Investing

[Merged] Another bloody red day on the TSX

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  • Oct 29th, 2023 1:48 am
Deal Addict
Mar 16, 2015
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brother_bruce wrote: Not only is the decline leading to below yesterday's close; the decline is accelerating. So much for the promised rally...
Well when it was going up in the morning time.... All pundits were praising the US of A like anything...Truth is these Big investor firms do not have any ethics what soever.... What they ask the retail investor to follow , they do not follow themselves....They made their money for today and then dump it....
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Jun 10, 2008
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very definition of nosedive for US stocks after 3 pm (looking at the graph, lol)... wonder how soon TSX will react to it.
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Oct 9, 2008
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CocoJambo wrote: Well when it was going up in the morning time.... All pundits were praising the US of A like anything...Truth is these Big investor firms do not have any ethics what soever.... What they ask the retail investor to follow , they do not follow themselves....They made their money for today and then dump it....
Everyone talks their books. Media is paid to be entertaining, not informative.

Whether or not the average retail investor chooses to stick to their own investment strategy and risk tolerance or not instead of lightening to the noise; is solely at the individual investor's own discretion.

For better or worse, without a strategy emotions will always make a decision for you. Fear, Greed and Hope will always win if you don't have a strategy and follow through with it.
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Mar 16, 2015
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Jeenyus1 wrote: Everyone talks their books. Media is paid to be entertaining, not informative.

Whether or not the average retail investor chooses to stick to their own investment strategy and risk tolerance or not instead of lightening to the noise; is solely at the individual investor's own discretion.

For better or worse, without a strategy emotions will always make a decision for you. Fear, Greed and Hope will always win if you don't have a strategy and follow through with it.
There is no strategy dude....
What rodbarc does is great but that takes a lot of work and effort and not everyone enjoys doing it either....
Only strategy seems good like is - Buy VFV or VUN and convince your mind that you never had that money ... Look after 15 years.....

If we call that 'investing'.... sorry it is not , it is glorified name for gambling...Just that only the long term gamblers actually win....All these financial jargon are to convince people that it is not a gambling.
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Sep 8, 2007
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Way Out of GTA
The Buy the spike this morning buyers got schooled, the sell the dip sellers yesterday morning got schooled...Wild times!
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Apr 21, 2004
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CocoJambo wrote: There is no strategy dude....
What rodbarc does is great but that takes a lot of work and effort and not everyone enjoys doing it either....
Only strategy seems good like is - Buy VFV or VUN and convince your mind that you never had that money ... Look after 15 years.....

If we call that 'investing'.... sorry it is not , it is glorified name for gambling...Just that only the long term gamblers actually win....All these financial jargon are to convince people that it is not a gambling.
I also think buying common shares it is gambling, akin to musical chairs. It's only not partial-gambling when big fat dividends are consistently being paid out. Debt and preferred shares are different.
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Sep 23, 2014
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CocoJambo wrote: There is no strategy dude....
What rodbarc does is great but that takes a lot of work and effort and not everyone enjoys doing it either....
Only strategy seems good like is - Buy VFV or VUN and convince your mind that you never had that money ... Look after 15 years.....

If we call that 'investing'.... sorry it is not , it is glorified name for gambling...Just that only the long term gamblers actually win....All these financial jargon are to convince people that it is not a gambling.
Emotion and lack of risk management are two top factors that ruins most beginner traders. You are right that trading the market is part gambling, part skill and part luck. The odds however are still FAR better than the Casino! Good traders are born through trial by fire, surviving with the account intact to fight another day.

Remember in the market risk or your loss is something you can ABSOLUTELY control to the single dollar. If you remember this, you can survive any market crash :)
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traderjay wrote: Emotion and lack of risk management are two top factors that ruins most beginner traders. You are right that trading the market is part gambling, part skill and part luck. The odds however are still FAR better than the Casino! Good traders are born through trial by fire, surviving with the account intact to fight another day.

Remember in the market risk or your loss is something you can ABSOLUTELY control to the single dollar. If you remember this, you can survive any market crash :)
Sounds like leverage should be avoided 95% of the time.
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Jan 14, 2009
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alanbrenton wrote: Sounds like leverage should be avoided 95% of the time.
Then the past 5 years must have been that 5% of the time since it has been awesome!
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Dec 27, 2011
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For those saying to pull out because markets are going to keep falling for quite some time, you don't know that. You can't predict these things. If you could, you'd have a trillion dollars right now. But you don't.

You'll be right sometimes and you'll be wrong sometimes. And over the long term, the data says you will likely have "lost" more money by pulling out than you would've "gained" when the markets were declining while you were out.
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Sep 23, 2014
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zakarydoks wrote: Then the past 5 years must have been that 5% of the time since it has been awesome!
Leverage can be used ONLY when you have the right risk management methodology in place. Interactive Brokers for example only charges daily interest rate of (1.69%/365) which is literally free money if you know how to use it well. I am highly leveraged on several high quality US companies for the next 6 months but each of my position is protected 100% by equal amount of options. The most I stand to lose is my Option premium which is minuscule.
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traderjay wrote: Leverage can be used ONLY when you have the right risk management methodology in place. Interactive Brokers for example only charges daily interest rate of (1.69%/365) which is literally free money if you know how to use it well. I am highly leveraged on several high quality US companies for the next 6 months but each of my position is protected 100% by equal amount of options. The most I stand to lose is my Option premium which is minuscule.
My portfolio is leveraged at 60-70% all the time. 1.69% is very cheap. The lowest margin rate I got with iTrade was around 2.75% and I had lots with them. At 60-70% leverage I've only ran into trouble once in 2008, with the great recession plus stupid Blackberry.

My risk management is "look Chris, you know I'm good for it". Most investors will very likely get margin called once or twice in their life time but it is not the end of the world. Build a good relationship with your banker and you do a lot better in life. I'm paying around 4% margin interest now but I'll still stick with iTrade because of the relationship I built with Scotia.
Penalty Box
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Jul 11, 2008
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Away from RFD idiots
zakarydoks wrote: My portfolio is leveraged at 60-70% all the time. 1.69% is very cheap. The lowest margin rate I got with iTrade was around 2.75% and I had lots with them. At 60-70% leverage I've only ran into trouble once in 2008, with the great recession plus stupid Blackberry.

My risk management is "look Chris, you know I'm good for it". Most investors will very likely get margin called once or twice in their life time but it is not the end of the world. Build a good relationship with your banker and you do a lot better in life. I'm paying around 4% margin interest now but I'll still stick with iTrade because of the relationship I built with Scotia.
i guess you guys have your tfsa and rrsp maxed?

i'd love to use margin but mine is not fully maxed out yet!
Penalty Box
Apr 16, 2012
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Greely
zakarydoks wrote: My portfolio is leveraged at 60-70% all the time. 1.69% is very cheap. The lowest margin rate I got with iTrade was around 2.75% and I had lots with them. At 60-70% leverage I've only ran into trouble once in 2008, with the great recession plus stupid Blackberry.

My risk management is "look Chris, you know I'm good for it". Most investors will very likely get margin called once or twice in their life time but it is not the end of the world. Build a good relationship with your banker and you do a lot better in life. I'm paying around 4% margin interest now but I'll still stick with iTrade because of the relationship I built with Scotia.

1. So did you get a margin call in 2008?

2. You are leveraged 70%...aka if you had $100,000, you bought $170,000 worth of stocks?

3. What is your cagr over the years?

4. You are paying 4% interest when you could have paid 1.7%...On a $70,000 margin, that is about $1610 per year that you could have saved.
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Jan 14, 2009
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techcrium wrote: 1. So did you get a margin call in 2008?

2. You are leveraged 70%...aka if you had $100,000, you bought $170,000 worth of stocks?

3. What is your cagr over the years?

4. You are paying 4% interest when you could have paid 1.7%...On a $70,000 margin, that is about $1610 per year that you could have saved.
1. Yes I did.

2. I try to keep my D/E at 60% but I will use more if something looked tempting. Also my D/E will rise quick in sharp drops, for example at the end of July my ratio was 64%, today it is 71% due to August crash. Also when I started around half of my initial capital was student loan money so it depends on how you calculate "debt" lol.

3. If you let me pick the start year date of Jan 2009 :D to the end of 2014 - it is around 40% before taxes.

4. I used to pay less but it's around 4% now. I have not shopped rates for a while but 1.7% is very tempting. I got a feeling Scotia gives me a lower interest rate on my unsecured LoC because of I got most of my stuff there.
Sr. Member
Aug 14, 2010
612 posts
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Toronto
S&P500 and DOW futures down 1.1% VIX up 5%

Going to be another rocky start to the week again?
Sr. Member
Aug 14, 2010
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Toronto
Here we go again. More disappointing data from China. Shanghai down -4.6% Dow futures down -1.8% S&P 500 futures down 2%
Deal Guru
Feb 14, 2006
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Perfect. Been waiting for this...time to buy.

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