Be ready: the selling of Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) might be on its way

Quiet weekend spend at doing some quiet things. I worked at my usual weekend job, than on Saturday night I went see the latest X-Men, very fun to watch. At my weekday job, I am received bonus points and one reward we can get is free movie tickets. That’s what I usually buy. I just bought 2 other ones for this month of June, but because of Post Canada strike, I may not get them anytime soon. Some awesome Hollywood Blockbusters are on their way for the summer, among them the new movie of Woody Allen.

I did not update my investment portfolio value for a little while and that was more or less wanted from my part. Lately, I did not feel like updating it for many reasons. I had been focusing mostly at trying to sell HOD and HZD at profit. Those said I should sell now and loose whatever were very wrong. I cannot predict the future, but what I know is that the economic situation in Europe is not getting better. The US data shown that the recovery from recession may take longer than anticipated. All those factors combined together make a good stock market condition in order for me to sell at profit my units hold of HOD and HZD. So everything is going to take place slowly, but certainly. And selling my holding in HOD and HZD will be a big +, it will help me to decrease my margin account usage. It’s still at this time under control.

Some readers comments make me feel real mad, like the ones saying to sell “now” Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) (and will conduct me right to a capital loss), but some other bring a smile to my face and make me laugh. Of me of course, but also all this thing about my money blog. Like life is really all about money right lol... I got that reader commenting my margin account usage. Here’s the comment, post on the entry of June 1, 2011:

“Sunny, I remember when your followers where suggesting margin account and you wanted to stay away from it. You have to be very careful with margin. If you want to pay off some margin, think about selling HZD along with another of your silver holding. Why, because you`re not making any money on it, what you win on one, you lose on the other, so why not sell some of each.

I understand markets are volatile, but if silver does go down (which would make HZD go up), you would be losing on the gain you would`ve made on HZD, but you could buy some silver shares cheaper than today`s price. If silver goes up, you will lose money on the silver shares you sold, but you would be saving the money that you would be losing on your HZD. (Ex. if you would`ve sold HZD and PSLV yesterday, today you would`ve lost the gained from HZD, but you also wouldn`t had lost money on PSLV, so really you weren`t losing anything)

So why not sell some Pslv and HZD; and if ever HZD does reach 8$, you will be able to rebuy PSLV at around 14.50. If it doesn`t you would stop losing money on HZD and cancelling your gains on other silver investments.

Sunny, this is the last time I will bug you with this, but think about it. This is a solution to get out of your trade, pay off some margin and you`re not losing any money.

I`ve told you before, when you`re betting for silver and against silver, it`s like going to Las Vegas and betting 2,500 on Vancouver winning the stanley cup and 2,500 on Boston winning. At the end, you won`t make any money but you will be paying interest on the money borrowed. I think you`ve noticed that in the last month.”

What amazes me most is when I am getting a comment and by that comment, you know that it can only be a long time reader. Like wow... Each time, it blows me away. Like people really reading this s. Oh lol... Of course, I know people read, but in that specific comment, it’s a reader who had following it all since I started the margin thing. That was way back in December 2010! See what I mean?

I started the margin account in December 2010 following a reader suggestion, Dividend Lover. At that time, the idea was to use part of the margin account money in order to pay debt at a higher interest rate. During the last quarter of 2010, noting that I had all those debt, I wanted to do something in order to decrease the interest money needed to be paid on all of my loans. That was the goal. My investment portfolio was doing very well, more than I could ever imagine. Selling part of my portfolio just to pay some debt was out of the question. The margin account idea was about paying off debt, it wasn’t money to be use to invest more, or even worst, money to use to do the day trading on... This is actually very funny knowing how much I was scared of opening a margin account at the first place. I think I may have expressed the scary feeling extremely well by writing because the commentator did not forget that one...

Actually, I did pay part of my debt using my margin account. I had paid my 5 000$ credit line using my margin account money, remember? But that was all... Why? Well, I quickly began to use my margin account money to invest following that...

The idea of Dividend Lover was great, it’s just me who became... an investor freak lol..... (that one is really funny isn’t?). But hey, the temptation was way too high. Imagine, opening a margin account brought in a 65 000$ in monopoly money (I just loveeeee to name the money brought in by the margin monopoly money). Fact is, monopoly money IS REAL MONEY and I CAN DO WHATEVER I WANT WITH IT.... WOW... Think about it: 65 000$!!! Youhou!

In live, I don’t care about my look, I don’t care about the clothes I wear. I don’t care about jeweleries, expensive restaurants, going out in night clubs, going away in vacations... I DON’T CARE. I really don’t. That’s what’s best about me.

But what I do care about, however, is investment. When I started to invest in stocks in 2008, I never had a doubt in my mind, I knew I was going to rock the investment game and I did (this being said, from my own perspective of course). I started just before the 2008 stock crash, I invested 5 000$ in Sprott Inc. (SII) and shortly after, the title was crashing to less than 5$ per stock. Despite the stock crash event, there was still no doubt in my mind, I knew I was going to win and I did. I received special dividend after special dividend of Sprott Inc. (SII). The SII title went back up, as for most of all of my holding. I totally recover from the 2008 stock crash without any problem because I knew I was able to go somewhere by investing in stock. This is the story of my first stock investment that I like to repeat over and over again.

As a small investor, I want to be able to take advantage of all of the possibilities being offered on the stock market. So when the sky is giving me 65 000$ my slapping its finger well... I WILL TAKE THE MONEY and INVEST IT. Or just part of it...

Dividend Lover was kind enough to comment on this blog of mine and he really did the best he could to put me back on track. Message had been kind of a: remember, you said you were going to use your margin money to pay off debt... That was a beautiful message coming from his part. Full of a common sense that had left me alone among the way.

Always from my point of view, so far, my investment adventure went well, but no matter how well it went so far, I am EXTREMELY aware that the market is volatile, the situation in the USA is still fragile and in the old Europe, the situation is catastrophic. That’s why lately I had been working on myself in order not to invest more and not to do any more day trading. Because if I continue, I could severely burn myself. I am aware of the danger and I understand the risk. I always did, it’s just at a point the stock market over excited me, it got inside me deep in the brain. I don’t have any excuse, but I am “just” 30 years old after all ok. Young bitch and money = BORDEL. :0)

The major event that mark the over excitement was when the TMX Group (X) announced the merger of equals. You don’t know how at first I was happy about the merger. I was open to all the possibilities that a merger could brought in. New capital money for the Canadian stock market, a growing perspective. More money meaning stocks gaining more value. More value = more profit. MORE $$$. WOW!!!

But I am now against the merger because I don’t want a French of France to be in control of the proudest thing the Canada possess: it’s very own exchange. I don’t like Xavier Rolet. I don’t like him at all.

Once the over excitement took control of my whole body, I did it, I purchased 100 stocks of the magnificence TMX Group Inc. (X). That when the merger project had been officially announced, a couple of months ago. I had a good feeling at that time about the merger of equals and getting some stocks of X in my portfolio was not a luxury, it was a necessity. And it was a good thing. I had cash in the dividend, my investment gain in value and will probably continue to gain in value.

I am not a genius, I am just a girl who like to listen to herself and no one else. 

So good so far, but I am truly aware of the risk, once again. I know and I understand. That’s why I won’t invest again for a little while, not until I sell HOD and HZD at profit, at least. The risk would be to become too confident and trade trade trade. But I am never over confident, only sometime over excited. I am just happy to have good readers. I did not respond to the glorious comment. What could I have answered anyway?