Aug 192013
 

Earlier in the Spring I blogged about how undervalued commodity stocks were and hinted that it could be one of the best trading opportunities of the year 🙂 So I explained how I invested $2,000 into some stocks and plan to sell when I can make at least $1,000 in profit. Well earlier today I sold all those stocks, and made a $1,175 return, exceeding my goal (゜∀゜)dancing-tweetie-bird

April 19th 2013
Initial Investment: $2,000
Bought: 50 shares of  G.TO at $28.84 = $1442
Bought: 100 shares of  SLW.TO at $24.16 = $2416
Bought: 100 shares of  SU.TO at $28.205 = $2820.50
Total money spent buying stocks: $6,678.50
Had to borrow $4,678.50 on margin

Today, Monday, Aug 19th, 2013
Sold: 50 shares of  G.TO at $32.51$1625.50
Sold: 100 shares of  SLW.TO at $27.80$2780
Sold: 100 shares of  SU.TO at $35.325 = $3532.50
Total money acquired from selling stocks: $7,938
Dividends earned during swing trade period: $42

Gross profit: = $1,301.50

Expenses:
Commission: 6 trades x $9.99 = $59.94
Interest on $4,678.50 margin loan @4.25%/yr = $66.28
Total Expenses: $126.22

Net profit = Gross Profit – Expenses = $1,175.28 (59% return)

Another successful swing trade is in the can 😎 Woohoo! That was a fun one 😀 Let’s analyze… Continue reading »

Aug 152013
 

Earlier this year in April I started a swing trade which included some Suncor stocks. I mentioned how it was an undervalued company and how the stock will likely make a comeback 🙂 So I bought 100 shares at $28 each. Well I just heard on the news that Warren Buffett also bought some Suncor shares for his holding company Berkshire Hathaway 🙂 Hey, maybe… just MAYBE.. he reads my blog and that’s what gave him the idea to invest in Suncor as well (^_-) Hi Warren 🙂 I’m a big fan!

Buffett had picked up 17,800,000 shares of Suncor 😯 When the oracle of Omaha is confident enough to put over $500 million into a company, you know it’s a good investment 😎 Right now Suncor is the only Canadian holding inside Birkshire. Yay, go oil sands!  Represent Canada! I”m not sure what price Buffett paid for his SU shares, but I managed to get mine around when the stock bottomed, so this could mean I’m a better investor than Warren Buffett 😆 Or I just got lucky I suppose. But now I’m faced with a dilemma. I was planning to sell my swing trade when I made $1,000 from it, which I have now. The stock climbed to $35/share today. But now that the world knows Suncor is in Berkshire Hathaway’s portfolio there may be increased global interest in this company. Selling when Warren Buffett is buying may not be smart 😕13_08_suncorchart

Eventually though I will have to sell and most likely make a nice profit from it. But one drawback of making money through any kind of investing is those darn taxes on dividends, interest, etc (>.<) Here’s a simple tip to save butt-loads on investment taxes. Before you invest, give the money to someone else in a lower tax bracket whom you trust, and invest the money under his or her name instead of yours 😀 Continue reading »

Jan 052013
 

Lower Unemployment
Last year ended very positive for the Canadian job market.  In December we hired 40,000 new workers and the unemployment rate dropped to 7.1%, it’s lowest point in four years! This number affects both confidence in the stock market, and housing prices.  Hope we can continue helping our unemployed and under-employed friends in 2013 and get the number even lower.

13_01_employment

 

Precious Black Gold
The oil industry made a big announcement this week and it’s going to benefit Canadians! A group of companies including Suncor, Chevron, and Exxon Mobil, have said they will start a major offshore project in the Hebron Oil Field, near St. John’s Newfoundland and Labrador. This project will create thousands of jobs which won’t just help those employed in the oil and gas industry, but also the local economy in NL  and other nearby provinces. Not only that but the provincial government will also likely be getting some sort of royalty (~_~) from this new project. This is much needed news for people on the east coast as Newfoundland and Labrador’s unemployment rate is 11.5%, the highest in the country!

13_01_hebron_oil_xom

The companies lead by Exxon plan to spend $14 billion extracting the oil but costs could go up higher. There’s an estimated 700 million barrels of oil in this field. At today’s oil prices if they manage to drill up all the oil they can sell it for $63 billion. Pretty good deal for them.  How can the average person benefit from this new announcement? A few ways. 1) Invest in local companies in St. John’s 2) Invest in oil companies  3) Learn skills to work on offshore oil rigs.

disclaimer: I’m a shareholder of Exxon Mobil, Chevron, and Suncor stocks. In the last week all 3 stocks have gone up in price! I also have Trican and Halliburton stocks. They are oil services companies and provide equipment and expertise to help energy companies actually drill the oil out of the ground from hard to reach areas, such as offshore 😀 This is why I love investing. Large multinational energy giants love to make money and are really good at doing it. Anyone can invest in them today and benefit from their profits in the future :0) Readers, if you don’t already own some oil companies what are you waiting for?

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Sep 132012
 

A few months ago I wrote an article about how oversold stocks have become so I started a swing trade with two of my favorite companies, Suncor and Silver Wheaton. Well if you follow me on the Twitter you may have seen my tweet earlier today when I sold both my holdings and made a 34% gain. Mission complete. This swing trade was a success.

When I first purchased these stocks I received a lot of positive feedback from readers…
“That’s awesome that you’re confident enough in your investing to take out a loan from the bank. ” ~Jeremy
“Awesome !!! Your $1000 is a coming :D” ~Amanda
“Very solid buys!” ~PC

Wow, with that kind of support how can this swing trade possibly go wrong? (^_~) Okay, details below.

Wed, Jun 6th, 2012. (my original post here)
Initial Investment: $3,000, from savings.
Leveraged up to $5,810 by borrowing the extra $2810 from TD bank on a line of credit at 5.25% interest rate.
Bought: 100 shares of  (SU.TO) at $29.02 = $2,902
Bought: 100 shares of  (SLW.TO) at $29.08 = $2,908
Total money spent buying stocks: $5810

Today, Thurs, Sept 13, 2012.
Sold: 100 shares of (SU.TO) at $32.93 = $3293
Sold: 100 shares of (SLW.TO) at $36.23= $3623
Total money earned from selling stocks: $6916

Difference: $1106

Expenses:
Interest on borrowed money: -$39.20
Commission: 4 trades x $9.99 = -$39.96

Net profit after expenses: $1026.84 (before taxes)

So after paying back the loan on my line of credit, and all associated costs I’m left with about $4027. Considering that I started with $3000 of my own money, a 34% return on investment isn’t too shabby. I could’ve made more money if I sold later in the day but when I started this swing trade I stated very clear that my goal was to make $1000. I’ve reached it and I’m happy with my results. I can’t lose money by making a profit after all.  I was too greedy in my previous swing trade (round 3) and held on too long >_< Not making that mistake again this time lol.

This strategy of buying high quality, industry leading, large capitalization stocks when markets are depressed, and then selling them when they go back up has worked for me 3 out of 3 times so far, maybe it’s beginner’s luck? Using leverage has also helped because for every 1 percent increase in the share price, my investment returns almost 2 percent :0)  My other strategy of timing the volatility index on the other hand, is failing miserably haha. But now I’m a better investor because I know what works for me, and what doesn’t.

Disclaimer: I’m not a professional anything. Trading stocks is very risky and I could’ve easily lost all my money had I been unlucky or something.

Jun 062012
 

The market is very over sold right now. Time for another swing trade :0) I know my other one is still ongoing and I’m losing some paper money on it but this time I’m certain I can make an easy $1,000 or more with a >80% certainty. This is the buying opportunity of the year. I don’t want to miss it.  I haven’t bought any stocks in awhile so I had quite a bit of savings. Earlier today I decided to buy 2 great companies and plunked down $3,000. But to make it more interesting, I’ve also borrowed about $2,810 more from the bank to buy even more stocks. Go big or go home I say.

Initial Investment: $3,000.
Leveraged up to $$5,810.

Suncor Energy Inc. (SU.TO)
Bought: $29.02 x 100 shares = $2,902

Silver Wheaton Corp. (SLW.TO)
Bought: $29.08 x 100 shares = $2,908

I didn’t buy them at their lowest point today but we’ll see what happens. My strategy is simple. Sell both stocks once I make $1,000 total. Or BUY MORE if falling oil and silver prices drag down commodity stocks lower by 10% or more. I can lower my average cost of buying and make a profit later on.