Anyone here invest/trade stocks?

[MoneyGuy]

Originally Posted by Flashpoint

And that, ladies and gentlemen, is the difference between a "trader" (who may as well just go to Vegas and bet on black) and an investor (who looks at the long term).

Since the thread is looking for investment advice... try finding a stock with a depressed price (that may yet lose money in the coming months) that will likely return to its average price in the years to come.

Patience is a virtue.

Quoted for truth! Darn, I type in and it doesn't show in my post. Why?

[SeeGeeWhy]

Private equity FTW

[The Fonz]

Question: Let's say I take $500, and spend it all on a stock worth $5.

500/5 = 100

Then I sell at $7.50...

100 x 7.50 = $750

What sort of fees/taxes will I be paying on this?

[SeeGeeWhy]

Originally Posted by The Fonz

Question: Let's say I take $500, and spend it all on a stock worth $5.

500/5 = 100

Then I sell at $7.50...

100 x 7.50 = $750

What sort of fees/taxes will I be paying on this?

First, you will pay transaction fees when you buy and sell, this varies from broker to broker.

Second, you will pay capital gains tax on 50% of what you made ->

750 - 500 = 250

250 * 50% = 125

Tax = 125 * Individual Tax Rate

Capital gains are taxed at your individual tax rate. I am not sure where you are, so I can't say.

If you hold this stock inside of a registered retirement savings plan account, or a tax free savings account (to come into effect Jan 1 2009), then the capital gains tax will not be paid. However, you do pay tax when you start to pull funds out of that RRSP, and you are forced to withdraw the funds once you hit a certain age.

[The Fonz]

Thanks for replying. Also, I'm in Saskatoon and using CIBC Investor's Edge, if that helps.

[Clarkey]

Originally Posted by The Fonz

Question: Let's say I take $500, and spend it all on a stock worth $5.

500/5 = 100

Then I sell at $7.50...

100 x 7.50 = $750

What sort of fees/taxes will I be paying on this?

Hey Fonz, don't forget that it typically costs $30 bucks to buy and $30 to sell, so you've got to factor that into your gains/losses.

Questrade.com trades range from $5-10 bucks.

[SeeGeeWhy]

Originally Posted by The Fonz

Thanks for replying. Also, I'm in Saskatoon and using CIBC Investor's Edge, if that helps.

Well, that impacts your provincial tax rate, but the most important factor is what your income is for the year (capital gains included).

You can find the rate schedule on the revenue canada website:
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

Also, there is a one time capital gains exemption that you can exercise, but its best to save that one for something big... the limit is $500k I think.

[Slava]

Originally Posted by SeeGeeWhy

Well, that impacts your provincial tax rate, but the most important factor is what your income is for the year (capital gains included).

You can find the rate schedule on the revenue canada website:
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

Also, there is a one time capital gains exemption that you can exercise, but its best to save that one for something big... the limit is $500k I think.

The limit is now $750k IIRC. I'm not too sure about Questtrade, but most of those companies are offering trades at $7 based on your trading a certain amount per month (I think around 25-35 trades). Otherwise you are looking at about $30/trade....can really eat into your returns!

[Table 5]

30 dollars for trades? man, ive used etrade and ameritrade, and neither of them has every charged me more than 15 bucks a trade.

Maybe it's different in Canada, but there's no reason anyone should be using an online brokerage that charges 30 bucks.

[Slava]

Originally Posted by Table 5

30 dollars for trades? man, ive used etrade and ameritrade, and neither of them has every charged me more than 15 bucks a trade.

Maybe it's different in Canada, but there's no reason anyone should be using an online brokerage that charges 30 bucks.

I have a TD Waterhouse account and pay that. I am quite sure that it was the same through etrade when I looked at that as well.

Once my licensing changes than I will do away with the evil bank anyway!

[gladaki]

Originally Posted by The Fonz

That's why I was thinking of buying stock in oil companies, I don't know a lot, but don't you think their stock will bounce back up eventually? Seems like a solid investment to me.

I'm also looking into some companies that do solar energy...

SunPower Corp - closed at 32.99, 52Wk high 164.49, 52Wk low 29.33
Suntech Power Holdings Co - closed at 16.35, 52Wk high 90.00, 52Wk low 11.50
First Solar Inc - closed at 150.09, 52Wk high 317.00, 52Wk low 95.32

Does anyone else think solar would be wise to invest in? Seems like a technology that we're surely to use more of in the future.

This forum is full of amazing people. So I was trying to search what people say on investment. This post from 2008 made me curious about these stocks. Looking the above stocks today

SunPower Corp - closed at 32.99, 52Wk high 164.49, 52Wk low 29.33
Selling at 32.59
Suntech Power Holdings Co - closed at 16.35, 52Wk high 90.00, 52Wk low 11.50
0.58USD,
First Solar Inc - closed at 150.09, 52Wk high 317.00, 52Wk low 95.32

58.5 USD

Return after 6 year will be

[DuffMan]

Originally Posted by gladaki

This forum is full of amazing people. So I was trying to search what people say on investment. This post from 2008 made me curious about these stocks. Looking the above stocks today

:

If you liked this, you might also like the ,,, stocks: best buys thread

[Calgary14]

Originally Posted by Table 5

So, every year or so I get into an investing type of mood, and this time its no different. I have a pretty decent 401k going (an RSP-like plan) but would like to play around with some discretionary money, instead of having to wait till I'm in my 60's to reap the benefits. I'm in my 20's so I feel like I can be somewhat aggresive still, but I always seem to get stuck with where to start however, as I am overwhelmed by information (which i tend to overload on myself).

Does anyone here have suggestions/tips one where one should start if they want to get involved in investing/trading stocks? Ive started reading a few websites like motleyfool.com, but not really sure what else.

Any good books? Websites? Tv shows? Is Mad Money legit, or just over-hyped?

I'd recommend The Wealthy Barber by David Chilton. It's one of the best personal finance books ever written