Stock Picking - Straight Gambling

[reno cool]

I'm gonna start dabbling. I need a more societaly respectable income of a speculator

 

[mrquincy]

Matty. Are those are non-registered mutual funds? I already have a self-directed RRSP so I am not looking for any more of that type of thing. I am only looking for 1-5yr investments

 

[Matty]

No MrQ - those index funds are rolled over in your TFSA. Also, when you buy these TD US funds, you avoid the tax on foreign dividends. Everything is taken into account in the fund's price. Just buy and hold. Tax-free through and through.

 

[mrquincy]

That's what I thought...It looks like a pretty solid way to start out.

 

[Matty]

: That's what I figured, and that was confirmed to me by our planner (who's in a similar situation, and around the same age as us.)

 

[Tron]

Matty, GAMBOL.

 

[Boner_18]

God. Saving for retirement and investing conservatively for the long haul gets my dick hard.

 

[FairWarning]

I'm gonna start dabbling. I need a more societaly respectable income of a speculator

Hell has froze over. Reno will be betting on American billion dollar corporations.

Welcome to America.

 

[Matty]

God. Saving for retirement and investing conservatively for the long haul gets my dick hard.

If I ever reach that stage, someone please shoot me in the face.

Boner I might buy a Turkish ETF to hedge the woman's heavy reliance on Canadian stocks. Turkey is predicted to benefit if oil stays low.

I don't really know what I'm doing.

 

[Boner_18]

Whatever you buy make sure the management fees are as low as possible. With an index etf (compared to actively managed mutual fund) the fees should be closer to zero since the holdings of the fund are dictated by rules laid out in the prospectus (compared to a fund managers discretion). If you were gonna bet on Turkish soccer wouldn't you wanna get the lowest vig #?

 

[Boner_18]

You should just buy into TDB908 (Nasdaq 100). Both Activision and EA are in it.

No transaction fee so you can add as little as $100 every paycheck or something.

Index funds rock for small-time guys like us.

This is good, good thinking. Make sure you don't simply pay it back in the management fees though. Many places just bury the charges in management fees... But still many DO offer these low/no fee indexes as a benefit to customers.

 

[Matty]

Yah yah. TUR (tee hee) has a 0.62% MER. That's higher than most domestic index funds, but still way below actively-managed funds.

 

[Matty]

This is good, good thinking. Make sure you don't simply pay it back in the management fees though. Many places just bury the charges in management fees... But still many DO offer these low/no fee indexes as a benefit to customers.

TDB908 has a 0.51% MER. The other fund I'm buying into, TDB902, has a 0.35% MER.

 

[Boner_18]

I usually (arbitrarily) think of 1/2% as the reasonable mark... If you're looking for a good fixed incomish allocation look at PFF. I've mentioned it in this thread before I think... It's preferred stock which pays a high yield but is between fixed income and equities in terms of volatility... Reinvest the dividends and let it ride.

 

[Matty]

Will look at PFF. I just opened a $US component to my account so I can buy US stuff without converting currencies every time.

Matty, GAMBOL.

GAMBOOOOOOOOOOOL

 

[Matty]

I'm looking at inverse ETFs and there's something I'm not getting - if I buy into both a NASDAQ index fund and an "ultra-short" (3x) inverse-equity ETF like SQQQ, how can I lose money?

I'm probably misunderstanding the "3x" part.

 

[Boner_18]

Well if they were equally allocated (which they probably aren't) and they settled the same (they probably aren't - 2x's and 3x's generally rebalance daily) you would lose 2x the value of the NASDAQ when the index goes down... Did I miss the question?

 

[Boner_18]

Because of the daily settling issue the 2x/3x ETF's are generally considered terrible investments beyond day/swing trading or portfolio risk management.