Trading Account Update - August 24 2020

 As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               

                                # of trades :                        51
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3820.33
                               Average Drawdown:          $148.46
                               Average Loss:                    $287.20
                               Average Accuracy:            84.00%
                               Average Risk:                    $164.77
                               Average Reward:              $108.39
                               Average Risk/Reward :      1: 0.658

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.857.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Below is a chart of my 2020 percentile gains

Below is a chart showing my overall percentile gains from January 1, 2016, to August 24, 2020. 

Conclusion:

I have not gotten the results that I have wanted over the last couple of years. This is evident in the long roughly flat line in the chart above.  

I need to gain better entry points and to make sure to use a stop loss.  In the trading platform for my brokerage, you can put in a stop limit order when purchasing a stock via a bracket order.  

Note:  The trades are listed under the Trading Tab above with all the trades listed as of August 24, 2020

Note:  As of August  24, 2020, there is no active trades. 

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

International Diversification Via an Exchange Traded Fund

I have held Tangerine funds within my RRSP for a few years and then sold out.  I kept the cash with Tangerine as a high interest savings account for about 3 years.  The interest rate kept dropping and I got more and more frustrated.  I decided to make a move.

I transferred my RRSP to my brokerage to make better investments and hopefully better returns.

I decided to start off with international exposure.  I decided to go with XAW ETF based in Canada.  The ETF is actually called iShares Core MSCI All Country World ex Canada Index ETF.  To learn more about this ETF, click here.

I now own 35 units of this ETF.  I did not use my own money, except the capital to purchase other positions to help pay for it.

Steps:

- April 24  Purchased 400 shares of SJR.B 

- April 24 Sold 4 SJR.B covered calls with expiration May 15 2020 at $23 strike  for net premium of $206.05

- May 14 Bought 8 units of XAW ETF at $24.93 for a cost of $199.47 including ECN fees

- Covered call expires worthless

- May 19  Sold 4 covered calls on June 19 2020 $23 SJR.B for net premium of $226.05

- June 10 Bought 9 units of XAW at $27.36 for a cost of $246.27 including ECN fees

-June 19 Option assigned

- June 23 Purchased 400 shares of SJR.B

- June 26 Bought 10 units of XAW at $26.35 for a cost of $263.54 including ECN fees.

- July 2 Sold 4 covered calls with expiration August 21 2020 at $23 strike for net premium of $246.05

- August 12 Option assigned 

- August 14  Bought 1 unit of XAW at $28.27 with no ECN fees.

- August 17 Bought 200 shares of Fortis (FTS.TO)

- August 19 Sold 2 FTS.TO covered calls with September 18 2020 expiration at $54 for net premium of $108.05

- August 20  Bought 7 units of XAW at $28.11 for a cost of $196.79.

I received dividends as follows 

- May 28 2020    SJR.B  $39.50

- June 29 2020  SJR.B $39.50

- June 30 2020 XAW $3.93

- July 30 2020  SJR.B $39.50

I will be receiving the FTS.TO dividend of $95.50 on September 1.

Summary

Options premiums received = $206.05+226.05+ $246.05+$108.05

                                        = $786.20

Dividends/Distributions received = $39.50+$39.50+$39.50+$3.93

                                                = $122.43

Future FTS.TO dividend  = $95.50

The total amount is $1004.13

Purchased costs for XAW = $199.47+ $246.27+ $263.54+28.27+196.79

                                     = $934.34

You can see that my purchase of 35 units of XAW have been paid by a future dividend from Fortis, option premiums collected and payouts via both dividends and distributions.

Note: My RRSP is not part of the blog and therefore the dividends, distributions, RRSP portfolio value and option premiums are not part of my portfolio updates or dividend income updates.  The market value of my RRSP will appear in my net worth updates. 

Disclosure :  Long XAW.TO

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Weekend Reading - Canadian Edition

 Another crazy week in the markets and life in general.  COVID19 is still the major topic of the day.  Things that are of outmost importance such as climate change have taken a back seat.  In fact, a major piece of ice shelf in the far north broke off due to risen temperatures.  

More and more cities and tourist destinations have brought in mandatory masks and/or face coverings bylaws to help control the spread in their areas.  

In the United States, truckers have come under attack by "peaceful" protesters attacking their trucks and trailers.  Interstates are being blocked by protestors which affect the flow of goods within the United States and beyond.

Now, on to the things we do this weekend that can give us hope and inspiration.

First of all, I published my Portfolio Update and Dividend Income Update for July 2020.  

Some other bloggers in Canada wrote some fantastic post since the beginning of August.

 Jordan on his blog, Money Maaster,  wrote about his July 2020 dividend report and other news in his portfolio.  He is up to nearly $12000 in excepted forward annual dividend income.  

Graham from Reverse The Crush published his Dividend Income Report for July 2020.  Graham had outstanding year over year growth in dividend income!

Matthew from All About The Dividends published his July 2020 Dividend Income.  Check out his post for his record month.  All the cash he put to work is starting to pay off in remarkable ways. 

Mark from My Own Advisor published a post about his July 2020 Dividend Income Update.  

Bob from Tawcan wrote about Teaching Kids About Financial Independence.   

Rob over at Passive Canadian Income published his July 2020 Passive Income Report.  Rob collected income from 4 different sources.    

Liquid over at Freedom Thirty Five Blog wrote about The State of the Economy - 2020 and Beyond.  

Jessica over on her blog jessicamoorhouse.com discusses High-Interest Savings Accounts in Canada. Things have certainly changed due to COVID19 pandemic in 2020! 

Conclusion

I hope you enjoy the articles and are motivated to keep moving forward. 

Dividend Income Update - July 2020

      

The month of July 2020 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment. The interest on debt is 7.16% 5.66% plus the insurance on the debt. The decrease in the interest rate is a result of emergency rate cuts by the Bank of Canada over the COVID19 pandemic. Starting in August, I will change my pay myself first percentage. I will be paying 15% towards line of credit and 12% will go into savings. As my normal savings account is in the $2000 range, I have a couple of big expenses coming up. So, I will be putting money into savings until the $2000 amount is reached again.


I made my last deposit to the TFSA at the end of July.

Note: All the dividends and totals below are in Canadian Dollars.

Non-registered Accounts

Bank of Nova Scotia (BNS)  -  $18.00 (Margin Account)
Bank of Nova Scotia (BNS)  -  $42.24 (Transfer Agent)
Bell Canada Enterprises (BCE)   - $83.25
Canadian Imperial Bank of Commerce "C.I.B.C" (CM) - $160.60
Enerplus (ERF)     - $7.35
Roger's Communications Class B (RCB.B)     - $100.00
Shaw Communications (SJR.B)     - $19.75

Subtotal : $431.19


TFSA

A&W Royalties Income Fund   - $3.80
Cominar REIT (CUF.UN)    - $13.56
Killam Properties REIT (KMP.UN)    - $17.11
TD Bank (TD)    -$48.98
TFI International (TFII)    - $13.00
Telus Corporation (T)    - $13.98

Subtotal: $110.43

Total = $541.62


I received a total of $541.62 in dividend income for the month of July 2020. This represents a 11.13% decrease from 3 months ago and 5.92% increase year over year.

The decrease of 11.13% from 3 months ago is due mostly to Restaurant Brands International paying their dividend on June 30 instead of normally the first week of July. This was offset by A&W Royalties Income Fund distribution payment, although smaller than before, paid out at the end of July. A&W Royalties Income Fund stopped paying a distribution at the end of the March due to COVID19 lock downs.

I received dividend / distribution income from 12 different companies.

I received $0.00 in option premiums within my investment accounts in July 2020.

Below is a visual of my dividend totals for the last 5 years.

Click to Enlarge

Most of my dividend income comes from my margin account. 

Next, I will show the percentage of total income for each position. I used the combined total of dividend income for Bank of Nova Scotia in the chart below.

I will update my dividend income tab with the new amount. I will include my option premium income also. It is great to see money from passive income sources deposited into my brokerage account every single month.


Note: Any activity in my RRSP account is not included in these totals.


How was your dividend income for July 2020?


Disclosure : Long all mentioned securities

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Portfolio Update: July 2020

The month of July 2020 now behind us. Some major things have happened in the world, which affect the markets in some way.

Covid19 is still the major news item of the day around the world.  As economies are loosening restrictions allowing people to get their lives back to somewhat normal, we see a drastic rise in new cases.  Stories of large gatherings happening such as parties or people in close proximity on a beach are major topics on the news.  Politicians who are part of the government for their state or province are furious.  The fear of a second wave grows more by the day.

The price of oil is steady at around $40 per barrel, but the price needs to be higher to be beneficial to western Canada as Western Canada is a high cost producer.  

Portfolio Activity

Margin Account Activity

There has been no activity in this account.  I have been building up cash within my TSFA, after adding to my position in Intertape last month.   

TFSA Activity

There has been no buys or sells in this account. I have not taken any money out of this account in several months.  

Brookfield Renewable Partners awarded their shareholders approximately 6 months ago with a unit split that would take affect in mid 2020.  A unit holder of BEP or BEP.UN would be award 1 unit of BEPC for every 4 units of BEP or BEP.UN that they hold on the record date. On July 30, I was expected to receive 8 units of BEPC, but those units have not appeared in my account as of this writing.  

A&W Royalties Income Fund (AW.UN) has re-instated a distribution after suspending it a few months back due to the COVID19 pandemic.  The new distribution is $0.10 per unit, or $1.20 per unit annually.  This is a 37.1% decrease over the previous distribution that was paid a few months back.  It sure beats having no distribution.  The first distribution payment started July 31. 

Shares Purchased Via DRIP

1 unit of CUF.UN @ $8.2635 for a total cost of $8.26 (TFSA)

2 shares of ERF.TO @ $3.5735 for a total cost of $7.15 (Margin Account)


Cominar REIT pays a monthly distribution of $0.06 per unit per month, or $0.72 per unit annually. This DRIP adds $0.72 to my annual dividend income. The yield on cost for the DRIP unit is 8.72%.

Enerplus pays a monthly dividend of $0.01 per share monthly, or $0.12 per share annually. This drip adds $0.24 to my annual dividend income. The yield on cost for this DRIP is 3.36%.

My position in Bank of Nova Scotia that is directly with the transfer agent.  The dividend was paid on the July 29.  This is set up as full drip, but as the time of this writing the new DRIP shares have not appeared in my account.

I have some other positions with the DRIP turned on, but might not have enough of a dividend to purchase a whole share. Boston Pizza Royalties Income Fund (BPF.UN) have suspended their dividend due to restrictions put in the place due to COVID19. 

Please note that if some brokerages DRIP shares when there is no DRIP program by the actual company. This DRIP is when the brokerage buys the shares directly off the public market stock exchanges. 

Dividend Increases

There has been no dividend increases in July 2020. 

Dividend Decreases

There has been no dividend decreases in July 2020. 

Summary: 

As of August 1, 2020 , the total value of the portfolio is $110221.30. This is a 2.93% increase over last month's total.  As discussed above, Brookfield Renewable Partners (BEPC) shares have no appeared in my account.  The units of BEP.UN have fallen by over $15.00 when BEPC started trading on July 29.  

The portfolio is estimated to produce an estimated $5228.78 in dividend income over the next 12 months. This is an increase of $40.34 CAD , or 0.78%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. The US dollar has weakened over the last month which results in the lower exchange rate when converting US dollars to Canadian dollars. 

Please Note: Positions in Restaurant Brands International (QSR.TO) and Intertape Polymer Group (ITP.TO) pay dividends in US dollars. Brookfield Renewables Partners (BEP.UN) pays distributions in US dollars. My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time. 

Did the pandemic change how you will live going forward regarding finances?

Disclosure: Long aforementioned stocks

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice. Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.