The week of July 10
- Bought 25 shares of ECN.TO at $4.03. This cost me $100.75 plus $0.25 of commission fees.
It’s hard to tell how much cash is actually available in my account. In May, I bought 100 shares of Mariana Resources (MARL.V). It was acquired by Sandstorm Gold (SSL.TO). My shares were converted and I now have 26 shares of SSL. They also paid me $48.07 in cash for my shares. (I hope that’s not a mistake!) Whenever there are acquisitions, stock splits, or reverse stock splits, my account gets a little wonky for a few days before it works itself out. So far this year, I received $39.35 in dividends. With the $48.07, that’s $87.42 in cash for just having shares – not bad!
This is the chart for ECN.TO:
Charts #1 and #2 are both the daily charts. Chart #1 was what I was looking at on Wednesday evening. Chart #2 is the daily chart that includes today (Friday, July 14). I own this stock already in my TFSA. I considered scaling in, but I thought I’d just buy shares separately for my RRSP account. I liked that this is a company that finances a diverse range of industries; plus its long-term growth potential could be good for my retirement account.
The daily and weekly charts looked good to me – almost too good. The monthly chart doesn’t offer much information because it only goes back to September 2016. I really deliberated over this one.
My intuition/fear told me it’s a setup for suckers. Based on what though? Well, if this had a better monthly chart, I’d feel a lot more confident. I really believe this one will take out the low of $3.87 before it meaningfully trades beyond $4. My intuition isn’t always right. It has no control over the markets or the prices of stocks.
I recognized that if my gut was wrong and this stock went up and I didn’t have these shares, I would be madder for not taking action than if the share price did drop below $3.87. So I bought 25 shares instead of 40 shares (the number of shares I could afford to buy). If it falls in price after my entry, I can emotionally handle it. Whether it goes up or down, if this stock has another great setup that includes the monthly chart, then I will buy more shares.
Trade decisions involve a lot of compromises. It’s an intricate system of balancing your emotions, your reasoning, your intuition, your desire to win, your fear of losing, the information of the stock, the market sentiment, the sector, the economy, how much money you can afford to invest, and how much you’re willing to risk. As long as I don’t risk too much on any one trade, I know I’ll manage in the long run.