Thursday, 30 May 2013

Questrade account, made!

Finally finished making my Questrade account. Still waiting to transfer my shares from TD Waterhouse to Questrade. In the mean time, I should probably install their platform on my computer so that I can track my stocks easier.

Tuesday, 21 May 2013

First trade!

Welp...made my first trade on the FX. Used a demo account from Oanda. It was a bad trade but at least I had a stop in place to limit my losses. My spread was also too wide or I might have made some profit on the drop between CAD/JPY. I thought the Japanese government putting money into their economy would make it go the other way. Oh well, still a lot to learn and hopefully I make most of my big mistakes on the demo account.

So, to put the analysis in point form:

- Misunderstood the direction based on the fundamentals
- Did not analyze the fundamentals properly
- Set my spread too wide


That's all I can think of...

Monday, 20 May 2013

What I learned from reading The Market Wizards

Great book written by Jack D. Schwager. I can see why this is one of the top recommended books.

Anyhow, here's some tips I learned from it. Not sure how useful some of them will be but I figure it'd be a good idea to write them down, for my own sake.

- Volatility is not the same as risk.

- The best time to be very careful is when everything is working out extremely well. It's possible to get complacent and lose it all.

- If you're scared of selling when the market is going your way in an unstable time, get out of the market.

- To be a successful trader, three things are needed: effective trade selection process, risk control, and the discipline to follow the previous two.

- If you start making a lot of mistakes, take the day (or few days) off from trading.

- Write down the reasons why you made a trade. Helps with checking for errors in your reasoning.

- CANSLIM:
   Current Earnings (compared to same quarter from last year)
   Annual Earnings per share (each years earnings should show an increase from last year)
   New (whether there's a new product, service, change in management, change in industry, or even a new high price)
   Shares outstanding (I think the lower is better but not clear on this bit)
   Leaders or laggards (pick the leaders and not the laggards)
   Institutional backing (good if the company has some but not too much of it)
   Market (3 out of 4 stocks in the same market will move in the same direction of a significant mover. Need to track all 4 to have an idea of when the market has topped)

- The more % of your capital you risk, the more volatile the results.

- Always have a stop order in place. Just in case the shit hits the fan, you'll be able to run out the door before getting covered too much.

- If thinks are looking bad, get out of that market. Even if you might think it'll recover.

- If you're not sure about a stock, don't buy it. If you already bought it, sell it and wait for another day or time when you understand better.

- Learn to trust your own judgment instead of just listening to others.

- Brokers know less than traders. Expect to lose money if you listen to a broker.

- If you don't understand why something is happening to a trade you made, get out of it.

- The less observed a market, the better a trade...for currencies. Can be more expensive though.

- Risk management is very important when trading. Knowing when to cut losses is more important than knowing when to sell for max profit.

- Set a trading rule about losses and follow it through. No ifs or buts!

- If a big loss occurs, back off and stop trading to let your head clear up.

- Analyze the trades you do correctly as much as the trades you do incorrectly. Heck just analyze them both fully.

- Learn trending systems...it's good to know just in case.

- Stay with the winners and get rid of the losers.

- If you make a system, don't doubt it. Like flipping a coin to pick between two choices. IF you went far enough to make a system, trust it (unless it loses consistently of course).


Biggest point seems to be on reducing the amount of risk. Another big point is not to sell a winning trade too quickly it seems. I definitely still have a lot to learn.

Monday, 6 May 2013

Backburner

Going to put some of the financial stuff I need to learn on the backburner for now. I want to focus on making myself an exercise plan to improve my fitness level first. Too much belly fat on me for my comfort. Still reading e-books about finance though while traveling.

Friday, 3 May 2013

Nothing to do with trading exactly...

But I did find out that I have some Magic: The Gathering cards that will go up in value if they were to go out of print. Going to hold onto it and try my best to keep it in good condition and see how much I can get for it once it becomes a rarity. I doubt it'll be as much as the beta version of the Black Lotus but who knows.

Didn't really do too much otherwise. Read more of The Market Wizard book on the way to my friend's place and back is all. At least in terms of completing my goals.

Thursday, 2 May 2013

Just a reminder...

Go through the school of Pipsology twice before trading on the Spot Forex.

Just in case.

Achievement Unlocked: Debt Consolidation 1

Alright. The debt on my mothers credit cards have been consolidated by my line of credit. I guess phase 1 of eliminating household debt is complete. Phase 1.5 will be trying to convince my dad to cut his spending through credit cards and consolidate his debt (though it'll have to be through a different company).

The total debt paid came out to a little over $8000. My mother will be paying $250 a month to my LoC, which has an interest rate of Prime + 3%. I'll probably add more on myself to get rid of it faster. Sooner the LoC gets paid off, the sooner phase 2 will be complete. Phase 3...will probably be the mortgage.

For now, to see what my dad uses his credit cards for...this Saturday. Until then, I'll keep him wondering if I'll do anything or not ;)

Edit: Small correction. The total debt came out to be almost $7000.

Wednesday, 1 May 2013

Current Investments

Figure I might as well post a rough bit of this to keep track of where I am currently.


Right now, my portfolio is not very diverse at all. Luckily, the level of risk with my current portfolio is less than 1% (my opinion anyway). I'm pretty much invested in two of the big banks in Canada and the focus is on dividends. The plan for this portfolio is to slowly get enough into each investment so they make enough in dividends alone to buy more shares of themselves.

Welp, I still need to figure out what the difference between DRIP and DPP is. That I can easily do before I get enough to activate either plan luckily. But before that, I want to get rid of the debt that's been plaguing my family. More on that as it happens.

Plus...it's not like I have a great income or anything :p

First post!

So, I've decided to start my blog to keep track of my finances. Or at least my financial plans. I think I'll post "lessons" that I've learned that I feel are important too. As I learn them anyway.

My long-term financial goals:

- To earn an active income through trading
- To have the time to pursue my other hobbies freely

My Short-term financial goals:

- Eliminate household debt (mostly for my mom as my siblings SHOULD be able to handle themselves)
- Setup my investment portfolio in a way that it is self sustaining
- Learn how to reduce risk when trading
- Learn how to trade in markets other than equity
- Change to a different broker...sometime soon.



My long-term goals obviously won't change for quite some time. But my short-term will change as I achieve them or think of more to add on.

I think that'll do for a first post.