Another day later and my gold stock investment is on the positive side. Whew!

Name/symbol                             increase/decrease
BARRICK GOLD - ABX  +2.50%
GOLDCORP NEW - G  +2.16%
YAMANA GOLD - YRI  +2.28%


I forgot to mention, I bought some Trans Canada Pipeline some time ago. It has done fairly well and pays a small dividend.

Name/symbol                             increase/decrease
TRANSCDA CORP - TRP  +15.55%

Now I've just got to watch everything. Its funny, but that is not as easy to do as you think. I'm going to try and do a weekly review every Monday morning. Now that I've bought these stocks, what I am watching out for is a 5% drop in a stock. That is my sell signal.

Since my last post I did gather a little bit of money and bought a few bank stocks; specifically Bank of Montreal and Royal Bank. They have both done quite well. I wish I had bought more.

Name/symbol          increase/decrease
BMO - BMO           +16.12%
RBC - RY               +19.27%


Then Monday [2013/04/22] I saw the big drop in Gold and thought "What a buying opportunity!". I borrowed some money, loaded up my TFSA and waited to buy some gold company stock. I was a little to anxious.

As we approached the market close, Golcorp, Yamana gold, and Barrick had turned from their downward trend but were only up 2 ~ 3% from their lows. I wanted to buy, I didn't want to miss my chance,  I didn't want to miss the market close, so I put in a buy order for all three. The orders filled just before market close. It is good I got what I wanted, but in my panic I didn't follow one of my basic rules; don't buy until you see at least a 5% increase.

But if you know, you know. If you are right, you are right; right?

Here are my gold stocks the next day;

Name/symbol                                  increase/decrease
BARRICK GOLD - ABX  -3.20%
GOLDCORP NEW - G  -3.35%
YAMANA GOLD - YRI                -3.50%

I think these stocks will eventually recover and go up, but it just goes to show, you never really know what a stock will do. You must let it show you. You must see a solid upward trend before buying. You must be calm, cool, and collected.

Now, I have just got to follow my other rule; sell if you see a solid downward trend.

In early January I made another large sale of stock and made another large lump sum payment on my mortgage. It is not quite paid off but will be in a little over a year. It feels good.

I am still watching the markets, but haven't done anything. I am slowly gathering a little cash and am going to max out my TFSA and my wife's.

A great idea!

If you have read any of my previous posts you will know I am not impressed with financial advisors and even less impressed with mutual funds. The problem is that they are not paid commensurately with their results.

As an investor I don't think someone else, someone supposedly helping me, should make more money off of my money than I do. I don't mind paying money, even more money, if I'm making money, but nothing pissess me off more than paying money while I loose money.  A fund operator should never ever ever make more money than the investor.

So, I have a great idea! I want to start a mutual fund or ETF that only collects a fee when it preforms and you make money.

It would work like this;
Say the fund charges a 2% fee. If the fund makes more than 2% the operator gets the full fee.  If the fund makes less than 2% the profit is split. If the fund looses money the fund operator gets nothing.

This way the goals of the fund operator are aligned with the investors. I wouldn't even mind paying a percentage more to get results.

I wonder if any mutual funds have balls enough to do it. Now, just to get an appointment with a ballsy mutual fund. Hmmm.

I've been watching the markets but have decided not to buy anything. Instead I'm going to take my money and pay down my home mortgage. I can do 20% a year so I'm doing 20% now and 20% in January. It won't quite be paid off, but it will be very very close.

While gathering the money I'm doing something which I think is quite clever. First, of course, I sold all my losers. Then I sold my principal investment in any stock that was flat or had increased but turned down. That gave me enough money for this round, but in January I'll need to sell my principal investment in some of my winners.

The markets have survived what would have been, black Monday [Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed], and  the black days of the 1929 crash.

[On October 24 ("Black Thursday"), the market lost 11% of its value at the opening bell. On October 28, "Black Monday", ... the slide continued with a record loss in the Dow for the day of 38.33 points, or 13%.   The next day, "Black Tuesday", October 29, 1929, ... the Dow lost an additional 30 points, or 12% ]

Hurricane Sandy has come and gone, the machinations of Europe have continued with no real resolution, the slowdown in china continues and the markets have marched on. A market perfect storm has not materialized.

The U.S. presidential election is tomorrow. Regardless of the outcome I think it is time to re enter the market. I've just got to remember my second rule, only buy stock when the stock is trending up and has shown at least a recent 5% growth.

Hmmm... Strange things appear when you look closely.  The stocks that were down over 5% from the high since buying [ and some just over 5%] are;

- the BMO mutual fund ...- .. I put in an order to SELL
- Canadian oil sands .......- .. I put in an order to SELL
- Enbridge ......................- .. I put in an order to SELL
-Encana ..........................- .. I put in an order to SELL
-Royal Dutch Shell ..........- .. I put in an order to SELL

Suncor was down 4.88% from the high since buying, but I put in a sell order anyway.

Although these will be sold they are not forgotten. They all now go on my watch list. I need a change in direction and at least a 5% increase from their coming low to buy back in.

Funny,  its mainly the energy stocks that are down from their high since I bought. Perhaps this is an indicator that the world economy is slowing down....or perhaps that the unrest in the middle east has subsided, or that the coming u.s. election will solve everything.. More likely it indicates something we really can't quite fathom [but that the pundits will ascribe to whatever they said].