The Transparent RRSP: Post #15

Actions taken the week of April 3
  • I deposited $150.00.
  • I bought 25 shares of TransAlta (ticker symbol TA.TO) for $7.63 per share. This cost me $190.75 + 0.25 cents in commission which makes it $191.00 altogether.

This leaves me with $21.90 in cash. Penny stocks, anyone?

I bought shares of TA because the monthly chart caught my eye. The daily chart displays a long consolidation that shows this stock has been trading in this price range since late November. I had been checking this stock out for a few months now. I never took action because I wanted to wait for a better setup on the monthly chart. The weekly chart is a little sloppy, but I’m not as concerned because of its strong monthly chart.

ta

TA price charts on freestockcharts.com


I’ll just mention that for my TFSA, I bought some shares of TransAlta Renewables (a subsidiary of TransAlta, ticker symbol RNW.TO) at $15.73. I feel like I was late to the party for this one. I just kept missing the good entries. Its price moves are around $2 in range (as you can see from the arrows on the chart below). This stock has already moved up $1.30 since its last selloff in early March. If this goes up from here, it’ll probably stall at around $16.50. We shall see.

I’m not thrilled about the monthly chart; however, the daily and weekly charts, volume action, and monthly dividends made me want in. I like subsequent consolidations because it shows a lot of consensus among investors in price areas just below my entry. This is what traders call ‘support’ because if the stock does fall below my entry point, it’ll likely land softly around the $15.00 area where a lot of people have been buying shares at since January. I’m counting on strength in numbers to hold this stock up.

rnw

RNW price charts on freestockcharts.com

The market was positive this week. If nothing out of the ordinary happens (politically/economically), the market will likely trickle up for the rest of the month.

 

2 thoughts on “The Transparent RRSP: Post #15

  1. I do look forward the Transparent RRSP posting and enjoy reading it, I would like to put forward an idea, being member of the crinkly generation not devoting to much time to long term investment growth, but I do think you young folks should take a series look at this opportunity that we maybe witnessing now. Think of TOBACCO, who made a fortune in it , Tobacco farmer, cigarette manufacturers, distributors, retailers ? lots folks got rich in it. Think about cannabis, are we in the infancy of this industry ? are we at the ground floor? could we be saying ten years down the road, WE SHOULD OF WHEN WE COULD OF. or do this have a place in a RRSP. This product have a fare wider user base then cigarette ever had , recreational, medical, some one may have ethical or personal reason not to invest in this field ,one need not waist any time researching ,but from an investment prospective time spent learning and understanding the business end of it and invest in the right place in it could potentially have a huge reward for a long term investor.It is only couple of year old, ten , twenty years from now could look like a smart investment.

    Steve,

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  2. Great points, Steve. I actually do own quite a few medicinal cannabis stocks. Some of which are flat or a bit down, and others doing really well. Around this time last year, I wrote a blog on it and listed four stocks, all of which are now doing extremely well. At that time, I bought shares of Aphria and dedicated my whole stock picking video using its chart because it trades well. I feel like you could teach a whole technical analysis course using APH.TO! It is now trading on the TSX (last year it was on the venture). It’s interesting to look at what happened in the cannabis industry in Colorado. It started out saturated with a lot of pioneers, but it’s narrowed down since. It’s interesting to see who succeeded and who didn’t. I will do an anniversary blog on April 20 and talk a bit more about my own findings.

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