Ether_Snake
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Anno said:
Well since I made the post asking about GLUU, it went from 2.80 to 3.73, up 25%. My buddy bought some at 2.34.
PEG is at -0.84.
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Stock-Age: Stocks, Options and Dividends oh my!
- Thread starter koam
- Start date
Well since I made the post asking about GLUU, it went from 2.80 to 3.73, up 25%. My buddy bought some at 2.34.
PEG is at -0.84.
mackaveli said:
In Canada, it depends on the frequency of the trades and nature of the transaction. If you trade enough so that your time investment and overall intent is to generate income from day to day trading in a similar to a business, then all of your gains are assessed as income. Just about anyone who would call themselves a day trader would have to report it as income.
On the other hand, if you infrequently trade stocks or are just trying to learn about trading and so forth, it's treated as a capital gain regardless of how short you own it.
In Canada, it's the character and nature of the transactions that qualify the tax treatment.
If you trade within RRSP accounts, it doesn't matter since all gains are tax exempt until you withdraw funds. The downside is that 100% of the gain is taxable on withdrawal and losses cannot be claimed (you'll need to do a swap to keep losses to apply against gains, so consult with a financial adviser to help you if that is the case). Of special note is that depending on which trading service you're with, trading inside RRSP accounts ignore exchange rates for US and Canadian transactions.
If you trade within TFSA's (Tax Free Savings Accounts) then all of your gains are tax exempt.
Ether_Snake
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Atrus said:
That's so stupid! At least it's not taxed if it's for the first purchase of a house right (HBP)?
Ether_Snake said:
Correct but you have to repay the funds you withdraw from your RRSP within 15 years and those repaid funds won't reduce your taxes like the original amount did. So really, that amount is still taxed just not at the time you withdrew it for a home.
Frankly this doesn't make much sense to me because if you've got no money and need to borrow from the RRSP to pay the down payment, then you're probably not making enough money to pay off the mortgage and repay the RRSP loan.
The same goes for the education withdrawal as well but that has a time limit of 5 years I believe.
Ether_Snake
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But I put money in my RRSP to make the down payment in the first place, it's not like I'm suddenly pulling out money I didn't plan to pull out to begin with.
Anyway ERTS up 8%, why? I see nothing major. Can't complain though.
Anyway ERTS up 8%, why? I see nothing major. Can't complain though.
Ether_Snake
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Anyone know why POT plunged recently? I find nothing in particular in the news. I know the government stepped it to prevent it from being bought by a US company, but that was a few weeks ago. The sudden drop seems unrelated.
http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined
I'm thinking of buying some at that price.
http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined
I'm thinking of buying some at that price.
Krauser Kat
Member
Can one invest straight into the dow?
Scott32020
Member
The NYSE traded Potash isn't showing that activityEther_Snake said:
Ether_Snake
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Scott32020 said:
Oh I see that was weird since I searched for POT.
Ether_Snake
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Atrus said:
Ok, but I guess Yahoo.com just has a bug where it messes up the chart, cause it shouldn't lead to a drop on the chart after a split.
I have a little bit I've been playing with (started with $300.00) or so and it seems to be doing pretty good. I'm really glad I bought Mad Catz when the SF sticks came out ($.27 a share) since they hit $1.99 yesterday.
I really haven't been doing anything since we had our daughter though. Hopefully I'll get some more money to buy stocks again.
I really haven't been doing anything since we had our daughter though. Hopefully I'll get some more money to buy stocks again.
Krauser Kat
Member
alright so i have about 6k i dont really need in the near future barring catastrophy. Which my wife also has about 12k to cover most stuff. It still leaves with 2k in savings. I currently have 4 of it in a really shitty goal saver account at my credit union. Where do i go to take that money to start putting it in some stocks. like E-trade and stuff?
Krauser Kat said:
I've always been happy with E-Trade. At any given time all of the major discount brokerages have any number of incentives going if you open an account. Just search around and try to find who currently has the best combination of price, customer support and available research. If you have a smartphone you might also choose a brokerage that has an app. If you intend to purchase and hold dividend paying stocks for longer periods of time also make sure to find out the brokers policy on free reinvestment of those dividends.
otake said:
Don't be. I mean for most goals that warrant mutual funds I'd prefer index funds, but in general take what people say on here as a grain of salt.
Investing stories are polluted by human psychology. People remember their wins and forget their losses in conversation. Someone will say "I got a 500% return on Ford in the past couple of years" but forget the time they dumped their money into a stock and lost 50%.
The market average is rarely consistently beaten. There are a few investing gurus out there, but it tends to be either luck or a lot of hard work reading financial documents and talent. I don't think it's ever casually playing the market.
There is one method of investing that is likely to yield greater than average returns, but it comes with a moral burden (depending on what you believe): cigarette stocks. If you want to make 10+% per year on average, put your money in Altria Group. Look at the dividends over the last 20 years. Frequently they are above 5% per quarter.
Krauser Kat said:
If you don't have a lot of money, I suggest aiming for smaller targets in mind. Even if you saved $2000 a year at an average return of 5% for 35 years, you'll be able to withdraw $11,000/year for another 35 years when you retire which for Canadians is good enough to live the same lifestyle you do now if you're married (if you're the average). Increase the yearly savings, increase the returns over time. With OAS and GIS, you can afford to save even less for a modest but uninteresting retirement.
How you get the returns doesn't matter so much as you start saving as early as possible and take advantage of the compound growth while maximizing your returns.
One of the best investments you can usually make is consolidating your debt and paying it off. There's no reason anyone should be investing while compounding credit card debt at rediculous rates.
Intelligently guided education and retraining is also good as it allows you to substantially improve your immediate income, pay down all debts while giving you larger contributions to invest over time.
Ether_Snake
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teh_pwn said:
One way or another, I make an average of 10% on my tax-free account, an average of 12% on my taxed account, and an average of 9% on my RRSP, and I have been investing since 2007 which was at the height of the bubble so even that drop factors into those numbers
And where do you see 5% dividends per quarter on MO? I see 1.52% for the last quarter, so around 5% a year.
Ether_Snake
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Ether_Snake said:
And now it's up another 9% today!
teh_pwn said:
So far their are actually four known investment strategies of beating the market.
1. Value Investing
2. Small-Mid Cap Companies
3. Momentum Investing
But the only surefire way of beating the market.
4. Dollar Cost Averaging.
Myself, I stick to strategies 1,2 and 4. But I actually play much more in the realm of small and micro cap as those markets are no so efficient.
Also diversification is an excuse for ignorance. Meaning if you do not have to time to read every single 8-k and call up management to field your questions you better diversify. I am comfortable only owning 7-10 companies, because I do not want to diversify away my alpha.
Javaman said:
By all means short gold if you think the recent skyrocketing prices of commodities have only been caused by increased demand and if you think that some of the riots today are not partially food riots.
Bennie and the Inkjets have been exporting inflation, it will come back to us.
RumblingRosco
Member
I have never participated in day-trading. I cannot see the benefit, nor would I want to even if I did see the benefit. Truth is, I've never sold a stock. Ever. I just keep buying, letting the losers continue to lose or the winners continue to win. So far, it's working out well.
I know for a fact that I sucked at it. I had a few wins here and there but mostly lost. Buying and holding seems to be the only winning strategy. It took some bad loses to realize that. I kick myself everyday for not buying and holding during the financial crisis.
As the saying goes, hindsight is 20/20.
As the saying goes, hindsight is 20/20.
90% of the stocks and ETFs that I'm currently holding pay dividends. The dividends that I receive are reinvested. My goal is to one day have my dividends become my main source of income.bathala said:
What about '08, early '09? Were u tempted to sell?Soka said:
Ok, so I've never really played the market, I sold about 95% of all my stock which was given to me by my company. I used it to pay off all my credit debt and still have $8k sitting in the bank. I got laid off last week but I have a very nice severance package, I'm also getting all of my vacation days cashed out, 31.5 in total, plus I get unemployment stacking on top of all of this, and I get my bonus for 2010 also paid out. I'm actually moving back home for a few months but more so to allow my plans of travel to not end up wasting money on rent for an apt I got to be close to work. So I'll have an incredibly huge amount of money coming in as I sit around trying to figure out where my life is headed. I'm looking forward to the bright future but I want some advice on some good long haul investments, I'm not particularly interested in quick risky stuff. I also have my 401k that I need to figure out what to do with, so any advice there would be greatly appreciated!
Hasphat'sAnts
Member
CFMOORE! said:
The best advice anyone can give about investing in stocks is from Ben Graham: when you buy stock, you're buying a piece of the company. Forget gains/losses, would you be happy owning a piece of it?
Krauser Kat
Member
So to respond what was said earlier.
I have very minimal debt. I have a house, and my wife has less than 8k i think in school loans. thats about all the debt we have and i already add 50% more principal to every mortgage payment, and still come away with additions to my saving almost every month.
Also to sum what i have learned on this page is to.
*invest in companies i would like to own
*Dont try and play the market, usuallly ends up in you making less than the Avg.
Index funds looks like a nice place to start. I know vanguard advertises on NPR so i kind of want to go there. the Index500 looks decent and i can start as low as 3000, i will probably start with 5000.
this is kind of fun.
I have very minimal debt. I have a house, and my wife has less than 8k i think in school loans. thats about all the debt we have and i already add 50% more principal to every mortgage payment, and still come away with additions to my saving almost every month.
Also to sum what i have learned on this page is to.
*invest in companies i would like to own
*Dont try and play the market, usuallly ends up in you making less than the Avg.
Index funds looks like a nice place to start. I know vanguard advertises on NPR so i kind of want to go there. the Index500 looks decent and i can start as low as 3000, i will probably start with 5000.
this is kind of fun.
Gallbaro said:
I'm curious, what are we defining as an "obscene amount of principal"? With a $1M portfolio yielding a modest 4% you'd rake in $40k a year before taxes come in. Depending on your age you could get to that $1M without investing near as much. Getting into stocks that can continue raising dividends year after year is (IMO) a great investment decision and a way of fighting moderate levels of inflation without having to eat into your principal.
Between my taxable brokerage and my 401k I too hope to make constant dividends my main source (not only, but main) in retirement. Maybe my goals for retirement income are just a lot lower than others.
also to add to my initial query, since i have all the free time in the world, any great resources you guys recommend for learning as much about all of this stuff in general, these dividends people are speaking about interest me, 401k advice, general rules and suggestions for investing, etc?
thanks!
thanks!
bathala said:
The only thing I have that doesn't pay a dividend is AAPL. The only other stocks I have are ARMH and NGG (it pays a nice dividend). Eveything else in my portfolio is Vanguard index funds (sector, strategy, bonds, divided yield etc.). I do have MINT as well for my cash and HYG for high-yield with a little risk
Soka said:
I hold quite a bit of COOL as well. They have floated under the radar up until recently. A lot of eager fish are now jumping on ship as the board is painted green day after day. I'm considering a dump before numbers report mid-next month. It may very well hit $2 by then, which is just about where I would feel content walking away, even if it spiked again after that.
I dumped all my ATVI before Cataclysm. That company has been making poor decisions and I am glad to have transferred those assets elsewhere.
CFMOORE! said:
There are a number of good books out there. The Intelligent Investor is still a good reference, as are most books by John Bogle (of Vanguard fame). My favorite book has been The Five Rules for Successful Stock Investing by Pat Dorsey, head of equity research at Morningstar. It was a great way to learn the basics of many larger industries and how to view companies in them.
After that it's more about keeping up with research on individual companies and industries. Unless you aspire to be a day-trader, investing in companies that are set up to do well long-term and understanding what it is that makes them tick will go a long way to helping you make good choices. Listen to conference calls and investor presentations, read every 10k and 10q that your companies publish and set up your portfolio and/or watchlist at somewhere like DailyFinance that aggregates a large amount of news on individual companies. A little bit of (even informal) education into basic accounting will help you read and understand all but the most complex balance sheets, income statements and (to me the most important) statements of cash flow.
I fully admit I'm relatively new to investing but I really enjoy it so I don't mind the hours I put into research.
tarius1210 said:
I don't day trade at all. I trust what has worked well and I stick to value investing, in buying undervalued or over-beaten stocks and either getting out asap with new news that changes the valuation (usually a result of not knowing the sector), or sticking with it based on the fundamentals and market movement.
Centerra Gold, Weatherford International, Sunpower B are all stocks that I still hold for a year or less and 2 have doubled with Sunpower being close. Wabco is another good example that my Dad bought on my recommendation since I didn't have sufficient capital at the time. These are good examples of what I mean and reinforce the 'buy low and sell high' concept while also making you ask yourself, would you like to be a part of this business?
It's worth noting that I have an accounting designation and it still takes me a long while before I research before buying a stock so I can't quite imagine making confident buy and sell decisions in a single day, especially since I invest in large lump sums relative to the average person.
I'm very happy with my returns as is.
RumblingRosco
Member
tarius1210 said:
I'm the same way in regards to dividends. I value them very highly, especially considering how long-term I hold stocks. I reinvest all of my mutual funds and take the cash from all my stocks; no specific method to the madness, it's just how I keep it organized. I then take all the dividends from my stocks and invest those into new stocks. Helps me stay diversified.
In regards to '08 and early '09, I was only slightly tempted to sell. I know I could have sold when the market hit 10K and then bought back between 6-8K and been up in the long run, but that is only with the benefit of hindsight. I had no idea how to predict the bottom, all I knew was that I expected the market to eventually recover to 12, 13, 14K and beyond. So, during that period I bought a lot of stocks. I basically bought a new stock or two every 2 months from August '08 until May 2009, riding it down the entire way. It's a bit scary at the time, but right now I'm feeling pretty damn happy with that decision.
Someone earlier mentioned purchasing into cigarette stocks. I bought MO (Altria Group) in September 2008. Only up about 25%, but that ~6% dividend I've had since then is great. Really, I can leave my money there and beat any CD or bond and just about beat the average of the entire market year-over-year, not to mention the actual stock price appreciation on top of it. It's quite nice.
Moral: I'm a big fan of dividends.
Ether_Snake said:
http://www.google.com/finance?client=ob&q=NYSE:MO
1993, 1994, 1999, 2000, 2002, 2003, 2004.
It goes in waves. MO was the top performing stock of all time at one point.
Ether_Snake
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teh_pwn said:
Oh but you can't predict when/if they'll give another 5% per quarter.
GLUU ended the day at 11.63% up. It's almost up 50% in a month! I should have bought when I talked about it like my buddy did.
SSGMUN10000
Connoisseur Of Tedium
I started an account with Tradeking and sent a money wire transfer on the 16th. A little frustrated that the money still has not posted. I sent over 7 grand to start off with. I have been doing some research and here are the stocks I want to invest in. Tell me what you guys think. I am not doing day trading just want to hold on to these for a good while.
COOL Majesco
HERO Hercules Offshore
VTG Vantage Drilling
F Ford
COOL Majesco
HERO Hercules Offshore
VTG Vantage Drilling
F Ford
SSGMUN10000 said:
What's so great about Majesco? I've seen others post about owning it but as far as I see, just about all public video game only companies are horrible.
Majesco shares have been fairly flat for years staying just above the minimum required to stay listed on the Nasdaq, they don't appear to offer any dividend and they've reverse split their shares twice to the detriment of shareholder value.
Looks like the only value to be had in the long term is if someone else buys them out or the world goes crazy for Zumba fitness and Cooking Mama.
Ether_Snake
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Again, no one is worried enough to sell a lot of what they own? On one hand, I have a couple of stocks that are doing really well and that I could sell for a decent profit. On the other hand, those same stocks are pretty much my best stocks which I could sleep on long-term.
The biggest advantage I could have in selling stocks is that it would allow me to have some money to make good purchases when markets go down.
The biggest advantage I could have in selling stocks is that it would allow me to have some money to make good purchases when markets go down.
Ether_Snake said:
I certainly don't pretend to know the market well enough to try timing it. People have been calling for a 5-10% pullback since December and we've only gone higher. The companies I hold are still going strong, so even when the market does dip (and I'm sure it will at some point) I won't be worried. I don't need the cash for anything else. Worst case I just reinvest dividends at a lower price point. It'll also be nice to get some quality names back to being cheap.