Stocks - The Best Buys 2

[bizaro86]

If you're planning to do anything complex or trading frequently (other than penny stocks), it's pretty hard to beat interactive brokers. $0.01 per share commission (with a % cap for low $ stops). Plus the ability to enter complex option trades as a single order so it only fills if you get the whole trade.

[DoubleF]

Originally Posted by bizaro86

If you're planning to do anything complex or trading frequently (other than penny stocks), it's pretty hard to beat interactive brokers. $0.01 per share commission (with a % cap for low $ stops). Plus the ability to enter complex option trades as a single order so it only fills if you get the whole trade.

I really don't recommend these types of accounts to dabble with... For complex transactions and options, options are far cheaper than the actual shares themselves. You might save a few bucks on a few transactions, but overall, the other headaches aren't really worth it IMO. I feel like these types of accounts are far too complex for the average user. I'd also suggest doing proper research before signing up with one of these types of accounts. Some of them seem sketchy as hell.

I know a guy who got one to dabble with. The interface is so bad we can't even figure out how to get monthly statements. It shows the market value of the portfolio only. It looks like it was modified from a windows 2000 interface or something bush league. That, and somehow the money he transfers in isn't matching the amount he attempted to transfer in. I think the platform skims a chunk of the money to some weird admin fee or something. I honestly feel like his platform is closer to a fees scam that'll bleed his account dry with random fees beyond the $0.01 per share. I have no doubt he'll be able to use it to trade, but with the additional crap skimming his money, it's probably no cheaper than if he had gone through a big bank. I did ask him why he chose this platform and he told me it was cheaper, but mainly because it was the only platform he could find that would allow him to trade US securities. I thought he was joking. He was not. I really don't know where he got his financial advice from how he even found that platform. I really hope this account isn't going to screw him out of his money. The weird part is he's quite versed in computer programming. If he cannot find a monthly statement function on the interface... that's weird as hell.

I'm not saying all of those types of accounts are like this, but really do the research on the trading platform. I'd long suggest Qtrade/wealthsimple as a trade platform before I'd suggest these interactive brokers.

[bizaro86]

I'm not sure what your friend used, but Interactive Brokers is a large public company. Many/most small to medium hedge funds use it, because they have great execution, low commissions, and a powerful trading engine. They aren't a beginner type operation though, the software is very powerful but it's harder to use than a bank brokerage, just because it has so many more choices.

They have unbelievably good margin rates, and way lower commissions than anyone else available in Canada. They also have direct access to international markets (UK, EU, Asia, Australia) that no other broker in Canada offers.

They have transparent availability of borrow for shorting, and disclose the cost of borrow in advance. They also have an automated process for handling corporate actions (tenders, exchange offers, mergers, etc) which is way better than anything else. That combination makes them an easy choice for anyone doing merger arb type stuff. A few times on the phone spending 20 minutes explaining what I needed to the questrade employee (no, tender to the odd lot option...) when I could do it with 3 clicks at IB got me to switch everything.

[Slava]

Originally Posted by bizaro86

I'm not sure what your friend used, but Interactive Brokers is a large public company. Many/most small to medium hedge funds use it, because they have great execution, low commissions, and a powerful trading engine. They aren't a beginner type operation though, the software is very powerful but it's harder to use than a bank brokerage, just because it has so many more choices.

They have unbelievably good margin rates, and way lower commissions than anyone else available in Canada. They also have direct access to international markets (UK, EU, Asia, Australia) that no other broker in Canada offers.

They have transparent availability of borrow for shorting, and disclose the cost of borrow in advance. They also have an automated process for handling corporate actions (tenders, exchange offers, mergers, etc) which is way better than anything else. That combination makes them an easy choice for anyone doing merger arb type stuff. A few times on the phone spending 20 minutes explaining what I needed to the questrade employee (no, tender to the odd lot option...) when I could do it with 3 clicks at IB got me to switch everything.

Well I think that you're doing things that a lot of "average" investors shouldn't be doing. I realise I'm at the risk of sounding condescending and this might not be well received, but truthfully, trading options and using margin is probably something best left to people who know what they're doing and not just someone looking for "casual" investing. That doesn't mean that IB is bad or anything like that, it's just I don't know that they need those kinds of capabilities.

I did want to comment about the free trades though, as that's becoming more and more prevalent on some platforms. First, these free products are a loss-leader for sure. The ETF launched by Fidelity a couple weeks ago in the US is available on one platform I think and the plan there is clearly to bring people in and then sell them the higher cost products. The Wealthsimple free trades are in a similar vein, and as I understand will be purely for non-registered accounts (this is what I've heard, but that could be wrong). If so though, people need to bear in mind the tax consequences of these trades!

The other thing, and this might be seen as condescending as well, is that free trades just encourage bad investor behaviour. It encourages people to trade more because it's frictionless, and frankly, more trading will likely mean poorer results. You get the poorer results and suddenly those fund portfolios they offer the easy switch into don't look so bad, and voila....you have the investors paying the higher fee from what began as a free trading account.

[puckedoff]

Originally Posted by Slava

The other thing, and this might be seen as condescending as well, is that free trades just encourage bad investor behaviour. It encourages people to trade more because it's frictionless, and frankly, more trading will likely mean poorer results. You get the poorer results and suddenly those fund portfolios they offer the easy switch into don't look so bad, and voila....you have the investors paying the higher fee from what began as a free trading account.

I was going to make this point but had held my tongue... At times I wonder if switching from TD ($10/trade) to something cheaper would be better, then I remind myself that I shouldn't be trading enough for that to make a difference. 'Be Boring - Make Money'.

[OMG!WTF!]

Originally Posted by Fire in the disco

Apologies in advance as I’m sure this info is already somewhere in this thread. As a guy who wants to start trading casually what is the best way to get into the market? Apps like quest trade? Or?

Any tips are appreciated.

I think any and all tips start with risk management. You have to know when you've been proven wrong and then protect your capital. Human nature precludes us from trading well. But no matter what you do in the market, you must be able to identify when you're wrong.



That requires some sort of strategy when you buy as well as when you sell. None of what you do should be a gamble. You should have surprises to the upside but no surprises when it comes to losses.



Picking stocks is easy. Over coming psychology is by far the most difficult task you'll encounter in trading. Having a strategy with a positive expected result and rules you can easily follow help a lot in over coming bad trading psychology.

[Shazam]

Buy high, sell low. Chase performance. Always works!

[DoubleF]

Originally Posted by bizaro86

I'm not sure what your friend used, but Interactive Brokers is a large public company. Many/most small to medium hedge funds use it, because they have great execution, low commissions, and a powerful trading engine. They aren't a beginner type operation though, the software is very powerful but it's harder to use than a bank brokerage, just because it has so many more choices.

They have unbelievably good margin rates, and way lower commissions than anyone else available in Canada. They also have direct access to international markets (UK, EU, Asia, Australia) that no other broker in Canada offers.

They have transparent availability of borrow for shorting, and disclose the cost of borrow in advance. They also have an automated process for handling corporate actions (tenders, exchange offers, mergers, etc) which is way better than anything else. That combination makes them an easy choice for anyone doing merger arb type stuff. A few times on the phone spending 20 minutes explaining what I needed to the questrade employee (no, tender to the odd lot option...) when I could do it with 3 clicks at IB got me to switch everything.

That's great and all, but as Slava mentioned, that's something that seems far beyond the requirements and scope of a casual investor. I have no doubt it works great and it seems like it's a fantastic option for you or others like us who have much more experience and understanding with trading, but I stick to my guns in thinking a newbie should never jump straight into something like that. Like I mentioned, I'm sure not all of these platforms are bad, but for sure don't seem like the right platform for someone to begin dabbling in stocks with.

Not trying to be condescending as Slava said, but I stick to my guns in believing your suggestion isn't a good fit for a newbie. It's definitely a good suggestion for some of us who have been trading for many years though.

I think that a IB platform like the one you suggested would be great for some of us who are more comfortable and starting to feel the limitations of the platform we use. It also seems like an easier way to do a Norbert's gambit (not that I or quite a few others have felt the need to do so) or play around with some seriously fun and exciting gambles on the stock market.

Again, not trying to kill your idea or attack you, but it just doesn't seem like a fit for Fire in the Disco who is looking to slowly go from Mutual funds to stocks and ETFs.

Originally Posted by Shazam

Buy high, sell low. Chase performance. Always works!

My friend and I made some money on stock X, you should too! (thereby boosting the value of their already established stake)

Honestly speaking, my gambles are more along the lines of looking at running towards a stock that others are running away from. (ie: unrealistic overreaction causing a stock to plummet vs serious problems with the co)

[bizaro86]

Looks like I misread his ask - I saw 10+ years experience and looking for a trading platform. I did preface by saying options/more complex trades, as that is where IB excels.

As noted, if you're going to buy big cap stocks/index funds and hold them, it doesn't really matter where you buy them, the cost per trade will range from $0-$10, which doesn't make much difference. If you're saving a 1% MER by switching to index funds or buying quality companies, that will overwhelm the cost of commissions for sure.

[Shazam]

Has anyone tried arbitraging using ZQQ and QQQ? ZQQ is the hedged Canadian version of QQQ and lags about 15 minutes behind QQQ.

[Slava]

Originally Posted by Shazam

Has anyone tried arbitraging using ZQQ and QQQ? ZQQ is the hedged Canadian version of QQQ and lags about 15 minutes behind QQQ.

I don’t think it lags, just your quotes lag if you’re not on a real time system?

[Shazam]

It seems to be a real lag (I'm on a real time system). Bid/Ask prices also stay stable.

[bizaro86]

15 minute quote delay was the first thing that I thought of as well. Why not try a small trade and see if the quotes you're seeing are actionable. Also, I'd delete the post if they are...

[Shazam]

I was hoping somebody else already tried.

[Azure]

I think Canopy is just exploring the tip of the iceburg here as far as marijuana potential goes. We are talking about a sizable market leader who is going to be WAY ahead of everyone else in a multi billion dollar market that is JUST opening up.

They are at $59 right now, but my guess is they go over $200 once legalization happens, and big established food & beverage companies start getting into it.

253% return right now.

And the hell of it is Constellation Software would be giving you a 311% return right now if you bought in about 2 years ago. And NOBODY is talking about them.

[bizaro86]

I bought constellation debentures in a RRIF I help a relative with a few years ago. They are an interesting security, as the interest rate adjusts with inflation.

I looked at the common then, and thought it seemed like a good company, and figured I'd buy some if it got a bit cheaper (for myself, not really a RRIF type stock). Then I never did, as it just went up and up.

[bluejays]

Originally Posted by Azure

I think Canopy is just exploring the tip of the iceburg here as far as marijuana potential goes. We are talking about a sizable market leader who is going to be WAY ahead of everyone else in a multi billion dollar market that is JUST opening up.

They are at $59 right now, but my guess is they go over $200 once legalization happens, and big established food & beverage companies start getting into it.

253% return right now.

And the hell of it is Constellation Software would be giving you a 311% return right now if you bought in about 2 years ago. And NOBODY is talking about them.

Re: WEED, with the p/e already being so high compared to the alcohol or tobacco industry, and with so many players in the market and very little difficulty getting into the market, I don't see the full growth potential for it to get to $200. That's my unscientific belief, but how do you see it at a $200 valuation in the future?


Care to talk about the Constellation Software co?

[Azure]

Originally Posted by fleury

Re: WEED, with the p/e already being so high compared to the alcohol or tobacco industry, and with so many players in the market and very little difficulty getting into the market, I don't see the full growth potential for it to get to $200. That's my unscientific belief, but how do you see it at a $200 valuation in the future?

Untapped market potential throws everything else out of the window. Sure there will be ups an downs, but we are not talking about the stock price of a tech company going crazy despite the company itself losing millions, even billions every year with no plan at all how to turn a profit.

The marijuana industry will be an absolute monster. We have alcohol companies right now that are valued at a $100b. I don't think the stock price for the leaders in the field has anywhere to go but up.

I also don't think anyone has a clue how to judge it properly either.

Care to talk about the Constellation Software co?

Big successful Canadian tech company with a huge portfolio in many different industries that provides mission critical services and software to hundreds of thousands of customers with a nice steady growth curve and great leadership. Should be hired on the spot to fix the Phoenix pay system issues.

[snootchiebootchies]

Originally Posted by fleury

Care to talk about the Constellation Software co?

I bought Constellation Software at $160 and sold a few months later at $250, thinking it was due for some regression. Obviously, I'm kicking myself now. It's experiences like this one (and with Boyd Income Fund and CCL Industries) that's made me a buy and hold investor. If the story has not changed, I do not sell. I let the returns compound. There is a saying that taking profits is never a wrong move. Taking profits too early can indeed be a mistake.

[Bill Bumface]

Most stocks eventually to go zero, so while taking profits early can hurt in hind sight, profit is profit.

(I'm dumbing this down pretty severely, but if you self manage your portfolio by hand picking stocks and are making money at it, you are doing better than most)