Those who tell me I should sell and cash in a capital loss were totally wrong! There will be no capital loss on those 2. The market being so volatile, it’s basically possible to make money out of ETF whose value increase when the stock market value decreases.
Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) kick in the morning at +3% and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) at +4%. Currently, HZD is among the top TMX gainers.
But will the gains will be enough to sell at profit? That’s what we are going to see, I am staying in front of my laptop in this beautiful Friday just for that reason. In order to make a profit, I need to sell HOD at +6.65$ per unit and HZD at +7.79$... Crazy. But I will certainly not gamble with my money ever again. My punishment for day trading? Having to stay inside while the day is absolutely beautiful... Seek for yourself... Absolutely perfect summer day.
These days, the stock market is not good at all. My value had decreased of several thousands of dollars. But once the market rebound, I will be doing a lot better. I can handle a non official capital loss as long as my asset remains there in the market, I am safe (more or less). Selling now will be catastrophic and it’s truly not an option. The only 2 things I want to get rid of ASAP are Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD). If it’s not good for today, I can still wait to sell those 2 at profit. And at profit only.
I had received some hot dividend distribution payment recently: Fortis Inc. (FTS): 31.03$, Group TMX Inc. (X): 40.40$ and Horizons Gold Yield Fund (HGY.UN): 10.84$. No DRIP for those little ones, so for once I was able to “cash the dividend”! The precious cash is greatly needed to pay off the interest own on the margin account money, among other. Extra cash is always welcome.
I never mentionned to you that you should sell HOD as your timing wasn't that off and you could sell at a profit. And I don't believe you have much holdings in oil stocks so you're not contradicting yourself in betting oil prices will go down.
ReplyDeleteAs for HZD, remember yesterday, you where excited your silver stocks where going up, while HZD was going down.
Well today, you're excited HZD is going up while the rest of your silver stocks is going down.
If you add all these stocks together, that doesn't add to much difference in your portfolio either way. That's the whole point, what your gaining, you're losing on the other side. It doesn't matter which way you put it.
I really don't care whether you sell your HZD or not because it seems you don't understand that even though you do sell HZD at a profit, your PHS.u and PSLV will be much lower than they are today and that's a fact. So why own these silver investments now if you could purchase them lower when HZD is up.
So don't bother getting excited when silver is up like yesterday because that gets your HZD further from the purchase price. And I wouldn't be getting excited on days like today as although HZD is up, because every other silver investments are down and will have to go down much lower to sell HZD at a profit. Hell, it's been going like that for the last few months and no money has been made either way
The only one that should be happy is TD as there collecting interest on your margin acct on trades that you made that can't make you money until one side or the other is sold.
You know that Carson Block that's shorting TRE. Well how ridiculous would it be that he would own stocks of TRE while shorting it. What money he would've made while shorting it, he would've lost it whith the stock he would've owned.
Well, that's exactly what you're doing with silver, you're shorting it with HZD but own it with FR, PHS.u and PSLV. How intelligent is that.
So if ever you come here all happy and say you sold your HZD at a profit, I can tell you right now that my answer will be that yeah and today (on that day you sold) you could buy PHS.u and PSLV at around 14.50.
And if silver happens to go up and your PHS.U and PSLV are worth 22$ again, well HZD will be worth like 3$ if that.
So you can keep this post and look back on it, it's all in writing.
Ron#2
Shut up!
ReplyDeleteLOL!!!!
ReplyDeleteHi Sunny - thanks for my first laugh of the day.
ok, I have nothing else to add and it seems you're having a bad day...
ReplyDeleteRon#2
Forget it dude, you're wasting your breath. Just enjoy the show and get your laughs while you can. She has no idea what she's doing. I've said it before, this is what happens when you allow incompetent people to have trading accounts. Get enough of them together, and the whole system gets screwed up (as it mostly is already).
ReplyDeleteThere will nothing to laugh about. My portfolio is strong enough to go through this crash. I find annoying having the same people commenting on the same thing over and over again. It's not the purpose of this blog. I am not seeking for advice. This is not fun in any kind of way. I would like to see your portfolio and see if can do any better. Your people suck.
ReplyDeleteFunny, I don't recall talking about market crash, This is far from being a crash, just a small correction right now. The TSX is only down about 5% since the beginning of june.
ReplyDeleteFrank, I agree, and then you have all kinds of these people wondering what's going on with the market. Alot of people trading here have no clue what there getting into and just following the herd. They buy stocks at 12$ and a few month after wonder why it's trading at 8$. Most of the time it was amateur investor paying too much or buying into when the big guys where selling. I think every time there's a correction a lot of people that are over leveraged on margin sell before it's too late (Sunny, this is not directed at you personally).
As for my portfolio, this correction as pretty much erased my gains for the year, but I am still up 1/2% while the tsx is down 2.5% for the year.
Again, this has never been about your gains or loss from your stock holdings.
PS: If you don't want the comment, just don't post them. You control this blog.
Ron#2
My comments are sometime long, so are your blog. If you barely read them, that would explain everything. You talk about arrogance from your readers, but you're not afraid to dish it out about Quebec, France or who ever else you please or name calling.
ReplyDeleteAs you share your investments experience, some readers have shared advice. Take it, leave it, that's up to you. Personally, I wouldn't jump in any stocks that most people would be pushing on these kinds of blogs.
Remember, I've been following your blog for a long time and never once argued with your choice of stocks. I am no smarter than anyone else to know what the future holds for them or any other stocks.
The only thing I know for sure is you're in a no win situation with HZD and that margin money would be better used buying any quality stocks that have been down since the begining of June.
I never criticized your investment in silver, just the fact that you're shorting it while you're also long silver.
adios
your little ass holes
Although I agree with anonymous that Dividend Girl's strategy is flawed, maybe I can explain what she is trying to do. Since she has not been able to elaborate, maybe since english is not her first language.
ReplyDeleteSunny bought both HZD and HOD for reasons that made sense only to her. Ok, whatever.
Now she needs to get out, but will only do it at a profit. Since the market cycles up and down, she will sell whatever holding she can make a profit on, and then wait till the cycle reverses, and then make a profit on the other side.
It is simple. It is still a flawed strategy due to her having to pay interest on her margin account, but simple.
Best strategy would be to liquidate some of each opposite holding, and eliminate the interest in the margin account. But for reasons that only make sense to Sunny, she has decided against that. That is her choice.
Sunny did say that she made a mistake buying the bear stocks, but now that she has them, she has chosen the strategy to hold everything until she can make a profit on it.
Yes, that is not good, as you should cut your losses and fast. Especially with time decay ETFs, and leveraged ones best suited only to day trading. Not "multi-day" trading.
Yes, Sunny has made a ton of mistakes, but she is not scared to talk about them. She is proud and arogant (even though she is one of those Quebeckers she despises, because she lives in Quebec and speaks french as a first language.) That is the most ironic thing of all.
But in the end, I do enjoy very much reading this blog, and salute Sunny for having the balls to post this stuff on the net.
Bravo!
Someone once told me that you never made a profit if you haven't sold the stock, i'd go further and say you haven't made a profit until you take that profit out of the stock market.
ReplyDeleteEven though you sell at a profit, if you buy other stocks, you can easily lose that profit you made and not be further ahead.
Sitting in fron of the computer and watching your stocks go up for months at at time is useless as it only takes a few days to wipe these gains. Basically, you lost all that time getting excited and are now waiting for them to go up again.
If you would be a citizen of Japan and invested in the Nikkei, that poor investor is still waiting for the nikkei to reach the close to 000 it reached in 1990. Today the nikkei sits at 9,500. That would be 20 wasted years.
You are right on what you say. You can make good money from one investment, and another one can turn out really badly. It's all part of the game. That's the reason why it's important to diversify a portfolio in different companies, different sectors, gold, silver, etc...
ReplyDeleteI wait about 2 years for my initial investment in SII to generate some profit. As long the money is not needed and that the investor believe in what he or she invested, I don't have any problem in seeing that person holding an investment. Even if it will be for 20 years. I may need to wait 20 years for my investment in TIM, BNT and HE to recover and gain. If it's the case, I will hold. 20 years is maybe a lot of years, but it could be less, it could be more....
It's all about diversification, hold if you believe in what you had invested and if not sell and declare a capital loss and hoping other investment will do better.
In my case, many investments had done great, like PPL, ENF, MX etc. The good ones equilibrate the whole thing. Also, investment is about what you can handle as risk. If you cannot handle the risk and loosing money, than, you may invest in GIC and other boring stuff. There's always a risk while investing in stocks. The trick is how intelligent your reaction will be in front of the crash: sell or hold. That decision, good or bad, need to be totally assume.
I assume myself as an investor. The 2008 stock crash was my first real one and it was a blessing because I recover and also learn that the stock market is risky. It need good nerves to go through such experience. I am certainly not a perfect investor, but I understand the basic and I believe that my diversify portfolio will be strong enough to go through this actual situation. That's what I am willing to learn from this.