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Tuesday, March 1, 2011

Be careful when trading Sprott Physical Silver (PHS.U) in Canadian currency

I did somewhat of a real funny mistake today! I was so happy to be able to sell my 470 units of PHS.U at 15.67$! Especially knowing that the purchase was made at 14.88$ per unit. I had that bus ticket and other expenses I need to pay and I was truly excited about making a 300$+ profit on my sell of today 470 units of PHS.U at 15.67$. The only problem is that my profit was not of 300$+, but of 30$! Why? What happen?

At first, I taught it was TD Waterhouse fault. TD Waterhouse informatics system was down, something happen at the time of the transaction... I had made my sell at 15.67$ for the 470 units, I could see that in my order ticket. But the amount of money that appear in my Activity section was not of 7364.90$ (470 units x 15.67$), but of 7 049.68$. I was missing more than 300$ here! Where the amount went? Is TD Waterhouse stealing my money? What’s going on?

Well, TD Waterhouse did not steal any money from my account. I did a mistake and this mistake is from my own. It’s something I knew about but it never truly cross my mind. Because I had that bus ticket that need to be paid and I WANTED THAT 300 BUCKS!!!

Ok, so here’s what went wrong: When purchasing or selling PHS.U, there’s always something showing up about the currency that need to be check before placing the order. PHS.U is trading in US dollars. I knew that but... this has an effect whenever you decided to sell PHS.U. At this time, the effect is huge, because I could get that 7364.90$. What I been able to make from today PHS.U sell is 7 049.68$. This is just so funny!

Today, I made a 30$ profit out of my PHS.U sell, not 351.30$.

While trading Sprott Physical Silver (PHS.U), always keep in mind, even if PHS.U trade on the TSX side, it’s still in US dollars. This is confusing for the little investor that I am. But I will do better next time. I was told by a TD Waterhouse rep that it’s better to trade Sprott Physical Silver (PHS.U) in US dollars. It help to avoid the kind of crazy situation that I live today.... but just soo hilarious! One of the reasons why PHS.U is doing so well is that it’s trading in US dollars. I guess it could be one of the reasons. However, I am still a Sprott Physical Silver (PHS.U) fan, like to see it gain in value. I had been following PHS.U since November 2010.

I currently hold Sprott Physical Silver (PHS.U) in my TFSA. I am not in a rush to sell, but when PHS.U reached 20$, I will sell. Again... And that time, I will get my HUGE profit!!!!

In conclusion, TD Waterhouse never steal any money from me :)


Frank said...

Take note all you idiots that follow what this girl writes, she's not the sharpest tool in the shed, but she's definitely a tool.

Sunny said...

OHHHHHHHHHHH. My readers are not idiots Mr. Frank. Most of them are expert investors.

This is just a blog about me and my financial just to share what I do and also to make a bit of money online.

My blog is my hobby, without it I would be bored. And without readers like you Frank, well, I would be very very bored.

Be good.

The Dividend Ninja said...

Frank be nice ;)

Anonymous said...


This girl has made some impressive gains in the market. What do you have to show? Be nice!

Sunny said...

Yeah! Be nice Frank. Be nice :)

Rob said...

I happened to stumple on to your site because I own PHS-U. I have some suggestions for your portfolio.

(1) Of your debt, only 30,000 is tax deductible. Pay off the non tax deductible debt by selling investments and reborrow it back to purchase investments.

(2) Canada is in a housing bubble - get rid of the banks and REIT's - sell anything to do with real estate. When interest rates inevitably rise, the banks are dead.

(3) Your allocation of gold and especially silver needs to go way up. Silver is the most dramatically undervalued commodity on the planet. It should be a core part of your portfolio which is never sold for the next 5 years. Sprott is good but I'd recommend HZU comex silver bull which is leveraged 2-1 to the price of silver. Its volatile so be prepared. You will make 500% on this over the next couple of years.

(4) Get a gold stock mutual fund like RBC Global Precious Metals or buy majors like Barrick, Goldcorp and a few speculative juniors like BTO, OSK for example.

(5) Max out your TFSA (it doesn't look like its maxxed) Put the volatile HZU in there but it will get the biggest gains and all will be tax free.

That's my view with a quick look at your portfolio.

Good luck.

Causalien said...

You are admitting mistakes you make. That's good. It means that you are actually doing what you say instead of just preaching and learning from experiences.

You will perform the same action again in the future. But the next time you do it, it will be intentional because you know why it must be done.

Anonymous said...

Your portfolio is way too complicated. Have you calculated your trading fees? Probably extensive. Wondering why more investments are in not registered. Do you not have RRSP room. You're losing out on tax refunds. Yes you get taxed on RRSP's but they're still a great deal for most middle class folks. Also, your exposure is very concentrated. You need to protect against a fall in equities. It is a very dangerous portfolio. Plus most growth will come from developing nations. You could do much better with 4-5 etf's. let me know if you want some info and suggestions.
Dale Roberts

Anonymous said...

I agree with much of what Rob wrote. Quite simply go cbo, xgd, xiu, xma, cbq, cpd with risk level that you are comfortable with. but i'd go 60 bond fund / 40 stocks. we are in for a rough ride as U.S. defaults. shock wave coming.

Dale Roberts

Anonymous said...

Sorry scratch xma. there is potash and agrium and other materials in xiu. no need to complicate and duplicate things.

Dale Roberts

V said...


If you have doubled your money in the past 2 years, you are doing fine. A diverse portfolio is always recommended

Anonymous said...

This message is for the very obviously cuccoled Frank: you sound oh so jealous. Put up your factual portfolio against the Divident Girl, put it on her website or go home where you belong.

Frank said...

Sunny, for the idiots on this website who seem to think that you are making great returns, please can you post your trading history, not just simple statements of assets and debt, but actual trades showing cost basis for investments. Recently you have been doing this, but for past trades, I have no cost basis information.

Check to see if your broker has a feature which calculates your investment returns automatically.

If it does not, then tell us how much new money you've added to your trading account in 2010, and we can calculate your rough returns as compared to the closing balance in 2009.

**She has never been able to say how much her actual returns are because
1) she doesn't even know her returns
2) She doesn't know how to calculate them.

With the games she's playing in her portfolio, she's not even keeping up with the index averages.

Sunny said...

Hello Frank!

As for the return, that's what my blog is all about! I write and post about everything I do.

But you gave me a good idea to start a new page, something like "My trade history" just like "My debt" page etc...

In a post before, I had write about the money lost and the gain. I had lost around 6k (Timminco mostly) and gain 17k, for a gain about 7k.. that's here somewhere in my blog. A previous post.

I know how to calculate my gain and lost. You can just read all the post of my blog since the early beginning if you want, Frank. I don't have anything to hide. That,s why you see the portfolio AND the debt. If I wanted to do a fool play, I wouldn't have expose my debt. What do you think?

My mom is leaving tonight for New Brunswick and your request for showing my trade is giving me something to look into tonight when I will be alone...

I think I will miss my mom :)

pattirose said...

I would like to thank Rob for his comments. I hadn't heard of HZU before this post.


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