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Wednesday, March 23, 2011

The silver of Eric Sprott trading like gold: Sprott Physical Silver Trust UTS (PHS.U)

I wake up late today (again!) and I was only able to take a look at the stock market on my way to work. I was shocked to see a TMX burning the old 14 000 points, but I was more shocked, completely amazed to realize that my Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) was exceeding the 34$ per unit! WOW! When I saw Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) running somewhere to 34.20$, I place my sell order and was able to sell immediately my 150 units at 34.24$!!! With the stress of the past days, I taught I was never going to sell HZU at profit. The past days, I saw HZU going as low as 29$ per unit... I didn’t want to miss my chance to decrease the amount due on my margin account, this was my time... the timing was perfect; I was going to make it after all and YES I DID IT. I sell HZU at 34.24$ per unit, making a profit of 98.50$ after sell and purchase commission (this is for you Frank). This amount is perfect as its covering the interest of 90.88$ own on my margin account. Absolutely perfect. This is exactly what I wanted. Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) closed the day at 35.04$. I could had made more money out of my sell of course, but there’s no way I could know that HZU was going to close at 35.04$. No regret, just a lot of fun and exciting trading time. This is getting real interesting.

Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) or Sprott Physical Silver Trust UTS (PHS.U)?

I am feeling much more better now. BREATHE... The amount due on my margin had decreased. That 5k investment of mine in Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) was not even paying a dime in dividend anyway. Better to get rid of it! HZU is an ultra complex holding! Really not for an investor like myself. Hell no.

If you ask me to choose between Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) and Sprott Physical Silver Trust UTS (PHS.U), I will pick Sprott Physical Silver Trust UTS (PHS.U). HZU is much more volatile, very sensible to the outside aspect of trading. Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) is far of being one of my favourite. It caused me a lot of stress among the way.

Sprott Physical Silver Trust UTS (PHS.U) is much more stable and reliable. I had been actively trading PHS.U since November 2010 and I am a huge fan of the Sprott Silver. The only thing I dislike about the Sprott Physical Silver Trust UTS (PHS.U) is that it’s difficult to trade it in a Canadian currency account. But... WOW. PHS.U has it all! PHS.U is certainly my favourite silver holding of all time! Big money can be made of the PHS.U. The proof being that the little investor that I made big bucks out of PHS.U. Despite its currency problem, it’s possible to make HUGE amount of money out of the PHS.U and I am going to tell you how, simply and easy.

So here it is, the Dividend Girl way to make huge profit out of the Sprott Physical Silver Trust UTS (PHS.U). Here’s the story behind. TD Waterhouse rep can be very helpful when you become angry and hateful after them. Remember this post? At the time, I was back home in New Brunswick for my uncle funeral. As always, I was closely watching the Sprott Physical Silver Trust UTS (PHS.U) as always and, as always, the PHS.U was running in fire, exceeding my wildest expectations. That was huge! I calculate I was good for a 300$+ profit, but the 300$ profit turn into something like 40$ after currency conversion. I will never understand this. PHS.U is a TMX ticket symbol. Sprott Physical Silver Trust UTS (PHS.U) trades on the TMX BUT trade in US currency. Why? God why? Anyhow, on that time, something happen that I wasn’t use to, the currency eat major part of my profit! I got ripped off by TD Waterhouse! AGAIN! ME? Being ripped off? NO WAY...

I got that incident in mind and a couple of days ago, I got upset to a point I needed to speak to someone and well, having no one to really talk to about my investment, I call TD Waterhouse. The one and only TD Waterhouse. As always, I went on the English line but got a lingual rep. I wasn’t lucky, but at least, I was able to speak my mind. And tell, I explain what happen, that usually, the currency was of far less than 4% and something. Sometime .2%, etc... What went wrong on that day? Why was it 4%? And there, in the moment, I told the guy: TD cheat on me! (I know, that was mean of me but...) Than, the rep explain it was because of the currency, that it was a value that was changing all the time etc... I know that of course, but still... 4%&?%!!!!!!! NO SENSE! HELPPPPPPPPPPP :0)

Following his explanation, I ask him how can I get rid of that currency thing? Could you please transfer my PHS.U units into the US account? PLEASE. Well, the answer was a big NO. Why? The following is very important and is the key to make HUGE profit out of the PHS.U.

Remember 4 words: TFSA, RRSP, PHS.U and WASH. According to the TD Waterhouse rep, I didn’t need to get my units of PHS.U inside the US account, because I was holding them in my TFSA. A register account, TFSA or RRSP is magic when it comes to trade PHS.U in a Canadian account.

I didn’t sell my PHS.U units hold inside the TFSA account and I don’t plan to do anytime soon. But in case of an emergency, I will sell PHS.U and now, because of that WASH thing, I know how to avoid the currency thing related to the PHS.U.

Simple and easy: whenever a profit can be made. Sell. In the evening following the sell (it can be made after 4pm according the TD rep), call in TD Waterhouse and ask for a WASH for the TFSA and, from what I understand, the profit made won’t suffer of a currency thing. Which mean that if you make a profit of 300$ while selling the PHS.U, you will have a 300$ profit at the end of the day. But at the only condition to request a WASH. A WASH can only be made inside a TFSA or RRSP account. Pretty easy to remember too. WASH like wash your dirty apartment, WASH yourself, WASH your dirty clothes lol.... But of course, you understand this is my own interpretation of some stuff that I barely understand: get a confirmation of a broker first BEFORE actually going on with washing.

That’s how I learn, in a moment of complete desperation, how to make money out of the PHS.U without having to worry about the currency. And I have, of course, to thanks TD Waterhouse for that. Genius. I still hold PHS.U in my TFSA on date of today.


Frank said...

Yeah, that's really great. You risked $5000 for a profit of $98. You really killed that trade. And it was borrowed money, so you have to deduct the interest you are charged too.

And you lost 3 times that amount on New Flyer. Also with borrowed money.

Yep, you're a really great day trader. Keep it up.

Sunny said...

Try to do the same with your money. NFI.UN is here in my portfolio to stay. All this is too share my trading experience, not to show it all. Maybe the info I post will help someone to trade properly PHS.U. This is about me and its me your hurting Frank when you'll being sarcastic.


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