Stock and Market Speculation 29 August

Just a short post on what happened on the markets today and how it affected my portfolio and gambling stocks.

Gambling Portfolio

I bought 5000 shares of Trevali Mining today @ 0.81. The stock has been as high as $1.75 and is rising out of a nice cup and handle pattern. I'm looking to exit @ $1.12. The profit on the trade has the potential to be $1,550 if that would happen.

I also bought Linamar Corp (LNR) 70 shares @ $57.71. This is a purchase made as a play on the Canada/US trade negotiations. I'm really gambling here that they get something signed. Linamar has traded as high as $80.58 in the last 52 weeks. I would look to exit at around $75. This would represent a profit potential of $1,210.

I am also holding CGX and OTEX as reported in an update posted here.

CGX is up 6.6% and OTEX is flat.

Other Worries

When my PF starts to approach all time highs, I know a pullback is coming and I get nervous. How severe will it be?

I own nothing but good quality DG companies here in Canada. No high yield junk, no bonds, no preferred shares and very small positions in total market ETFs in my wife's and my RRSP. Holding all cash in small TFSAs. So, why worry?

Well if you've never been through a major market correction then you think you're immune. I went through 2008/09 and it sucked. Will you know when to sell and should you sell?

I only sell stocks that I use for short term trading, like I mentioned above. I will know exactly when to sell them. When they lose 7-8% or when they gain 20-25%.

That's what you call an exit strategy and I stick to it.

Pot Stocks

These are not investments but instead pure speculations. I have no idea why I don't own any as the name of my blog would suggest I should. These would be great stocks to flip and make some short term capital gains.

I was dumb and sold my 300 shares of Aphria for $11.66 on June 14. I lost $47 on the trade. Instead of booking a loss I would be up $1400 on that trade alone. It was a great buy and a really poor decision to sell. This is why I write a blog, so I can document my wins and learn from some of the bad decisions I've made. This is how I learn.

I am determined to hold my stocks until they reach that loss percentage or turn into a BIG win!

Nobody gets rich investing for income. That's better left in my retirement account where I hold all our income stocks.

I NEVER USE MY RETIREMENT MONEY TO TRADE IN AND OUT OF 

STOCKS!

Looking for Saving Ideas so You Can Invest? 

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews based on a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

Have a great day on the markets. What stocks did you buy or sell today?