Investing

Trading idea- Based on Graham (TSX)

  • Last Updated:
  • Jun 17th, 2018 12:35 am
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Jr. Member
Mar 30, 2017
108 posts
43 upvotes
Hi Rodbarc.

On the first page, you wrote:

"2. Is it too late to follow it? When should I start?
I would personally wait until the next rebalance day to start, and buy its holdings spread equally. Be aware of your comission cost, to ensure that you have enough to trade to make
sense."

By "spread equally" I assume you mean $ value,? So if I have $10,000, it would be $1000 per each of the 10 stocks? If I had an extra lump sum of $2000 or $200/month after my initial investment, how should I invest it?
Member
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Nov 30, 2010
448 posts
186 upvotes
Burnaby
RCOnline wrote:
Jul 19th, 2017 12:04 pm
Hi Rodbarc.

On the first page, you wrote:

"2. Is it too late to follow it? When should I start?
I would personally wait until the next rebalance day to start, and buy its holdings spread equally. Be aware of your comission cost, to ensure that you have enough to trade to make
sense."

By "spread equally" I assume you mean $ value,? So if I have $10,000, it would be $1000 per each of the 10 stocks? If I had an extra lump sum of $2000 or $200/month after my initial investment, how should I invest it?
Correct, divide your initial lump sum evenly across the ten stocks upon the next rebalance date.
However, keep your commission fee in mind if you're starting with a low amount like $10k. Let's say your commission was $5, then you're already down 0.5% + bid/ask spread on each stock. Same thing if you have a lump sum and you plan on adding to each, be mindful of your commission costs.

If you're adding to a few individual stocks, maybe Rod has insight.
[OP]
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Dec 14, 2010
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Slashon wrote:
Jul 19th, 2017 12:20 pm
Correct, divide your initial lump sum evenly across the ten stocks upon the next rebalance date.
However, keep your commission fee in mind if you're starting with a low amount like $10k. Let's say your commission was $5, then you're already down 0.5% + bid/ask spread on each stock. Same thing if you have a lump sum and you plan on adding to each, be mindful of your commission costs.

If you're adding to a few individual stocks, maybe Rod has insight.
This. Spreading the weight equally ($200 on each stock) would be ideal, but if that doesn't makes sense from a commissions standpoint, then alternatively you can add $500 on the top 4 ranking stocks. Ranks are published on the weekend, and you want to wait until Monday to find out if there's further rebalance anyway.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
[OP]
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Dec 14, 2010
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Stats updated on first post.

No transactions expected for Monday - SIS ranking improved, TIH is the next one likely to be sold if the trend continues.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
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Dec 6, 2006
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Toronto
darkcloud8282 wrote:
Jul 27th, 2017 9:39 am
WFT takeover/merger thoughts?
I suppose that's a positive news with the +6%...
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Jun 19, 2009
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Scarborough
It's a shame that WPK has fallen off recently, I guess that contributed to the ranking dropping as well. Decent sized gain on TIH though. Thanks for the update Rod
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Dec 14, 2010
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Stats updated on first post. Expecting to sell CWX on Tuesday and replace it with something else. Monday is Civic Holiday, so TSX will be closed.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
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Nov 9, 2013
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Edmonton, AB
rodbarc wrote:
Jul 31st, 2017 6:48 am
July 31, 2017 signal:

Sell: WPK, TIH
Buy: ADW.A, RCH


Rod
If one just held RCH since it was first purchased by this port in Feb 2015 the annualized returns to date would be about 17% - what are the trading returns on RCH to date?
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treva84 wrote:
Aug 6th, 2017 1:07 pm
If one just held RCH since it was first purchased by this port in Feb 2015 the annualized returns to date would be about 17% - what are the trading returns on RCH to date?
About half of that, although we're comparing apples and oranges - one is investing (long term focused, don't care for volatility or locking profits quickly) and another one is trading (short term focused, care for volatility and locking profits quickly).

There were 3 realized trades for RCH since inception, which produced a total return of 35.14% (12.54%, 9.58%, 11.22% respectively). Presently, it sits at an unrealized loss of 4.13%.

Below are the buys and sells for RCH since inception:

Image

Image


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.

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