Swing Trade, Round 4: Buy – SU and SLW

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.

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PC
PC
06/06/2012 10:43 am

Very solid buys! SU should be making a nice recovery with the TransCanada Pipeline project getting approved. Too bad, I was busy at work last couple of days to make any buys. I’ve been kinda laying low since all my paper gains have turned red of recent weeks.

Liquid
Admin
06/06/2012 10:57 am
Reply to  PC

Glad you brought up TRP. That’s a solid and growing company as well. Most of my stocks bought last year are losing paper money as well.

Jeremy @ Modest Money
06/06/2012 11:12 am

That’s awesome that you’re confident enough in your investing to take out a loan from the bank. We’ll have to meet up sometime for a crash course in this stuff. I’d love to get active investing in stocks within the next few months. It sounds like you live pretty close too.

Liquid
Admin
06/06/2012 12:08 pm

I’m a beginner investor as well. Will probably mess up a lot in the future. But hoping it’s better to learn from mistakes now rather than later on in life.

Phil
06/06/2012 11:52 am

Out of curiousity, what rate do you borrow money at for your swing trade?

Liquid
Admin
06/06/2012 12:02 pm
Reply to  Phil

Great question. It’s an unsecured line of credit at 5.25%, or more precisely, prime plus 2.25%. Not sure if this rate is good or bad but my bank said this is the lowest they can give me for an unsecured loan. Before I would borrow from my margin account instead because that’s only prime plus 1.25% however I’m running out of margin space in that account and don’t want t risk a margin call.

Phil
06/07/2012 11:53 am
Reply to  Liquid

interesting, so you need at least to make back 5.25% + whatever your taxes will be on gains/divy’s if you are investing outside of a register plan… I now the market seems low, but for what it is worth have a look at where these shares were in the 2008 crisis… My bet is we will see these lows or lower once again before these current issues are through. We are still in for a few more swings in the market. Assume a typical bear market cycle lasts 18-22 years based on history – If we assume then that this mess kind of started in 2000, we still ahve a few more years of sideways to go… Be prepared!

Liquid
Admin
06/07/2012 1:24 pm
Reply to  Phil

And it’s especially risky for resource companies. One of my picks from yesterday just dropped 3.5% today, haha. Should’ve waited (-_-;). This secular bear market is likely to continue before we see any sustainable growth again but I’m planning to buy more if we see the market drop. The 5.25% interest rate is a little annoying though. If we see 2008 lows again then wow what a buying opportunity. Can’t wait to see what’s going to happen.

Bridget
06/07/2012 5:38 pm

ahhh can’t wait until I have some more liquid cash to do this!!

Liquid
Admin
06/07/2012 5:41 pm
Reply to  Bridget

Maybe prices will be even lower when you do.

Amanda
Amanda
06/11/2012 8:22 am

Awesome !!! Your $1000 is a coming 🙂

Liquid
Admin
06/11/2012 8:43 am
Reply to  Amanda

Yay, I’ll let you know when it happens.