Newbie Investing Thread

[tirebob]

Hi Guys,

Anyone who even remotely knows me or pays attention, I get obsessed with any new thing I decide to take on, and now you bastards now have me losing my shit over following the stock market! I can't believe it took me 50 years to even care about it but whatever... Here I am.

So I am trying to learn all this shit and am drilling deep into my brain trying to understand what makes a relatively good thought out gamble versus just a blind gamble. I am talking about pure, high risk penny stock shit. Not smart, long term slow and sure stuff. The first few days I have pretended I am Mr. Day-Trader Extraordinaire (I am talking playing with peanuts here... Have no fear!) just having fun trying to see if I can buy low and sell it a bit up and surprisingly I am getting lucky and doing okay. Behind on some but ahead on others turning a profit, but until today it has just been watching a pattern through the day and trying to guess well.

I guess what I am asking is, what are some of the most common indicators and things to be paying attention to when trying to decide if something has a chance or just to stay the hell away from?

For example, this morning on Yahoo a news release about a silver stock came across and it seems like it might be interesting. It is a cheap one at like 0.29 called Kootenay Silver Inc (KTH). They seem to have been around since 2000 and have fluctuated between 0.19 to 0.51 over the last year. This news release from this morning it was announced they have drilled into some high grade silver reserves on one of their sites. Knowing this kind of stuff, does it reason that chances of making some gain is realistic or do these releases really do jack shit for stocks like this? I am thinking it is so cheap a guy could grab a small whack and see what happens with almost no risk. Am I crazy? Does this make sense at all?

https://www.kootenaysilver.com/news/...project-mexico

[ExtraSlow]

There are three universal truths that any investor should know.
1) Press releases are written for the benefit of the company, not the investor. They rarely outright lie, but they are always biased.
2) insiders will have made their moves based on new information long before you read the press release.
3) most stocks are priced correctly for the risk/return potential. Buying any stock is an inherently risky contrarian bet AGAINST the professionals.

Not saying people shouldn't invest. Just you know, understand your structural disadvantage, don't gamble what you cant afford to lose, and keep fit and have fun.

[BavarianBeast]

What’s their track record for costs to extract?

What are their financial statements looking like?

Who’s tthe management team comprised of?

What’s the average volume?

Some things I look at when buying so called penny stocks.

[tirebob]

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There are three universal truths that any investor should know.
1) Press releases are written for the benefit of the company, not the investor. They rarely outright lie, but they are always biased.
2) insiders will have made their moves based on new information long before you read the press release.
3) most stocks are priced correctly for the risk/return potential. Buying any stock is an inherently risky contrarian bet AGAINST the professionals.

Not saying people shouldn't invest. Just you know, understand your structural disadvantage, don't gamble what you cant afford to lose, and keep fit and have fun.

Yeah I would think this should be relatively common sense but seeing it in print is good. Definitely not playing with anything but fun money on this stuff!

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What’s their track record for costs to extract?

What are their financial statements looking like?

Who’s tthe management team comprised of?

What’s the average volume?

Some things I look at when buying so called penny stocks.

Awesome! Thanks for that bit of guidance... I am looking for these types of points for sure!

[ExtraSlow]

Junior Mining stocks are hellishly volatile, and hard to do due diligence on, and more than half of them go to zero. Canada is actually famous for mining stocks, the old Vancouver Stock Exchange particularly. Now TSX-V I guess.

Anyway, I think the mushroom stocks are much less risky than mining stocks, and those are still basically a casino.

[tirebob]

So so far since Monday when I started a $1000.00 trading TFSA account and fucking around day trading tiny little bits here and there I am up 3.96% overall... Haha! Whoohoo! Double meat sub!

The original one I started in just a normal account is down 4.70% but those are the stocks I originally bought in Numi and Cybin before it came down a bit, and I am planning on sitting on those long term so I am not sweating it at all.

Overall I am enjoying myself!

[tcon]

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So so far since Monday when I started a $1000.00 trading TFSA account and fucking around day trading tiny little bits here and there I am up 3.96% overall... Haha! Whoohoo! Double meat sub!

The original one I started in just a normal account is down 4.70% but those are the stocks I originally bought in Numi and Cybin before it came down a bit, and I am planning on sitting on those long term so I am not sweating it at all.

Overall I am enjoying myself!

I don't think day trading in a TFSA is recommended, I suggest starting a separate investment account for that

[ExtraSlow]

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I don't think day trading in a TFSA is recommended, I suggest starting a separate investment account for that

False.

[cdnsir]

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I don't think day trading in a TFSA is recommended, I suggest starting a separate investment account for that

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False.

If you do high volume trades that actual day traders do, maybe it'll get flagged by the CRA?

As a casual trader, my tip is never fully invest. Always have cash on hand for new opportunities or to average down for salvaging your bad picks.

[tirebob]

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If you do high volume trades that actual day traders do, maybe it'll get flagged by the CRA?

As a casual trader, my tip is never fully invest. Always have cash on hand for new opportunities or to average down for salvaging your bad picks.

100% not an actual day trader.

And yes, this is just some play money. I figured I could buy a few more bottle of good scotch to drink or see if I could learn a bit about something new. I am by no means fully invested with the cash.

[Manhattan]

Just like you wouldn't trust Joe Rogan's vaccination advice don't take investment advice from beyond which is full of degenerates when it comes to "investing" - see crypto/psychadelic/short term threads. Either take the time to learn about financial investment AND management (different things) which takes quite a bit of time and effort or find a professional to manage for you at the expense of higher fees. If you want to do it yourself check out the 'couch potato portfolio' or common sense investing (all about passive indexing which beats the market majority of the time and saves you time).

By the way when folks who sat on the sidelines for 50 years start paying attention to stonks...market top.

[tirebob]

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Just like you wouldn't trust Joe Rogan's vaccination advice don't take investment advice from beyond which is full of degenerates when it comes to "investing" - see crypto/psychadelic/short term threads. Either take the time to learn about financial investment AND management (different things) which takes quite a bit of time and effort or find a professional to manage for you at the expense of higher fees. If you want to do it yourself check out the 'couch potato portfolio' or common sense investing (all about passive indexing which beats the market majority of the time and saves you time).

By the way when folks who sat on the sidelines for 50 years start paying attention to stonks...market top.

Well I would have to agree with you 100% as smart investing advice, you might have missed the part where I tried to indicate I am pretty much trying to entertain myself with a tiny bit of money essentially playing low limit poker, which if I actually was doing I would probably be further ahead by now... haha! If I learn a little on the side then awesome!

[ExtraSlow]

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I don't think day trading in a TFSA is recommended, I suggest starting a separate investment account for that

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If you do high volume trades that actual day traders do, maybe it'll get flagged by the CRA?

Yeah OK, if you are doing say-trading as a major source of income, then sure, you need to have some strategy on how your structure this as it becomes a "job" and you will have write-offs against that income etc.

For what bobby is talking about, and what most of us are talking about, a couple of trades a week with a few thousand bucks, and you have TFSA room, keep it in the TFSA unless you need the room for something else.

[tirebob]

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Yeah OK, if you are doing say-trading as a major source of income, then sure, you need to have some strategy on how your structure this as it becomes a "job" and you will have write-offs against that income etc.

For what bobby is talking about, and what most of us are talking about, a couple of trades a week with a few thousand bucks, and you have TFSA room, keep it in the TFSA unless you need the room for something else.

Wow... What kind of baller money are you playing with? I feel like a hobo now.

[suntan]

I vaguely recall some rule like 3 trades a day triggers a notification for CRA to take a closer look.

My recommendation is that any trading be done while you are drunk.

[ExtraSlow]

There's varying degrees of hobo-ness.

We are both on the spectrum compared to a few guys here.....

[tirebob]

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I vaguely recall some rule like 3 trades a day triggers a notification for CRA to take a closer look.

My recommendation is that any trading be done while you are drunk.

Okay I am making more than that, but we are talking profits and losses in the $0.10 to $10.00 range, so maybe I will bother RevCanada to put me on their ignore list out of sheer annoyance.

And drunk trading... A new challenge! I accept.

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There's varying degrees of hobo-ness.

We are both on the spectrum compared to a few guys here.....

I definitely have the look down right now with my covid lifestyle... I think I must be upper end of the spectrum.

[ExtraSlow]

All my favourite investors are on this spectrum

[tirebob]

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All my favourite investors are on this spectrum

If that is the legit spectrum, I'm fucked

[Disoblige]

My advice Bob. Mark said it pretty good.
In this realm, there is a lot of noise. Like, so much.

Many times people panic sell due to this or FOMO buy. The key is to be well versed enough so you can formulate your own plans, stick to them, and not let unnecessary noise get to you. This means understanding your entry and exit points and not changing the plan unless something changes. Plenty of my colleagues have blown their accounts and I refuse to ever give them any stock tips or anything because I know their plans are different than mine.

I will admit I was a bit lucky when I first started trading on some leveraged stocks, but it helped me learn a lot over the years. I have made a lot, lost a lot, but overall I made more than I lost. That isn't the point though as the learnings was the most important.

Anyways, here is a piece I found to be useful from Cuban.