fiddling about with stocks, funds, etc. No conspiracy theories, please.

588 posts in this topic

20 minutes ago, Tim Hortons Man said:

Most investors lose money in the stock market and it's the reason why people like @Starshollow is smart to recommend low cost ETFs

 

I have a little bit of everything including ETF's and funds. Everyone I know personally who has been serious about investing for many years have not lost. My mom taught me about it as I watched her peruse the WSJ every day since I was a kid. She out earned my dad who had a very successful commercial construction business.  Her mantra was always "Don't work for your money. Let your money work for you." 

 

I do know a few people who invested and ran away when the going got rough and lost money. It takes some nerves to hang in.

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My feelings exactly, @fraufruit . The stock market is for the long term and it takes nerves to hang on. I needed all the nerves I could muster as I watched my life savings become nearly worthless during the financial crisis of 2007. I just kept everything and watched it grow handsomely in the subsequent years. It's important to keep a cool head and always act rationally, keeping in mind that share prices go up in the long term, and that one needs to diversify. Never sell as a result of a panic reaction; sell to realize capital gains or to dispose of stocks for which there's little hope of recovery.

 

Stocks are a very risky investment if you anticipate having to liquidate within a few years (such as when you are approaching retirement, or planning to buy a property) because if there's a market crash you won't have the luxury of being able to wait until the market recovers, and will have to swallow your loses.

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11 minutes ago, Smaug said:

Stocks are a very risky investment if you anticipate having to liquidate within a few years (such as when you are approaching retirement, or planning to buy a property) because if there's a market crash you won't have the luxury of being able to wait until the market recovers, and will have to swallow your loses.

 

We have approached retirement but we've kept plenty of cash so we won't have to "liquidate" any time soon. Cash is a very important part of one's portfolio. I think it's underrated. As tempting as it is to invest it and earn, it doesn't go down when the market does. 

 

As for buying a property, as long as mortgage interest rates are much lower than my investment earnings, I'd go for a mortgage and let my money keep on earning. Perhaps even borrow from myself. That's what most businesses and property developers do. Of course, I'm a little long in the tooth for that now.

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4 hours ago, fraufruit said:

 

I have a little bit of everything including ETF's and funds. Everyone I know personally who has been serious about investing for many years have not lost. My mom taught me about it as I watched her peruse the WSJ every day since I was a kid. She out earned my dad who had a very successful commercial construction business.  Her mantra was always "Don't work for your money. Let your money work for you." 

 

I do know a few people who invested and ran away when the going got rough and lost money. It takes some nerves to hang in.

That doesn't surprise me, it's a well known fact that women make better investors than men. My wife often says she's very risk adverse, a good counter balance to me. In my Rurup my funds are as follows. 25% Bond Fund, 25% European stock fund, 25% US (S&P I think) and 25% emerging markets, simple and boring. I know this goes against conventional wisdom but the rest of our investments (outside of real estate) are in Canadian stocks. I've debated expanding my horizons but I enjoy the challenge of finding trading stocks and I know the CDN market quite well. The US market is 10 times the size and I wouldn't even know where to begin! All of my investments are in REIT style stocks. The yields at 7% plus are simply too good to turn down. The main issue is volatility. ENF (Enbridge Income Fund) for example is down 25%. Usually a high yield is a warning sign of a dividend cut but in this case, as far as I can tell, it's just a correction. 

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3 minutes ago, Tim Hortons Man said:

That doesn't surprise me, it's a well known fact that women make better investors than men. My wife often says she's very risk adverse, a good counter balance to me.

 

I take calculated risks, I am well known for it but that is what I was paid to do in a previous life,

It is rather different when it is your own money, rather than someone elses. I was a far more  risk adverse back then.

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16 minutes ago, Tim Hortons Man said:

of my investments are in REIT style stocks

Canadian REITs? Isn´t there a 30% withholding tax on Canadian REITs?

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30 minutes ago, jeba said:

Canadian REITs? Isn´t there a 30% withholding tax on Canadian REITs?

At the moment they're in an RRSP, my understanding is there is no withholding tax.

 

For shares outside of my RRSP there's a 15% withholding tax. It might be 25% never actually calculated it. 

 

Edit: the only issue  I have ever had with TD is my phone number they can’t seem to enter a German phone number so I use  my mother-in-law’s number and perhaps once a year I’ll get an email saying The bank called

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I was into some REIT's some years ago and they did well and I got out just in time. They can be volatile. I have asked my broker about them since then but he says for my strategy, they are a no go.

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8 hours ago, fraufruit said:

I was into some REIT's some years ago and they did well and I got out just in time. They can be volatile. I have asked my broker about them since then but he says for my strategy, they are a no go.

What should be wrong with REITs unless there are special tax considerations? I like them because they usually have high yields as they are required to pay out at least 90 % of their earnings as dividends and aren´t taxed themselves at the corporate level. In a zero interest environment many people (like myself) are depending on dividend income for retirement and REITs are one of the less unreliabale providers of that.

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Hiya folks,

 

Like @theGman, I am very new to investing as well. I have a few mutual funds in the States, but would like to give stocks a go. I plan on being in this for the long haul as I am quite a ways from retirement. 

Anyway, thanks for starting this thread @FrauFruit and also thank you to everyone who has contributed thus far. 

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Well, jeba, maybe I'll have a chat with my broker about REIT's these days and if I need a few in my portfolio. The thing is, I've been doing my long term investing for the last 35 years or so. You know I love my cash, too.

 

Hey Wino, where are you from in the states? I'm from SC.

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On 2/18/2018, 2:14:39, Smaug said:

My feelings exactly, @fraufruit . The stock market is for the long term and it takes nerves to hang on.

 

The stock market is completely manipulated. The only reason stocks are doing so well is that the Central Banks and printing money effectively known as Quantitative Easing.

 

When the manipulation stops then we should see a true reflection of the stock market.

 

 

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6 minutes ago, RenegadeFurther said:

 

The stock market is completely manipulated. The only reason stocks are doing so well is that the Central Banks and printing money effectively known as Quantitative Easing.

 

When the manipulation stops then we should see a true reflection of the stock market.

 

 

 

 

With you on that Ren:

 

http://www.alt-market.com/articles/3378-central-banks-will-let-the-next-crash-happen

 

QE is heroin for economies. Nothing of value is produced.

 

And another reason to move to sound money:

 

http://www.alt-market.com/articles/3374-the-dollar-from-bohemia-to-bust

 

Quote

Virtually no investor studies history and the few who do always think it is different today. The most important lesson is that people never learn. If they did, they wouldn’t be invested in a stock market that on any criteria is now at a bubble extreme. And they wouldn’t be invested in a global debt market which has grown exponentially in recent decades and which will become worthless in the next few years as debtors default. Nor would anyone hold paper money which is down 97-99% in the last 100 years and which is guaranteed to soon fall the final bit to take the value to zero.

 

 

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13 hours ago, fraufruit said:

maybe I'll have a chat with my broker about REIT's these days and if I need a few in my portfolio

If you go that route it may be a good idea to have a look at some recommendations from Brad Thomas at seekingalpha.com. He is a Forbes newsletter writer specialising on REITs and you have to pay for his recommendations. But his articles on seekingalpha are for free and sometimes they are just excerpts from his newsletter published with a few weeks delay.

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On 16.2.2018, 12:19:16, LeCheese said:

I have been shorting Norwegian ( airline )  since Wednesday ( or at least my broker has for me. )

They had a pretty crappy 4th Quarter result announced yesterday

Currently down to 177NOK

They will probably drop a touch further but I  am now out

 

A tidy profit ;)

 

 

 

Buying back in today on average so far 174 NOK  Time for another punt I think.( hope :D)

 

Edit. Smaller punts on Golden Ocean Group & Marine harvest  @ 73 & 151 NOK

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Recently I've started day trading. It started as a dividend capture strategy and quickly moved on to day trading. I choose ENF Enbridge Income Fund as it's a stock I'm willing to hold long term, so it doesn't work out no biggie. Anyways I do two things. I buy it a few days before the ex-dividend date and hold for a few days after. This in order to get the dividend. 

 

Than I buy and sell each day looking for a trading profit of between 5 and 10 cents a share. My goal is to catch it just as it changes direction. Today was a typical example. First 2 hours of trading It dropped 50 cents and from there it went sideways. Now at this point trading is about instinct. Will it bounce off support or will it break it. I got in at 27.29 (circle) with the expectation it would bounce by the end of the day. General rule of thumb is I want close out each trading day. So with the trading day winding down I decide close out with a break even trade. Moments after putting in the trade it bounced (arrow)

 

Oh well can't win them all, back again tomorrow!

 

 

Capture.PNG

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Interesting, Tim Horton. I've never heard of anyone trading like that. So are you up or down at this point? How much is the dividend?

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8 hours ago, fraufruit said:

Interesting, Tim Horton. I've never heard of anyone trading like that. So are you up or down at this point? How much is the dividend?

Day trading was quite popular a few years back it's hard to make money long term. That's the whole reason I choose a dividend stock as long as I'm making money and it's fun I'll keep trading.  the main problem is you need to be able to keep an eye on the market, I'm out tonight so I may not end up trading today. Oh to answer your question, of 10 trades since Jan I've 7 profitable, 2 break even and 1 loss. I won't know for another 6 months or so if it was just luck or I'm actually on to something.

 

Edit: today is a good example you face as a day trader. since Jan the stock has mostly opened lower than gone sideways giving you a basis for trading. Today it's opened up like a rocket, up nearly 50 cents. Buyers will tap out at some point but what I don't know if it will fall back to earth or not. 

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On 20.2.2018, 09:28:35, LeCheese said:

Buying back in today on average so far 174 NOK  Time for another punt I think.( hope :D)

 

Edit. Smaller punts on Golden Ocean Group & Marine harvest  @ 73 & 151 NOK

 

Norwegian up to 179, GoG 73.35, MH 150.

 

Will hang on to Marine Harvest a bit, and have bought into Yara international.

More up than down so cannot complain ;)

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2 hours ago, Tim Hortons Man said:

Day trading was quite popular a few years back it's hard to make money long term.

 

So that's what those day traders were doing. Thanks. 

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