On May 16, 7:12 pm, bowgus <bow...[at]rogers.com> wrote:
- quote -

So to sum up, I was able to watch TSX:SGF today (looks to have hit
bottom), and to read an encouraging report (high likelihood of an
operating mine late 2007/early 2008), and so made my 2nd buy of 1000
units at $5.24. If all goes well, I will make at least 1 more buy over
the next few months ... depending.

About that energy value I've been pondering. Finally picked my buy
which was ARC Energy Trust (TSX:AET.UN). Why a fund ... that 10%
"dividend". Why ARC ... well, all the oil heavy funds have already
done a lot of growing. ARC is about 63 oil/37 gas and with all the
attention on oil, hasn't grown much. So ... ARC is from what I've read
an excellent all round company, gas has gotta go up eventually, and if
so, it was (tbd of course) an excellent buy at $23.10. This is my RSP
(tax sheltered) account ... I plan to hold ARC for a long time. How
many shares did I buy ... 3 thirds :-)

So that's it ... done for now ... well, keeping tabs on one more that
I made a few $$s on earlier in the month, then sold. Just waiting for
the buying frenzy to die down.

On May 16, 9:44 am, kastnna <kast...[at]auburnalum.org> wrote:
- quote -

As mentioned in a previous thread, this is a (very interesting) hobby
for me and not part of my financial plan.

Good timing though ... one of my accounts required some activity to
avoid being closed. I peruse the daily reports out of RBC with whom
this account is ... I am interested in value, so I am following a
number of utility/energy equities ... but that's another story, for
another account.

For the account that requires activity, I settled on Shore Gold (TSX:
SGF) closing at $5.40 last night. It's a real beat up stock but the
RBC report includes "they're looking for financing in 2007 ,,, the
market is not recognizing any value for the large-tonnage (snip)
deposit ... " and put a target on it of $9.00. Now, I don't like doing
this, but with all day workshops going on this week and being unable
to get to the internet during the day, this morning around 6:00 am, I
put in a buy of 1000 shares at $5.40. Just got home and the order is
filled at $5.40, meanwhile the closing price is $5.26. So I'm already
"down" $140. I put a stop limit of $4.80 on it through the next month.
I can sleep at night because I am prepared to lose $600 (hope I did
the math right). On the other hand, if things go well for Shore, I'm
prepared to go along ... as long as there's progress.

You are welcome to follow along and judge the success or lack thereof
of my "method" for yourself.

Bowgus,

Just out of curiosity, how often do you find and purchase the value
investments? Also have you found your method to be more successful
than other methods given similar risk levels (isn't this what its
really all about)?

I have met investors with similar strategies that purchased so
infrequently that even though they made 1-3% in a week, their funds
spent so much time in low-risk investments (cash, money mkt, & t-
bills) that they didn't come out any better than their contemporaries
did in comparable investments. After-taxes (ordinary, not CG) many
discovered that they actually did worse. Often times they were also
simply wrong about the trending stock price and sold down to free up
the cash to get into another "value investment".

Not attacking your system, I'm just intrigued. Like I said, many of
the investors I have met that did this probably didn't put in the time
or have the understanding to find these values fast and frequently
enough. Just wondering what your experience has been so far.

- quote -

My 2 cents ... daytrading is simply trading, and trading is not
investing that's for sure, but forget that trading on margin. I am
much more comfortable trading than I am investing. And I have no
problem holding cash while I look for an interesting purchase. Fwiw, I
look for 1000 shares of something that'll go up a dollar or two over a
day, or week, and then sell, and always with a stop loss in place. I
just don't see this market as something to invest in ... when it does
correct, I'll have cash and the choice to get back in either as an
investor or trader.

ymyaw55[at]yahoo.com wrote:

- quote -

Daytrading isn't investing, it's gambling, and over time most day
traders go bust. Even low commissions add up when you trade multiple
times per day.

You need to ask your broker precisely what the rules are regarding
settlement in an account which you intend to day trade. I've understood
those rules to be slightly different than those of standard settlement.

You may want to review the rest of your financial affairs before
gambling away this $2000.

JOE

<ymyaw55[at]yahoo.com> wrote in message
news:1179218298.731697.205810[at]o5g2000hsb.googlegroups.com...
- quote -

Sorry, no can help on the advice request. Just thought
I'd mention this tidbit: In my mind "financial planning"
and "day trading" are at completely opposite ends of the
spectrum.

If I had a choice between day trading and throwing it
down on the craps table in Vegas -- I'd be heading to
Vegas, 'cause at least that would be entertaining while
I was losing a pile of money.

SEEKING ADVICE (PLEASE HELP)

I have a question regarding occasional non-pattern daytrading in a
margin account with a $2,000 starting balance. Any advice from a
knowledgeable, well-informed person will be greatly appreciated. I
just recently opened a margin account and deposited $2,000 with a 2 to
1 margin borrowing capability. My main question is about settlement
dates on trades. I know the settlement date for purchase and sale of
most securities made in cash accounts is three business days following
the transaction. In a cash account one can incur a Regulation T
violation when one violates a good faith agreement and doesn't have
sufficient funds available to settle. Please read the example below
and then view my follow up question.

Good Faith Violation Example 1:
Available to Purchase Securities = $0.00
· On Monday morning, a customer sells XYZ stock netting $10,000 in
cash account proceeds
· On Monday afternoon, the customer buys ABC stock for $10,000
· If the ABC stock is sold prior to Thursday (settlement date of the
XYZ sale), a good faith violation would be charged as the ABC stock is
not considered fully paid for prior to sale.
Good Faith Violation Example 2:
Available to Purchase Securities = $10,000
· On Monday morning, a purchase is made for $10,000 of XYZ stock
· On Monday mid-day, the customer sells the $10,000 of the XYZ stock
· Near market close, the customer purchases $10,000 of ABC stock
· At this point no good faith violation has occurred because the
customer had sufficient funds for the purchase of XYZ
· If ABC is sold prior to being paid for (settlement) then a good
faith violation will have occurred
Good Faith Violation Example 3:
Available to Purchase Securities = $10,000 - Cash Credit from
Unsettled Activity = $5,000 (Proceeds from a sale of stock the prior
Friday - Trade settles on Wednesday)
· On Monday morning, customer purchases $15,000 of ABC stock
· A good faith violation occurs if this customer sells the ABC stock
on Monday or Tuesday.
· The purchase is not considered fully paid for because the $5,000
proceeds are not considered sufficient funds until they are settled on
Wednesday.

My question is would the example above pertain to a margin account as
well or only a cash account in regards to how long you have to wait
before a purchase and sale settles so you can move on and make another
purchase. Are Good Faith Violations possible in a margin account as
well? Ok, so if I start out with $2,000 in my margin account, borrow
another $2,000 and buy $4000 worth of XYZ stock on Monday morning then
sell XYZ stock later Monday afternoon, can I then use the $4,000 and
any net gains to buy ABC stock the next day on Tuesday morning then
sell ABC stock Tuesday afternoon, then use the $4,000 and any net
gains to buy EFG stock Wednesday morning then sell EFG stock Wednesday
afternoon.

Since one has to have $25,000 or more to pattern daytrade, and pattern
daytrading is defined as making 4 or more daytrades within a five
business day period, my idea is to day trade three times in every five
business day period. In order to do that I need to know If after each
purchase and subsequent sale a particular stock I can then go on to
buy and sell a stock to more times without having to wait three days
between each trade to wait for the purchase and sale to settle. Does
one have to wait three business days for a transaction to settle in a
margin account? I would greatly appreciate any advice or knowledge
anyone has on the subject. Thank you very much.