The Transparent RRSP: Breakout, Breakdown

The week of December 18
  • I bought 35 shares of TPK.V at $6.55 on December 18. It cost $229.25 plus $0.35 in commissions. There is $11.86 in cash left in the RRSP account.
TPK

TPK.V price chart on freestockcharts.com

Last Monday, I put in a limit order to buy 35 shares of TPK.V at $6.55 and it was filled at that price. I was so glad as it went straight up right after…until it did a reversal on Wednesday. It’s now back to my entry price.

I did the above screenshot the day I bought the shares. I commented on the monthly chart that this stock could trade sideways even longer. Sometimes with these bottoming patterns, you’ll find that there are a few false takeoffs before it really takes off. My hope is that it continues to trade sideways for longer, offering even more entry opportunities to add to the position. That way, if and when it does take off, the upward move will have a better chance of being sustained even longer.

The market didn’t budge much this week and I don’t expect it will next week. Trade volume between Christmas and the new year is usually quite low. There might be a bit of selling, but I don’t plan on making any trade decisions within the next week.


Already people are posting with glee that they’re on vacation. I wish you all happy and safe holidays! I hope to catch up again next week when I’ll be in Vancouver. 

pod-01-011218903256.jpeg

 

Trading this Market

On Monday, JP went through all the Canadian stocks and gave me a list to check out. I went through it and thought the following were great charts:

  • RME.TO
  • FRU.TO (A royalty company.)
  • LCS.TO (A fund)

The next day, he asked me which one(s) I was going to buy. I told him none of them. He couldn’t believe I was just going to sit on a bunch of cash without investing it. Of course, I had some explaining to do. It was very simple: I didn’t like the market. I figured the market was going to offer hokey bullishness all week which it did, ending with a big hoorah day on Friday.

 

Market Monthlies

The XIU, SPY, QQQ, and DIA ETFs on freestockcharts.com

Here are the monthly charts for the Canadian XIU ETF, and the U.S. ETFs: the SPY (S&P 500), the QQQ (the NASDAQ), and the DIA (Dow Jones Industrial Average). There are seven trading days left in this month. If we close at new highs with lower volume, then I will happily wait for a correction next month.

I noted on the charts the months when we last saw a correction or a reset. On the DIA chart, I put a star over March 2017. Even though there wasn’t a proper sell-off/ correction, it consolidated and traded sideways for the following three months, which is often a good setup for another run.

Out of all of them, Canada’s XIU looks the best. If the U.S. markets undergo a correction, then trading Canadian stocks could be the next best play. I’d keep a close eye on the Canadian financial stocks, though, to see whether they reset or have a substantial sell-off that could weigh down the Canadian market.

For the rest of the week, JP kept asking me for my contribution of picks in return. I flat out declared I’d rather sit on cash than to buy anything right now. (Honestly, I was too lazy to look, but we both knew that.) He agreed that although the market looks overbought, sector rotation could keep it churning and that unless something fundamental changes in world economics (like a big war), we’re going to keep going.

I found some charts worth watching over the next week or two:

  • CCO.TO (Needs better setups on daily, weekly, and monthly timeframes.)
  • MX.TO (Could tighten up on the monthly, but decent daily and weekly charts.)
  • ALA.TO (Nice monthly, but it went up a lot already on the daily and weekly.)
  • ATZ.TO (I own this already. This must set up on all timeframes.)
  • H.TO (I own this already. The monthly chart is meh.)
  • DRT.TO (I own this already. The weekly isn’t that clean.)

JP’s picks definitely look better than mine. However, I feel these are worth watching as they had more recent corrections on the monthly timeframe. None of these have great patterns on all their daily, weekly, and monthly timeframes. I find that often when the pickings are slim, we’re due for a correction. By the time the correction or reset comes around, these picks could be even tighter. That’s the benefit of having cash ready and waiting in your account: you’ll be ready to go once the best opportunities are there. You can always afford to be patient.

 

 

 

 

 

The Transparent RRSP: Portfolio Choices

The Week of Oct 2
  • Over the weekend, I deposited $150 into the RRSP. I will have $328.22 in cash in the account as it takes a couple of business days for the transfer to show up in the account.

September was a bit of hectic month for me. Other than scaling into THCX.V, a stock which I already owned in my TFSA, I didn’t do much in the portfolio department. Sometimes you just have to take care of other business before you can properly take care of the business.

Last week, I finished the Trader Training Course with the Canadian Securities Institute. The night I found out I passed, I immediately signed up for the Technical Analysis Course. Even though I read charts all the time and dream about them in my sleep, I always like to read up on the basics. The text and course have been recently updated and I must say, I’m pretty impressed so far with the really clear explanations. I’ve read a lot of other books on technical analysis and this one is the best one yet. It better be because it costs A LOT more!


Now that I will have more cash, I’m considering buying more shares of ZPR. Check it out.

ZPR

Price chart for the ZPR ETF on freestockcharts.com

In the summer, I was curious to see if this would continue trading sideways. It still is, but it could be starting to break out. The worst that could happen is that if the market turns, this one will too after I enter, but I don’t really care. They say you should never have a bias when it comes to your investments, but I can’t help but like this one. I have shares of this in my TFSA as well.

Since it’ll take a couple of days for me to have the other $150 in this account, I’ll put a limit order in for 15 shares on Monday (tomorrow). Once the other cash shows up, I’ll get more. We’ll see how it works out.


Some More Stock Picks

I like the monthly charts for the following stocks:

  • CPG.TO
  • WCP.TO
  • ERF.TO
  • EFN.TO (This one needs another week or so to set up better.)
  • ACB.TO (This could use another week or two to set up.)
  • EXE.TO (I already own shares of this. It needs to tighten up, but I’m watching this one closely.)
ACB

Price chart for ACB.TO on freestockcharts.com

ACB is interesting because it’s a young stock. When you don’t have much to go on for the longer term charts of the weekly, monthly, and yearly, then you have to look shorter term and rely on the daily, hourly, or even shorter intraday timeframes (30 min, 15 min). It becomes more of a risk when you have less historical information to make your decisions on. In these situations, you just manage your risk accordingly. Even though it’s a cheap stock, you might want to buy fewer shares. As time goes on and you have more information and encounter better setups, you can always buy more shares.

I say this because I normally wouldn’t enter a stock that has gone up for six straight weeks as seen on the weekly chart. It would have to have an amazing monthly chart, which this one doesn’t yet because it’s still new. However, the daily chart is great in that is has a lot of trade volume supporting its most recent uptrend. What’s also attractive about this uptrend is that it’s had four pullbacks testing the trendline since it started in late August.

I’m a little hesitant to buy a new weed stock for the RRSP, but I think I will take on a few shares of this for my TFSA.

As always, do your necessary research and only risk what you’re comfortable with!

 

 

 

 

 

 

 

Money Talks

 

Recently, I did a presentation at the Toronto Public Library on investment basics. I had no idea how it would turn out, but I ran through my head a number of best and worst-case scenarios. It was better than I could’ve ever imagined.

I’d never seen a more diverse audience in age, background, and investment interests. Each person was comfortable enough to engage or ask questions – great questions, I might add. To all those who attended, I’d like to offer my deepest gratitude for your participation. This was the conversation I’ve been dying to have with people. This is the type of conversation more Canadians need to have with each other.

Today I’m going to share with you the questions that I can remember. I’ll add parts of my original answers, but I want to answer the questions more fully. These are in no particular order.


How long does it take for you to do your investment research each week?

Now, it’s a few hours a week, anywhere from two to six hours. But I also apply up to 20,000 hours of previous learning and experience. I hope that I can help others enough so that you don’t have to take as long as I did to learn how to invest.

I’d like to also add that many of my decisions result from bouncing ideas off my man, JP. He has put in the time and discipline to learn as well. We have the advantage of combined knowledge and experience. I share a lot of these very ideas in my weekly blog.

As much as I’d like to spend more time doing research and trading more actively, I would become more prone to micro-managing my trades. I’ve done a lot better with a more passive and hands-off approach.

How did you get a 70% return last year?

2015 was a terrible year for the Canadian market. The loonie and the Canadian economy were weak. We patiently waited for the market to stop going down. This happened around late February 2016. We looked for stocks that we knew traded actively and had suffered huge drops in share price. It was a very good time to get into the market. These opportunities don’t come very often.

We bought shares in TECK.B.TO, ECA.TO, BBD.B.TO when they were really cheap, and then in April, bought some APH.V (now APH.TO). We bought a few other stocks, but these few alone did very well after just a few months. We kept selling shares incrementally each time the stocks surged in order to secure profits (called ‘selling into the strength’), but they kept going up. We could’ve done much better had we just kept the shares in and moved up our stops (selling prices). It became a decision between banking on certain profits and waiting to see what will happen. We did a bit of both and we still have shares in all those stocks.

I don’t anticipate as big a return this year, unless the market has a major correction, soon after which there’ll be many more big buying opportunities (a bad and selfish thing to wish and wait for, I know, but…). My US portfolio, though, has been my big winner this year because I had the same idea with US tech stocks last summer.

One of the things I always say is that investors are always looking for new opportunities.

What ETF should I buy?

Many financial institutions create ETFs. Some are:

  • BMO
  • Horizons
  • Vanguard
  • iShares
  • Claymore

When doing your research, consider your investment objective – dividend income, market index performance, sector selection (like banking), fixed income, etc. Also consider the MER, share price, distributions, and frequency of distribution payments, to name a few things. You can look up this information on the ETF info sheet. For me, I only select among ETFs with higher trade volume.

Market ETFs can swing a lot in price because of the demand of traders in the market. So the ETF might be worth more (or less) than its actual value (NAV). Would it make sense to put some money in a market index ETF and some in an index mutual fund (which will be less prone to price swings)?

If you want to invest in the market, consider an ETF or an index fund – or both. The major distinction between these is the MER as it’s a lot higher for mutual funds than it is for ETFs; however, it can be more affordable to buy units in an index fund than it would be to buy shares in an ETF.

An actively traded market ETF can experience more volatility than the actual index it’s based on. Its price will vary based on the demands of buyers in the market. If buyers drive the price up, it’s possible for the ETF to be worth more than the net asset value (NAV) of its assets, so you’re paying a premium in share price. If investors are fearful, heavy selling can drive its price down below its NAV, so it’ll be trading at a discount. For index funds, the NAV is what it is after the market closes. At the end of the day, you shouldn’t notice a big difference between similar index funds, be it an ETF or a mutual fund. (If you do, the mutual fund will likely be underperforming because of the MER.)

What’s most important is that you’re 1) comfortable in what you’re investing in, and 2) you’re not paying too much in fees.

What do you think of mortgage-backed securities?

These have had a bad reputation as these were hugely responsible for the 2008 recession, but mainly because they were deregulated. They’re just bundles of mortgage loans that pay investors interest.

If you’re after real estate income, the REIT (real estate income trust) is great because it can pay investors their share of the distributions which will come from a mix of rent, mortgage interest, capital gains, as well as return of capital. You can also get real estate ETFs. Because of the mixed forms of investment income that come from these, they’re best held in registered accounts. Also, keep in mind the MER. I own a couple of these to add diversification to my portfolio. Other than the value of real estate happening in my own backyard, I don’t really follow the real estate market as much as I should.

What brokerages do you use?

I have opened accounts in the past with Disnat Direct and Questrade. I now have accounts with Virtual Brokers and Interactive Brokers. I’ve been with the last two for years.

What do you pay in commissions per trade?

With Virtual Brokers, I pay 1 penny per share. It’s less if the stock price is under $1. With Interactive Brokers, it’s 1 penny per share, but a minimum of $1 per trade. So if I buy 125 shares, I pay $1.25 plus any market data fees.

Both of these accounts were opened as margin accounts – trading on margin means you need to open with and maintain a minimum amount of cash in the account which allows you  3 times the buying power. So if you open with $25,000, your buying power is $75,000. To attract active traders, the commission fees are very low.

I also have TFSA and RRSP accounts with Virtual Brokers (VB). Thanks to JP’s slick skills in negotiation, we managed to have the same awesome rates extend from the margin account to our registered accounts. Often with registered accounts, you get charged a quarterly administrative fee. With VB, they do charge $25 plus HST unless your account has a minimum of $5000 in it.

I am an active FOREX trader. How should I be doing my taxes every year?

With an accountant. I did our taxes the first couple of years we started day trading. I had the advice of a friend who’s an accountant. She gave me samples on how to calculate the adjusted cost base of securities and their exchange rates, etc. It was actually a really good exercise in learning about taxation for the self-employed and how to factor in fees and expenses; on the other hand, it was a total headache. After that, we started using an accountant who magically does it all in a few days.

What is your take on robo-advisors?

They’re great if you don’t know what stocks or ETFs to buy, or when to sell them. They take away from you the inconvenience of guessing and researching and they make those decisions for you. I’d just be cautious about the frequency that the portfolio is rebalanced and focus on the ones that meet your criteria and charge the lowest fees. As you get more comfortable and savvy with reading the market, you should compare how your portfolio is performing against it and decide then if you might be better off investing in an ETF.

What is your advice for women and their investment choices, especially as they age?

Women have developed a reputation for being great long-term investors because we typically make conservative, less risky decisions. I feel that the financial markets have shifted so that being conservative could work against us in the long-term. Those traditionally conservative decisions, like owning a lot of GICs and low-risk mutual funds, could leave us with less money than what we actually need to have, especially as we live longer and longer. We should be thinking about how our portfolios need to keep generating income as we age. In my opinion, we should consider dedicating more of our portfolio to more medium-risk choices, like blue chip funds or stocks that pay us a dividend.

I know I have a pretty aggressive approach when it comes to making money, but I’m careful with most of my money and more risky with a smaller amount of it (or maybe that’s just what I tell myself and it’s more like half and half). A big part of my own early retirement plan is to live off of dividends, although I still want to make money on capital gains if I have to sell my shares to rebalance my portfolio.

What are good websites that could tell me more about Canadian securities?

I drew a blank – thank you to the audience members for their helpful input. Motley Fool Canada and Retire Happy were mentioned. I also think that Canadian Couch Potato and My Own Advisor are excellent.

You must have a really diverse portfolio?

Yes. It not only keeps things interesting, it spreads and reduces the risk factors within my portfolio. A lot of my trade decisions come from looking at the sector or industry first. That’s why the economy is a big part of my book. I have stocks and ETFs across many different sectors.

I risk very little for each stock, so I’m not worried if it turns out to be a dud (a rare occurrence). After a while, if I like a stock enough, I’ll buy more shares if there’s a new entry (called scaling in).

How do you research fundamentals?

I said I cared about two things: the price I got in at and dividends. I’ll admit, it was a shortcut answer. I don’t pay as much attention as I should to the fundamentals mainly because I learned about stocks from traders who studied price charts and used only technical analysis. When it comes down to it, even if a company’s fundamentals look good, if the stock price has gone too far up or isn’t trading well, I just won’t enter.

I use technical analysis for all my decisions and I apply very general guidelines when considering a company’s fundamentals. One day, I’d like to take the time to figure out how to use both forms of analysis to become an even better trader. For now, I rely on good charts that indicate signs that a trend is about to start; I look at the sector the stock is in; and I compare the stock to other stocks in its sector. Then I cross my fingers hoping that the rest of the market catches on and buys the stock up.


We all have different ideas on what we want to do with our money. There are so many different ways to apply strategies, even between people who have similar takes on risk and opportunity. What I think we all need to have is a general basis of knowledge and from there, we each can branch out and find our own approach to investing.

Thank you, TPL! I had a wonderful evening.

 

 

The Transparent RRSP: Market Timing

Action Taken for the Week of February 28th
  • Deposited $150.00, giving me $150.48 of available cash in the RRSP.

At the time of writing, the net equity in my account is $1771.02. I’ve contributed $1750.00 in total to the RRSP. I’m up $21.01 so far. $2.10 of that is from a ZPR dividend payment received in early February.


The Canadian market has gone up six months straight. The U.S. market has gone up four months straight. On top of that, the trading volume has declined – a sign of the market running out of the steam needed to keep going straight up. There is nothing I would love more than for the market to have a little correction – that is, a little selloff – before going up again for another leg. I would feel more confident in making a new trade if this happened.

 

tsx

The S&P TSX Capped Composite Index Fund ETF chart on freestockcharts.com

 

 

spy

The S&P 500 ETF Trust chart on freestockcharts.com

 

Market timing means timing your trade entries and exits with the stock market moves. It’s more of a shorter-term strategy. When the market is on its way up, you buy. When it begins its move down, you sell.

A lot of people rag on market timing and its futility. I don’t blame them. It’s not easy to estimate and it’s impossible to be right and exact all the time. On CNBC, the analysts and traders always goad each other into making short and long-term predictions and when one is right over the other, they really rub it in! It’s pretty entertaining. It doesn’t really matter because, in the long run (we’re talking years), the stock market generally goes up as it has historically for decades upon decades. Why is this so?

Investors, by nature, are optimistic. You invest because you believe there’s a decent chance you’re going to make money. When optimism shifts to pessimism (due to recessions, world events, interest rate hikes, etc.), investors sell to take their profits or reduce their exposure during a downturn, or as in my case, hold off on making new investments.

So what happens if your market timing is off? Well, if you bought at the height of action before a turnaround, you’ll just have to wait until you’re back in the positive. No matter what, don’t panic. These downturns are more temporary in nature.

There are ways to be impacted less by market timing. The general goal is that over the course of your life as an investor, you’re accumulating assets and creating a diverse portfolio. If your portfolio is diverse enough, a part of it should be performing better than the other part of it during a market dip. When the market is strong again, most of your assets should be doing well. Then, you’ll eventually get rid of the ones that don’t meet your minimum expectations regardless the market and sector. After years go by, you’ll be beyond caring about market timing as most sound securities pass the test of time and should increase in value.

Why do I care about market timing? I simply prefer to take positions at the start of the uptrend. I learned to look for signs that a trend might be tiring out and if I do enter a trade, it’s with fewer shares and moderate expectations. I watch the market enough that I’m able to pay attention to where I’m positioning myself within the trend (at the beginning, mid-trend, near a top).

Before taking another position for the RRSP, I’m going to hold off until later in the month to see if there will be a correction, or if the market will take a bit of a breather that will be more apparent on the shorter time frame of the weekly chart. The only way I’d break this commitment is if I saw a perfect setup (to-die-for charts on all time frames, volume action, sector making a new move, and the market had sold off, yet the stock wasn’t affected).

This is actually a good time to look for stocks in the middle of setting up. That way, I’ll be ready with options when the timing is better.

 

 

 

The Transparent RRSP: Post #6

Actions Taken:
  • Bought 50 shares of Liquor Stores N.A. (ticker symbol: LIQ.TO) at $10.46 this morning
  • 50 shares x $10.46= $523.00 plus 0.50 cents in commission. I paid $523.50.
  • I also deposited another $300 this week because I got birthday money (my parents-in-law tend to spoil me!)
  • There is now $535.60 left to be invested for the next opportunity

Alcohol is a consumer staple that will carry people through good and bad times. For this reason, I believe it’s a good portfolio staple. Right now, what I want to do for this RRSP account is start it off with some solid stocks. I like to think of it as having good wardrobe basics in your closet first before leaping to more flashy and frilly gear!

This wonderful stock also pays a monthly dividend. I own this already in my TFSA at a nice lower price of $7.88. I like it because it pays a monthly dividend (currently at 0.03 cents a share).


liq

It’s possible this could go lower in price. The pattern setups on the daily and weekly charts don’t inspire excitement and confidence in me. I do, however, like the clean setup on the monthly chart. To me, the larger time frame is more important than the shorter time frames. The current entry at $10.46 is close to where it last sold off at $9.80 as indicated by the pink arrow.

In case this stock doesn’t go down and continues higher from this place, I took action and bought 50 shares. If the setup were a bit better, I would’ve bought more shares. 

If it does go down more in price and then sets up again later on with a nice consolidation pattern, then you can bet I’ll be buying more shares!

 

Couples Who Invest Together Stay Together…Right?

Beach Talk

“What do you mean you have a bunch of money just sitting there?!?”

My forever man, JP, one of the calmest people I’ve ever known, had a mini conniption when I casually told him that I had a large chunk of uninvested cash in my TFSA. I had no explanation to offer other than a sulky, “I’ve been too busy to figure out what to get.” Saying that to someone who is busier than you won’t get you far. Thankfully, this conversation happened on a sunny beach in Florida last week, so it wasn’t hard for him to simmer back down in the face of my cringe-worthy apathy.

“Just buy anything that pays a dividend. Buy more shares of ZPR or SPB. Anything. How else are we going to retire in five to ten and live off dividends if you don’t have those shares? You know what to do. All your money should be working,” he gently advised before taking a deep swig of his particularly strong grapefruit juice and returning to his beach reading. 

I couldn’t argue with him about putting your money to good use – I tell people to do this all the time, after all. Now that I’m back from vacation and resettling into my icy reality, I’m ready to hunker down and start looking for stocks again.

We ‘Split Up’ and Went Our Separate Ways

When we were learning about stocks, JP and I started off trading together. However, we discovered the hard way that we often had different ideas that threatened the other’s need to try something a little off-script. We then split our account into two and started to operate separately. As our respective accounts grew, so did the number of accounts. We each now have three trading accounts.

We now share our ideas, but that doesn’t mean we act on them. Sometimes we’ll take the exact same trade, entry and all, but many of our trades are done without telling the other until later. It was when we started making independent decisions that we started to see our respective portfolios truly take off. The reason I think this improvement in portfolio performance happened is because we wouldn’t get shaken out of our positions due to fear of trade criticism.

In chat rooms, I’ve seen traders and investors criticize each other’s decisions. This is why I left chat rooms. People always share ideas and then sometimes scare each other out of taking chances or out of the trades they already took. It’s already bold enough to take a position, the last thing you need is an outside voice to instill fear or add doubt. If you invest from a position of little faith, you will have incredible difficulty at succeeding financially.

Whether or not we totally agree with each other’s stock picks, JP and I support and trust each other’s decisions because we share the same long-term vision. We want to have a second property in a hot place, we want most of our income to come from our investments, and we want to help others learn how to achieve their financial goals through investing.  Most importantly, we want to help each other become better investors.

Moving Forward in Harmony

For 2017, I resolved to be less of a ragtag investor. JP is so disciplined in that he reviews our stock portfolios – mine and his – almost every day and then he emails me (so I don’t misplace it) his watch list of stocks to pay attention to. I have missed many opportunities. Maybe I should just post his lists for my readers?

I am trying to be more organized and watchful of my stocks. I’m working on being more proactive with my investment ideas, and thanks to weekly blogging, I’m getting a bit better at it. It’s only February so I won’t beat myself up over how far I have yet to go. 

There is rarely a completely straight and easy path to any goal, but my conversation with my partner in life and business reminded me that it’s time to get back on track and to contribute more to our joint efforts. Our future beach bum selves are counting on it.

The Transparent RRSP: Post #1

My Objectives for the Transparent RRSP:

  1. To teach and encourage people new to stock investing; and
  2. To make this account grow through regular contributions, market value, and investment income.

My Feelings About the Transparent RRSP:

Nervous and excited! You can buy a stock and be under water for a long time only to have it reverse and become your portfolio’s darling for a long time thereafter. Conversely, you can buy a stock and only ever see grow, grow, and grow in share price. I don’t know what to expect performance-wise, but my plan is to be prudent, strategic, and aware of a new stock investor’s perspective.

Actions Taken So Far:

  • Contributed $1000 to my RRSP through my discount brokerage, Virtual Brokers
  • Bought 50 shares of ZPR at $10.86

Some Points on the RRSP

Here are the main advantages of having an RRSP as long as you keep the money in the plan:

  • RRSP contributions may be deducted from your income to reduce taxation
  • Gains from the investments in your RRSP are not taxed

A big reason why I like RRSPs as a starting point is that contributing more means you can have a bigger tax return later. Why? Not so that you can go shopping with your return. My philosophy has always been to invest the tax return on top of what you have to contribute. Compound, compound, compound!

In my opinion, compounding savings + investing is the most crucial strategy you can employ as an investor who is starting out. I stress the importance of budgeting so that you’re able to contribute as much of your cash early on in your time horizon. A strong head start leads to an even stronger finish. 

Only when you make withdrawals from the plan will you be taxed on the income you used to contribute to the RRSP, plus any of the gains from trade profits and investment income. For this reason, I have a long-term outlook for my RRSP. I invest more aggressively with a shorter-term outlook for my TFSA because I want to have an account that I can withdraw from to ‘pay myself’ without getting taxed.

There are a lot of other advantageous features of the RRSP, such as the Home Buyers’ Plan, the Lifelong Learning Plan, and the Spousal RRSP. I get into these a bit in my book. There are a lot more ways you can juke and jive with your RRSP’s many features to really maximize the tax deductions and tax deferrals. But first, let’s invest in it!


Trade #1 for the Transparent RRSP

Today I bought 50 shares of an ETF called ZPR, the BMO Laddered Preferred Share Index ETF. I already own this in my TFSA and it’s one of those stocks I will buy over and over again because it’s very affordable and pays a monthly dividend. Affordable income-generating shares = the more shares I can buy, the more income I get! I have a feeling ZPR and I are going to grow old together. There are a lot of other comparable ETFs out there, but this one so far meets my own personal preferences of trading volume and price.

I don’t expect it to move like crazy in share price, but a considerable amount of its holdings are in Enbridge and financials which means it could have a good run if oil and the banks do.

50 shares at $10.86 = $543. My commission is a penny per share* so I paid 0.50 cents in commission. Today I paid $543.50 altogether, leaving me with $456.50 to invest. I didn’t want to use up all of my 1K in case something else comes up that I cannot pass up, like a great cheap stock or maybe a better ETF. I get paid this week, so for the sake of compounding, I’ll add more to this account.


*Not all my trades are a penny per share. Some of them are less, depending on the share price. Additionally, once every quarter, I have to do a trade at the full price of $6.50+ so that I don’t get charged an inactivity fee of $24.95 plus tax. My commission structure with Virtual Brokers is an old one from years ago and until now, I’ve been quite happy with these guys. I think the commissions and structure are quite different now, but are still inexpensive. Virtual isn’t paying me to write this either. Do your research on discount brokerage accounts and select the one that best suits the likely frequency of your trades.

20170104_162330

A VB freebie from the Moneyshow!