Wednesday, September 30, 2020

Avoid big loss: Define big loss - over $50 dollars is a big loss

 Sept. 30, 2020

Introduction

I have to learn how to control my gambling behavior, set stop loss early; Do not worry about missing Canadian oil stock rebound. I need to set $50.00 dollars stop loss for each bet. 

MRO 1000 shares on Sept. 28, 2020

I had over $180 dollars loss on MRO 1000 shares

I like to work on research how to stop loss with small amount. Otherwise I will lose my capital quickly. I have to learn how to stop loss early with small amount. 

Do not think about betting on big amount like 1000 shares for MRO, and also I need to check 5 days range of MRO stock first. What is range of swing when I like to make purchase? Use the range to determine how many shares I should bet on. 

For example, I like bet on MRO when price was $4.34/ share, five day minimum price is $4.06, so I need to take risk of $0.28/ share. If my limit of one bet is $50 dollars, then I should at most purchase 200 shares. If I do not set stop loss, then I may lose $50 dollars. 

Actually I bet on 1000 shares. The loss will be $280 dollars. 




Actionable Items

Bet on small amount. Try to have loss, loss, loss and big win. I need to learn how to stop loss early, and then catch big rebound if needed. 

I also record the video and here is the link on my youtube channel. 

I also record the video in Chinese to share my thoughts for my future to review. Here is the link.

SU.TO stock: Suncor (TSX:SU) Stock Price: Headed Higher in October?

 Here is the article. 


MRO stock: 1000 shares of MRO purchased on Sept. 28, 2020

 Sept. 30, 2020

Introduction

It is my short drill to practice how to hold 1000 shares of MRO stock. I like to write down something to remind me to learn something from my USA IRA account. 

MRO stock

It is easy to buy and sell since the volume is over 10,000,000 each day. I am not sure why so many investor buy and sell every day. 

I also think that oil price is low right now. If I can stay long time, then I should get 10 to 20% return at least. 

It is too many shares compared to the price $4.15. I already has loss 5%. I need to set trailing stop so that I will lose more than 500 dollars on this position, same as I did with SABR stock. 

MRO stock 1000 shares - stop loss

It is hard for me to learn how to stop loss early. I still gambled on Sept. 28, 2020. I thought that it was a good idea to bet on MRO rebound near 10%, so I stepped in when MRO rebounded around 4%, but it did not happen. 

It is important for me to stop loss early when the priced dropped 10cents, so that my loss would be $100 dollars for 1000 shares. If I set stop loss on 5 cents, then my 1000 shares of MRO stock will have $50.00 dollars. 

It is much easy for me to recover $50.00 dollars, but it is hard for me to recover $190 dolloar loss. 

It is hard to resist the gambling thoughts

It is hard for me to resist gambling thoughts. I have to be careful and take small stop loss instead of letting 1000 shares of investment go down almost 30 cent/ share. 


Use five day chart to calculate risk

It is better for me to calculate risk before I purchase 1000 shares of MRO stock. The lowest price is $4.06, so I can calculate the risk is $300 dollars if I do not stop loss early. Actually it is true that on Sept. 29, the price went down $4.06, I was so nervous, and I set trailing stop when the loss was around 5%. 

In the evening of Sept. 29, 2020, I put together a sell order to sell MRO 1000 share at price of 4.34, but it did not happen. 


Sold with $190 dollars loss

I have to learn how to cut loss each time I place a bet. Set stop loss around $50 dollars and make it less than $100 dollars. 

If I continue to bet on MRO stock, then I may end up with loss over $600 dollars. I had loss over $600 dollars on SABR stock. 



ENB stock: Stop Buying Stocks Based on a High Dividend Yield

 Here is the article.

One stock that is frequently thrown around in financial discussions is Enbridge (TSX:ENB)(NYSE:ENB). Admittedly, it is currently listed as a Canadian Dividend Aristocrat, which speaks to its ability to raise dividends year after year. However, this will change soon.

Enbridge currently has a forward dividend yield of 7.94%. This is very enticing to dividend investors. However, a quick look tells us that its payout ratio is 329.36%. That is incredibly unsustainable. Because of the tough economic conditions, Enbridge had to cut its dividend. After the cut, its new five-year dividend growth rate plummeted to -2.76%. Not only is its dividend plummeting, Enbridge stock has returned a loss of -20.29% over the past five years, as of this writing.

None of this points to a promising future, yet it remains one of the big stocks among retail investors.


Tuesday, September 29, 2020

How to respect those dividend income on my TFSA?

 Sept. 29, 2020

Introduction 

It is a small research topic for me to look into. I gambled on stock market on August 31, so I lost all my gains from May 2019 to August 31, 2020. I have over thousand dollars dividends, and all other gains. How should I reduce risk, and put some controlling on my gambling behavior. 

Gambling ...

It is the first time I learn how gambling can easily wipe out all my gains, over $6000 dollars in less than two weeks. 

I need to look into gambling issue on stock market. How should I manage myself in terms of gambling behavior. 


Kevin O’Leary Reacts To My $10 Million Dollar Investment | Shark Tank

 Here is the link. 

Stock - 

No stock more than 5%, correction hits, take out profit by trimming

Mass correction - Never work on margin!

2.9 million dollars - Kevin asked the question: Can you take the hit? 

Kevin:

Point of life, I don not have debt. I do not have any obligation for anybody. 

A lot of down cycles. A lot of my friends were wiped out. Do not respect the debt. 

Watch, divorce, boats, etc. - 

One asset class - Do not be over 20% of your asset. 

Do not be taken out of business. 

Do not take big hit if corrections hit. 

Brute price for it. 

Be ready to be wiped out. 50% chance to be wiped out. 

Operator 8, portfolio manager 6 to 7. 

1000 stocks - pay me



Square stock: Who Are the Top Square Competitors?

 Here is the link. 

Square dominates the mobile payment-processing industry, handling $26.8 billion in payments for the second quarter. It’s an industry titan, but Square isn’t the only mobile processing player in the game: There are Square competitors.

Indeed, mobile point-of-sale (POS) systems are on the rise. While certain industries, such as food trucks and fast-casual restaurants, utilize mobile payment processing more than others, the benefits of these systems are ideal for businesses in many industries.


Square stock: 5 Top Square Competitors for Small Businesses

 Here is the link. 

Seeking Different Fee Structures

Square’s fee structure might not fit with your business’s needs. Square’s fees will currently cost you as follows:

  • 2.6% + $0.10 per magstripe, chip, or contactless payment with any of the Square hardware options
  • 3.5%  + $0.15 per keyed-in transaction

Ultimately, with the same flat-rate across all of their devices, Square’s payment processing fees are better structured for businesses who want simple, easy to understand fees and make mid-sized transactions.

Square competitors, on the other hand, offer default fee structures that are better suited for larger transactions. For instance, Intuit GoPayment’s default payment processing fee is 2.4% + $0.25. With a lower percentage rate, despite the higher added cent fee, Intuit GoPayment might be more cost-effective, especially with larger transaction sizes.

With PayPal Here, on the other hand, their default payment processing fee is 2.7%, which while very straightforward, will generally be more expensive for your business, unless you have very small transactions. Therefore, if your business typically deals with transactions on either side of the size spectrum—either very small or very large, then a payment processing fee structure other than Square’s base 2.6% + $0.10 might be a better fit for your business.


AAL: Mass layoffs and smaller airlines loom after COVID-19, even with more aid

 Here is the link. 

I spent eight minutes on video, so I can learn better about situation. I like to continue to purchase AAL stock in short term. 


At stake are scores of jobs linked to an airline industry that’s been decimated by the crisis. American Airlines (AAL) plans to lay off roughly 20,000 employees while United Airlines (UAL) is furloughing about 16,000.

Southwest (LUV) and Delta (DAL) have stated they will be able to avoid most layoffs through the end of the year, but may have to furlough employees in 2021. And CEOs from all four of the carriers have called on Congress for additional aid.

Delta Air Lines says roughly 40,000 employees have taken leaves of absence of various lengths. Delta had 90,000 employees before the pandemic, but with buyouts and retirements has reduced that number to 75,000.

In a regulatory filing last month, American said that with layoffs, retirements and voluntary leaves of absence, the company “will have at least 40,000 fewer people working October 1 than we had when we entered this pandemic.”

In its most recent earnings report, United Airlines said 6000 employees took a comprehensive voluntary separation package which included flight benefits and continuous pay through Nov. 30.

NCLH: Norwegian Has Already Priced In A Recovery

 Here is the article. 

massive rallies and selloffs in the stocks in the group become the norm, including Norwegian (NCLH)

Shares in Norwegian have carved out a channel between $13 and $19, give or take, in the past few months, following a spike to $27 in June. We find the stock at just about the midpoint of that channel now, so I won’t opine on the near-term direction of the stock, as anything could happen. However, longer term, I have some concerns about the group in general, and it appears to me Norwegian may be priced a bit optimistically.


Monday, September 28, 2020

SU.TO: I did not do good homework last Sunday night

I have to work hard in order for me to make a living in expensive city Vancouver. I do like to live big urban city, but I have to overcome my hurdles to shame as a short term trade. I did not plan very well to catch rebound on those oil stocks I like to purchase. 

I lost over $6000 dollars from August 31 to Sept. 25 on those stocks. I should get back in to catch some rebound. Although it is small one since I got up at 7:00 AM, SU.TO already has 3% rebound, maximum one is 6%. 

I know that it is so risky to play with computerized institutional buyers, but I have to take chance. I lost so many dollars on capital values. 

 



MRO stock: 1000 share purchase - market price

I purchased 1000 shares of MRO stock, market price is 4.28, but it ended up with 4.34. So it is the second time I learn the lesson to pay more. What I see is not what I got. 

I also need to be careful about good faith violation second time. I just sold those position last Friday, those transactions are not settle down. I can purchase MRO using $4000 out of $15000 dollars, but I have to keep it at least two business day until MRO settles. 

USA provides good platform for trading, no transactions, and it is best tool in the world for us to build wealth. 

Also wall street is trustable and let market reasonable rebound today on those oil stocks. 



Case study: Good faith - FB stock purchase violation incident

Sept. 28, 2020

Introduction

I planned to work on MRO and OXY stock purchase and then set up trailing stop this morning. And I noticed that I got one violation recently. If I have another two violations, then my good faith will no longer available. It is my retirement account in USA. I have to spend time to work on case study for FB violation incident. 

My purchase history 

Here is my violation letter. 

I do believe that I learned to practice trailing stop, and then my account did not have cash available since those sold INTC 200 shares on Sept. 8, 2020 not settled until two business day. 

Based on good faith, I could use those cash to purchase FB and MSFT stock, but I sold it in less than two business day. INTC 200 shares not settled yet. 

I need to plan better again with those trades carefully. 




Good faith violations: I need to remember the rule before I work on investing again

 

Dear Jianmin,

 

We are contacting you because you had a good faith funding violation in your account yesterday.

 

What Is a Good Faith Violation?

 

A good faith violation occurs when you buy a security in a cash account, then sell it before paying for the initial purchase in full with settled funds. (The standard settlement time is two business days after a trade, but this can vary depending on the product traded.)

 

The Federal Reserve Board's Regulation T requires that either a cash account has sufficient settled funds to make a purchase, or TD Ameritrade accepts in good faith that the client will make full cash payment for the security or asset before selling it.

 

In this instance, you purchased FB with unsettled funds. We accepted that purchase in good faith that you would make full cash payment for the security before selling it. However, that security was then sold (the transaction listed below) before the funds from your original purchase had settled, and this caused the good faith violation.

 

Trade Date: 09/09/2020 08:32:18 AM

 

Symbol: FB

 

What Are the Consequences of Good Faith Violations?

 

If you incur three good faith violations in a rolling 12-month period in a cash account, your account will be restricted to settled cash only. That means you will only be able to buy securities if you have enough settled cash in the account before placing a trade. This restriction will be effective for 90 calendar days.

 

Avoiding Future Violations

 

·         The best way to avoid future good faith violations is to avoid trading patterns that would lead to one.  For examples of trading patterns that create cash account violations, please see our article in The Ticker Tape.

 

 

·         Good faith funding does not apply to margin accounts. 

·          

·          

·         If you do not already have a like-titled margin account* at TD Ameritrade, you can apply to have your account upgraded with margin privileges. To do this, go to Client Services > My Profile > General, then (under "Elections & routing") click "Apply" next to "Margin trading."

·          

·          

·         If you already have a margin account at TD Ameritrade, you can combine your assets into that margin account. To do this, log in to the account without margin privileges and go to My Account > Deposit & Transfers > Internal Transfer, then select "Transfer now" (to the right of "Transfer between TD Ameritrade Accounts").

 

We're Here for You

Sunday, September 27, 2020

The surprising habits of original thinkers

 Here is the link. 


New roommate: dirty bitch - today I spent two hours to clean kitchen oven and fan

 Sept. 27, 2020

Introduction

It is special time and hard time for most of people. I tried to be considerate, and I talked to a sale person at work. He told me that every one is different. I know that people work until midnight, compared to her, I have easy life to live. 

I can spend time to gamble on stock market. I just did spend hour to clean my bedroom, use paper towel to remove all those spider net, all dusts this weekend. 

Also I spent over two hours to clean the oven and fan. I also have a philippine roommate who likes to cook, pan-fried fish with long time cooking. 

The oil dust was so dark before I cleaned today. I need to earn some respect from the roommate. As a Canadian citizen, I am shamed to be poor and could not afford my own condo. 


Why I do not have time to look for those stocks to invest? Docusign, Square, high technology stocks

 I like to look into this issue. Why I did not choose to invest those stocks like Docusign from March 27 to Sept. 27. 2020. 

I like to look into this issue since I compared to my friend I knew near 20 years, who also invests into stock market 20 year who is a retired engineer. 

I like to look into my thinking process. I like to make some improvements. 


CVI stock: My 10 shares from June 8 2020 - Sept. 26, 2020

Are you a giver or a taker?

 Here is the link. 

Top performance and lowest performance - givers 

not good, burnout - low performance

highest performer - giver 

Five-minute survey 

Set boundary - Successful giver - need to figure out how to be givers

Takers - 

Adapt to be agreeable 

Agreeable/ Disagreeable

Giver/ Taker



Linkedin following Peng Wu: How to get better at the things you care about

 “Why do most people work very hard for a long time but do not get any better?” This TED talk gives the answer. Many of us focus all the time on performing, but not enough time on (deliberate) learning. https://lnkd.in/dPk8Yth

Here is the link. 

Performance zone 

Learning zone - one day in a week, learn things new, do something about learning. 


Learning zone vs performance zone 

opportunity to improve 


Square stock: Is Square a Buy Even If the Stock Market Crashes?

 Here is the article. 

Square (NYSE:SQ) has been one of the top-performing stocks on the market in recent years. The mobile payment company's stock price has returned more than 1,100% over the past five years, and this year it is up more than 150%. Square has been a growth machine, pandemic or no pandemic.

With such strong growth, it has attracted a lot of investors -- and a lot of expectations. At Friday's close, its price-to-earnings ratio was a ridiculously high 245 and its price-to-book-value an astronomic 34. Is Square primed for a correction if the tech bubble bursts? And if so, is it still a buy today?


Two hours talk: IBM retired engineer as an investor

 Sept. 27, 2020

Introduction

GE has 20 billion pension liability. Same as IBM, a lot of retirees have pension plan with IBM. I like to take some notes and the look into more carefully later as an investor. Because of privacy, I do not know too much detail about IBM retired engineer and how he invests stock market. 

Highlights 

Here are some highlights:

  1. Buy square stock, went up 200%, but miss another 100% gain. Total 300% gain
  2. Watch CNBC 4 PM eastern time analyst TV show
  3. Follow Jim Cramer's purchase, paid service. There is price up after Jim Cramer's purchase
  4. Do not purchase oil stock
  5. Do not do day trading, work on long term
  6. There is pullback at the end of October
  7. Diversification - 401 K, and individual stocks as well
Questions he asked me: 

  1. Why do you like to purchase oil stock?
  2. Why do you like to do short term trading like day trading?
  3. Why do you like to gamble on short term - investing on stocks? 
  4. ...

SPG stock: My 10 share story

 Sept. 27, 2020






Trip stock: My 10 shares journey

 Sept. 27, 2020

Introduction

It is easy for me to measure if I am a good investor or not. I only need to check my 10 shares of Trip, if I do anything on the position last three months. 

Trip stock

I like to build a portfolio using Yahoo first today. And I need to decide what to do with those 10 shares. There will be another 20 - 30% pullback. I should sell those 10 shares at highest price around $24.00 dollars. 


My purchase

From August 24 to Sept 27, the price drops 20% from $24.56 to $19.32. 



Sabr stock: Why I lost near $900 dollars from June 8 to Sept. 26, 2020

 Sept. 27, 2020

Introduction

It is good practice to learn how I should choose stocks to invest. I did learn lesson from investing SABR stock. I lost near $900 dollars, and I like to write down lessons I should learn. 

Sabr stock performance


Here are lessons I learn:

  1. Do not think about long term. SABR stock is good to invest on long term, but short term swings will scare the investor like me away;
  2. I purchased highest price on June 8 at $10.43, and then continued to purchase 10 days at price $8.315. 
  3. I should not add more positions in less than 30 days. I could not tell how much lower the price should be. It should be at least 30 - 50%. 20% is nothing to relate to technology stock related to coronavirus infected business - travelling. 
  4. My friend advised me to move on Amazon stock in June. 
  5. Do not judge the stock by price, cheaper is not good. Check growth and how many investors bet on short term;
  6. Do not buy $3000 for one stock. I could not handle the stress of $3000 dollars. The losses was hard to manage. 
Time to spend on stock investment

I should ask myself if I learn something about investment experience. I do learn but not too much. There is not too much about companies information for investors. I did learn about Texas headquarter, but other than that, I did not learn enough compared to my loss and time spent on investment. 


I have to think about alternative technology stocks, like EXPE, Zillow, Oracle, or Docusign, cloud solution, Facebook stock etc.

It is the same problem to show up in my other area of life experience. I do not pay attention to the gap I have compared to other investors. I need to expedite my research and catch up more before I make decision. 

My decision making still has flaws. I should learn when the market is too high, on June 8, all my losses are recovered. And I have over $3000 dollars gains. I should wait at least one month, and take $3000 dollars to invest and it is time for me to learn how to play stock market using small amount. 

From all my life last 30 years I should learn how to measure the risk, how long it takes me to learn something. Management risk is always important for me to be successful. 

INTC stock: Why I lost over $500 dollars from July 24 to Sept 27, 2020

 Sept. 25, 2020

Introduction

There is another 20 - 30% market pullback in next two months. It is better for me to review my skills to invest on stock market. I like to change topic to "Why I lost over $500 dollars from July 24 to Sept 27, 2020". My original post is the following:

INTC stock: Why I could not make some profit from INTC stock?

 Sept. 27, 2020

Introduction

As an investor, I lost over $600 dollars to purchase and hold on SABR stocks, but compared to SABR, INTC stock is much stronger one with good moat. I still lost more than $500 dollars. As a beginner, I like to write down what lessons I should learn from my experience. What should I do in the next few months as an investor. 

Yahoo finance -> Portfolio


Lessons I should learn 

Here are highlights:

  1. I should control the position size. I did purchase 170 shares of INTC on July 24, 2020. But it went down another 10% and lasted more than one month. 
  2. More on step1, control on building INTC position, using pyramid strategy for example.
  3. After more than one month, the position recovered, and then I sold them with $50 dollar profit;
  4. On Sept. 2, 2020, I got in the position with highest price $52.566. 
  5. I got brain washed since I read Intel buyback 20 billion stock plan; I purchase too many shares once and too high the price. 
  6. On Sept. 8, 2020, I sold low which was too low, $49.23, more than $600 dollars. 
  7. I have to control the timing. Do not sell the shares at too low price. Do not panic. 
  8. Sept. 2 to Sept. 8, market swings - I need to study pullback and learn basics about pullbacks. 
  9. Need to work on planning how to recover loss over months and years. 
Actionable Items
9/27/2020 10:49 PM
Because I do not know how to time the market, I should not purchase more than $3000 dollars for one stock. Usually I will purchase at highest price since I am a beginner; Once I recover loss, I feel relax and then I will purchase a lot. I am an impulsive buyer. 

For example, on Sept. 2, 2020, I purchased 200 shares of INTC stock at highest price in last two months. 

INTC stock: Why I could not make some profit from INTC stock?

 Sept. 27, 2020

Introduction

As an investor, I lost over $600 dollars to purchase and hold on SABR stocks, but compared to SABR, INTC stock is much stronger one with good moat. I still lost more than $500 dollars. As a beginner, I like to write down what lessons I should learn from my experience. What should I do in the next few months as an investor. 

Yahoo finance -> Portfolio


Lessons I should learn 

Here are highlights:

  1. I should control the position size. I did purchase 170 shares of INTC on July 24, 2020. But it went down another 10% and lasted more than one month. 
  2. More on step1, control on building INTC position, using pyramid strategy for example.
  3. After more than one month, the position recovered, and then I sold them with $50 dollar profit;
  4. On Sept. 2, 2020, I got in the position with highest price $52.566. 
  5. I got brain washed since I read Intel buyback 20 billion stock plan; I purchase too many shares once and too high the price. 
  6. On Sept. 8, 2020, I sold low which was too low, $49.23, more than $600 dollars. 
  7. I have to control the timing. Do not sell the shares at too low price. Do not panic. 
  8. Sept. 2 to Sept. 8, market swings - I need to study pullback and learn basics about pullbacks. 
  9. Need to work on planning how to recover loss over months and years. 


How investors can position themselves to prepare for a possible market pullback

 Here is the link. 

It's been six months since the March 23 lows and markets appear to be making a relatively steady comeback. Jim Keenan, global co-head and chief investment officer of credit at BlackRock, and Gabriela Santos, global market strategist at J.P. Morgan Asset Management, join "Squawk Box" to discuss whether the market recovery will last and how to be positioned for what could come next. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi


Saturday, September 26, 2020

SU.TO: Institution buyers

 Here is the link.