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Monday, May 16, 2011

Be ready, TMX Group Inc. (X) is on fire

My experience with day trading had been a positive one despite the fact that I still hold on date of today several investments that were supposed to be sell on the same trading day. They are: BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) (buy at 6.65$), Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) (buy at 7.79$) and First Majestic Silver Corp (FR) (buy at 19.34$). Currently, BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) is at 6.37$, Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) at 7.23$ and First Majestic Silver Corp (FR) at 17.30$. Because those 3 holdings are not penny stocks, chances are I will, on a later date, sell those 3 investments at profit. And that’s the reason why my day trading adventure had come to an end.

On May 12, Google Blogger platform experienced some technical difficulties and because of that, some interesting Anonymous comments had been lost. I had been able to retrieve one of them. One of those comments that I now believe been erased was saying that I had sell BA to invest in silver (that happen several months ago, so you can consider that the comment was coming from a long time reader!) and that I had turn myself into a speculator instead of an investor and so on. Wow... Back in November-December 2010, silver was hot and was climbing and gaining in value like crazy. It was natural to wanted to follow the silver flow. I mean who wouldn’t like to make easy money on silver anyway? I don’t regret my move, trading silver on Sprott Physical Silver Trust UTS (PHS.U) had been quite fun and enjoyable.

But overall, if you consider between being an investor, making thousands of dollars by buying and holding or being a day trader making less than an hundred dollars per day, well, I prefer to be an investor and stick to what I do best, this being buying and holding. Day trading is fun and exciting but it required a lot of attention and it can really burn you from the inside. For the couple of days I concentrate myself on day trading, I was in front my laptop, doing nothing more than trying to time the Toronto stock market. And it burns me. This being my own experience, other people can handle it, like DVDguy, for example. So why, would you asked me, why did I start day trading? Well, everything related to the stock market is hot and sexy. It’s too bad, but having the opportunity to make quick and easy cash, I could simply not resist. The temptation was way too high. I still have my dream stuck on day trading, but with those 3 pending sell order in BetaPro NYMEX Crude Oil Bear Plus ETF (HOD), Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) and First Majestic Silver Corp (FR) I will say I had calmed down. Day trading is the opportunity to make quick and easy money from the stock market. Why should I stay away from the opportunity? This being said, I will continue to focus mostly in investing rather than day trading.

Obey to the impulse...

Lately, I had been told as being impulsive by a reader. My investment in TMX Group Inc. (X) was certainly an impulsive one. The announcement of a merger with the London authorities a couple of months ago captivated me. I did not hesitate; I invest in some TMX Group Inc. (X) without thinking, using monopoly money. I wanted to be part of the deal. I knew the TMX Group Inc. (X) stock value was going to gain in value. And it did. Today, TMX Group Inc. (X) gain more than 6%. If I would had sell my TMX Group Inc. (X) stocks today, I would had made more than 300$ in profit. Am I going to sell now? No way. Things are just getting more interesting for the TMX Group Inc. (X). Also, another dividend payment is on its way for TMX Group Inc. (X). Investing is a great thing, but answering to my “impulses” is what had paid best to far. No way I could have known for sure what was going to happen with TMX Group Inc. (X). You have to keep in mind that as a human being, all the answers are in you, you just need to listen to yourself, keep grounded and if you are more or less equilibrate well, listen to the impulse lol... It’s quite very something that I wasn’t describe as impulse before actually.

Actually, it’s not about obeying to the impulse, but more about satisfying the impulse. And when I get a comment of the like “you don’t know what you are doing” well, to that I am tempt to answer that’s right, I don’t know what I am doing, but I know how to obey the impulse.. lol.

Great gains for Data Group Income Fund (DGI.UN)

Anyhow no matter what it is, for the past couple days, another investment of mine had performed extremely well: Data Group Income Fund (DGI.UN). I had invested in Data Group Income Fund (DGI.UN) after a reader send me an email, saying he was investing in EIF and DGI.UN and both were about to make fantastic gains. I did my own reading of course and find both companies very great. I invest little money in both companies and so far so good. Same thing with Westshore Terminals Invest Corp (WTE.UN) and WesternOne Equity Income Fund (WEQ.UN), who both were suggested by 2 other readers.

This being said, Data Group Income Fund (DGI.UN) had extremely made very good gains and it was about time. For a while, I had considered Data Group Income Fund (DGI.UN) as being one of my troublemaker stocks. But of course, it’s not anymore.

More about First Majestic Silver Corp (FR)

I wanted to wake up early this morning to listen to the Conference call giving by First Majestic Silver Corp (FR) concerning the financial results of this first quarter. But it did not happen. FR made more than 20$ million for this first quarter. I still have hope to sell First Majestic Silver Corp (FR) at 20$+. But the title seems to be volatile, which is good, but I cannot wait for the title to gain in value again. There’s still hope for this trade to be completed soon.

Day trading yes, but moderately.


Anonymous said...

Do you see what I mean when silver is down, your stock PSLV and PHS.U will be down, but HZD will be up. So what you make on one, you lose on the other.

Anonymous said...

Yeah, silver was hot in november december and even first part of 2011. You've jumped in to something that was supposably hot and you've lost money instead of doubling or making easy money like you said when you where buying.
And you say you enjoyed trading silver and losing money.

They say the sure way to lose money is to chase the hot thing: Technology stocks in 2001, oil in 2008. That's why I predict that you're doomed for failure as your impulse will have you chase the hot stocks of the day and will eventually get you in trouble.

Sunny said...

Hello, this was just a fun post just to laught, you know alone in my apartment, and writting about money and impulse... :0)

Thank you both for commenting, I will be careful. FR is down and I don't get it. Day trading been fun for a while. I did not trade today.

Sunny said...

I understand better what you mean for silver now.

Anonymous said...

Sunny, you need to google "ETF time decay." Your Horizons betapro investments (HOD, HZD) are not stocks, and should not be held like stocks because they lose value over time due to volatility. For example, if the price of oil or silver goes up $1 and then back down $1, your ETF's will actually have lost value even though the commodities they are tracking are right where they started at.

Unknown said...

Yup! DGI.UN took a dive and came back up! I picked some up at ~5.90. When it went further down, I got confused and didn't buy any more, instead I just held (it went down to about 5.30-something I think).

The problem was, I has having a lot of trouble finding info on this stock aside from this blog and their own website (google news just turns up jibberish). Would you please tell where you read up on DGI.UN? If something like this happens again I'd like to be prepared.


Anonymous said...

Nice, did you delete all the comments again?

Sunny said...

I did not delete comments.

On May 12, Google experiment some technical difficulties, which had delete anonymous comments made on that date as well of my post for that day. It's the first time ever it was happening. Usually Google Blogger platform is reliable.

Since May 12, no other problems had happen. It was just on that date.

DVDguy said...

While I think Anonymous should grow a pair and post under a name I do agree with him in this case. HOD pays nothing in divended that I can see... and the 3 month cart is down 22%... this guy sends me $$ each and every month!

Sunny said...

Hi DVDguy,

So far, most of my day trades had been done on ETF. I know they are not stocks. Since I am not into penny stocks because of too high risks, I find it's better for me to invest in ETF for day trading like I did and explain so far.

I am mostly dividend oriented, but when it come to day trade, I prefer something else than penny stock. No penny stocks for me, no more. I have DNI, HE, BNT, TIM already, I won't be adding more and I won't ever day trade on penny stock.

I know you had been successful on penny stock, that's good, but it's not something I personally like.

DVDguy said...

Hey Sunny,

Certainly understand your lack of interest in touching stocks under $1. keep any eye on that chart for some pretty active TSX stocks. Good Luck! ($400 day for me)


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