RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Monthly Dividend for August of $0.01625 per ShareYou have outed yourself as an inexperienced amateur by calling this a no-brainer and implying that you have the ability to be in and out at the exact right times. I could get on board in saying that this is a good O&G opportunity, though the easy money has already been made. I can't agree with anyone who thinks this is a guaranteed money making opportunity.
Those of us who have invested through several O&G cycles know that it is never a no-brainer. Nothing is guaranteed. All the O&G busts I have invested through - no one saw them coming. In fact they usually happen when everyone is jumping in as the prices rush up. The only way to avoid them is to get out at every scary moment but then you would never be in.
The depth and length of the next downdraft will only be known in hindsight. We might be on our way to a severe drop right now which could see many of these names trade where they did last summer/fall.
It's never a no-brainer.
I've seen a lot of investors come and go here over the years. I suspect I won't ever see you again once these O&G names drop 50%. Probably much sooner than three years from now.
2021Gamble wrote: first off....you missed the main point. I Invest. I don't trade.
I also don't believe in luck. It is research, DD and experience that I rely upon.
So yes, I use a non registered, a TFSA and also an RRSP. I pick and choose which investment goes in which account based on the long term and short term tax consequences.
On your comment about the last 10 years of O&G - of course they lost money. They needed to leave O&G in 2012 after the 4 year bull run following the stimulus spend of 2008. Tuff on them - that is the experience at play.
So...in three more years, I won't be in O&G...but right now (well, actually since last year in April)...with trillions of stimulus spend...ya O&G is pretty much a no-brainer.
And it isn't nearly over yet.....a couple more real real good years to go.
As for the "most essential tool" being tax loss harvesting ... that's a joke right? You think the most essential tool is loosing money ? And being able to use that loss tax effectively is the key to success....
you've just proven that you are the one gambling....
I'm here to just make money....That's why I bought my WCP at 1.31.....cheers to you
riski wrote: It's fair to acknowledge that building TFSA/RRSP room is valuable. But it cuts both ways.
Every trader goes into it thinking they are going to mak money. However, greater than 90% of traders lose money and stop trading within 3 years. It's the tax loss harvesting that helps many of them recover a fair amount of losses or get back to even...once they crystallize actual gains down the road that they can take tax free.
Almost all junior O&G traders have lost money in the past 10 years.
Are you feeling lucky?
However the most important thing you are missing is the opportunity to tax loss harvest. The real skill in trading comes in managing tax consequences of trades and the best way to manage tax is through tax loss harvesting. This can easily be done without any change in exposure and risk, but only in a non-registered account. A good trader with proper knowledge of tax will have a chance to make money net of tax and trading commissions. A trader who ignores tax is swimming upstream and hoping to get lucky to offset their tax ignorance.
You can't use the most essential tool available to a trader if you are buying junior O&G in TFSA/RRSP.
Good luck. You are going to need it.
2021Gamble wrote: I disagree with you Riski. Depending on the time horizon, usine a portion of the TFSA for spec plays makes sense - as long as you are willing to take profits along the way. Because room in a TFSA, once gained, also stays.
But hey, to each their own I guess. I plan on increasing the size of my TFSA, not shrinking it, and if I wanted to buy ETF's I would have. But given I actively manage my portfolios, I expect to outperfrom the market too...so ETF's don't make much sense
riski wrote: Yes, willing to lose all of it along with all your TFSA room - ouch. That's a much greater loss than meets the eye since TFSA room is limited and once wasted, is gone forever.
That TFSA room is golden and very valuable for harshly taxed investments like bonds and fixed income, something we will all have some day though I don't have any yet. Losing that room on junior O&G speculation is an epic financial blunder. The financial loss of losing that room is much greater than just the loss itself.
If you are going to put equity in a TFSA, choose a broad market ETF. Not a Canadian one since the EDTC results in lightly taxed dividends and those are better in a nonregistered account. Rather, this is a good place for a US or foreign broad market ETF. If you are willing to hold for 5 plus years, it will do well in there.
TFSA room is precious. Don't waste it speculating.
barneyj44 wrote:
I wouldn't think Whitecap fits in the speculative category, volatile yes. If by chance you happen to pick a 5 or 10 bagger and have it as a small slice of your Tsfa pie it can be very lucrative but you have to be willing to lose all or part of it.