My first trade was one that I will never forget. I was uneducated, inexperienced, and worst of all I made the move out of spite. There were enough naysayers that I decided, what if they were wrong? Sure, the company had lost 17,800% in just over a year, but they were sound company in a developing market and the last remaining Canadian technology stock. I firmly believed they would avoid bankruptcy, or the Canadian Federal Government would bail them out. I was too young to legally trade and had to do so through my parents account. Although it was my money I had earned through small jobs and labor, I really had no idea the risk involved. I would never suggest to anyone to blindly trade. Read some finance books, practice with a simulator for an extended period of time, and most importantly try to get a feel for the ebb and flow of the market. Therefore, disregard the end of this paragraph. My first trade is still my most profitable to date. I entered Nortel Networks at the absolute bottom. I piled all the money I owned to buy a large position with an average value of $0.71. As I said, part of my decision was spite for one of my good friends, and oh how I can still make him cringe whenever we sit down to have a couple of drinks. Months later, I sold my Nortel shares at $11.80. The only lesson I can draw from my opening move as a trader is that you can study, prepare, and react to technical indicators, but at the end of the day you have to have the balls to put your money on the line and that can be extremely stressful.
So why would I start writing a blog? Years have passed since my first trade, and now I’m employed, a little more educated – albeit not in finance – but there is nothing reading and motivation can’t substitute for. My background provides me with a unique skill set when it comes to investing. I use technical analysis like everyone else, but mostly for entry and exit points. I don’t perform trades on companies I don’t like, unless I am testing a new strategy or indicator. I prefer investing in companies that have some unique underlying value, whether it is a mechanical or material patent, new technology, strong geological results, seasonality, or within a performing or lagging sector. Every trader has a set of rules. My list is constantly growing and evolving from wins, losses, and what I call ostrich stocks (the ones you just can’t bear to look at anymore). I see my blog more as a journal of what I read, study, watch, and overall feeling on markets and mostly commodity trends.
Who do I want to follow this blog? I’d like to create a constructive environment where no difference or strength of opinion can be discredited. Most importantly, I want to spark interest for the Canadian Markets. There is no time like the present to become familiar with what Canada has to offer. Inflation or global development has created an aggressive mining and resource bull market. Sure there will be arguments made that you’re wasting your time north of the 49th, but I disagree. If anything Canada is practicing stability almost to the expense of Canadian growth through increased value of the dollar, driving down exports. We as a country hold a power over the United States and importing countries around the world. We have comparable and varying strengths of gold, silver, oil, uranium, copper, coal, and rare earth metals combined with a large agricultural industry, and noble finance sector that is racing to make acquisitions. A small population can also have a few notable service/consumer goods companies, ones that are marketable enough for other countries.
I am long $DAG $MOO (food inflation) $UNR $CBS (small cap Canadian resources).